EBT settlement opportunity - imminent deadline
Businesses must register with HMRC by 31 October 2016 if they wish to agree a settlement and get transition relief for investment growth. The Government has allowed businesses that use an avoidance scheme, such as those involving an Employee Benefit Trust (EBT) or contractor loan, to reach a settlement with HMRC.
In particular, if settlement is reached by 31 March 2017, the business will be able to benefit from relief on investment growth.
HMRC has now announced that in order to benefit from the transitional relief, those businesses that used a remuneration scheme, and wish now to settle must register with HMRC by 31 October 2016 and reach a final settlement by 31 March 2017.
With PAYE now expected on the older (previously exempt) loans, settlement is looking more attractive.
If you would like to talk through the issues or need help calculating your liability please get in touch.
Date: 11th October, 2016
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