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Trident Tax Launches New EBT/EFRBS Diagnostic Tool

Trident Tax Launches New EBT/EFRBS Diagnostic Tool

Trident Tax is pleased to announce the launch today of a new electronic diagnostic tool and review service for professional advisers with individual employee and employer clients who have disputed liabilities under disguised remuneration schemes (EBT/EFRBS).

The diagnostic tool and review service is provided free of charge on an anonymous basis and provides an indicative settlement figure (with a breakdown between the various taxes included in the figure) based on information provided by your client.

A better understanding of the settlement liability should allow clients to more accurately evaluate their current position and to decide whether to register for the latest settlement opportunity with HMRC prior to the 31st May 2018 deadline. In addition, the tool will enable a consideration of the critical question as to whether and how the company (or employee) is able to fund such a liability in the short to medium term.

Following an embargo on settlements, HMRC published its latest guidance taking account of the decision of the Supreme Court in the case of RFC 2012 plc (in liquidation) (Formerly The Rangers Football Club plc) v Advocate General for Scotland. The guidance provides some welcome clarity on the current settlement terms including confirmation of corporation tax relief on a scheme promoter’s fees (backdated to the year of the contribution if the year is “open”) and, the basis on which HMRC expect to be able to transfer PAYE and NIC liabilities to employees.

The many variables in the mix can make it difficult for clients to identify the right course of action at this time, with many feeling abandoned or distrustful of advice from the original scheme providers. The introduction of the disguised remuneration loan charge in April 2019 means, for most participants in disguised remuneration schemes, that “doing nothing” is no longer a viable option and a decision on whether to register under the settlement opportunity now needs to be made.

The anonymous diagnostic tool and review service provides a no cost option to support professional advisers and their clients in making that decision, based on the fact patterns of each case.

The EBT/EFRBS diagnostic tool and the current HMRC settlement opportunity will also be the subject of discussion in April at the next session of our Breakfast Tax Club to be held in our offices at 25 Bedford Square, London WC1B 3HH (further details to follow shortly).

If you would like to arrange to arrange to receive a copy of the diagnostic tool for any of your clients and/or details of how to attend the April Breakfast Tax Club, please contact us here.