Professional Tax Consultancy

A Tax Mitigation Strategy for Contactors

Professional Tax Consultancy Ltd has introduced a new service to our leading tax consultancy. We now offer an Employee Benefit Trust "EBT" solution specifically for contractors in conjunction with a carefully selected partner. This will allow a number of potential clients to enjoy the benefits of an EBT.

The Strategy is designed to minimise exposure to tax for businesses and individuals. Like all our strategies it relies upon statutory reliefs and rigorous controls to ensure proper implementation which is designed to withstand close scrutiny. The strategy has the benefit of a robust opinion from leading tax counsel.

In order to give you a flavour of the solution we have set out below brief details of what is involved, further details will be provided on request.

The strategy involves the use of a company which sets aside certain funds to an EBT for the employees of the company. This is not an "umbrella" company. The participants are paid part of their remuneration.through the company, after the deduction of tax and NIC. Thereafter, at the trustee's discretion, loans are made available to employees upon which benefit in kind tax is payable on the deemed interest benefit - currently 4%.

The arrangements provide participants with a standard tax code of a net return of 82% after tax and costs.

The strategy is easy to understand and explain to clients. This makes things simpler when handling enquiries from clients and provides them with peace of mind with what is happening.

We provide a bespoke service which is not generally available to professional advisers and their clients. With a dedicated point of contact, we will be working with you to ensure that your clients receive the right advice for their specific circumstances and that the process is properly explained and understood.

If you would like to discuss any of these strategies with us please do not hesitate to contact Peter Fry either by phone 0845 854 3334 or at info@protaxconsult.com