Should I Rush Into Signing Up For An Employee Benefit Trust?
No you shouldn’t! It’s vital before changing your payroll circumstances that you perform any due diligence you need to satisfy yourself that you’re happy with any ongoing arrangements. You may choose to involve independent financial advice before committing to anything. Of course the downside is that the longer you hold off the more money you are not saving.
Can I carry On With My Umbrella Company And Take Advantage Of An EBT?
In order to take advantage of an Employee Benefit Trust you need to be an employee, this means being paid separate to your current company (be it an Umbrella Company or your own personal Limited company). There is nothing to stop you retaining any directorships that you currently have but you must be aware that any contracts will be invoiced via your new employer.
Will I Have To Pay Back My Employee Benefit Trust Loan?
All being well and if the EBT scheme you have chosen has been structured correctly then there should be no need to repay any loan. Various EBT scheme providers have their own way of dealing with this and as part of your due diligence it’s vital that your check the arrangements for when you choose to leave the Employee Benefit Trust.
Just time for one last bonus question. Should I use an Employee Benefit Trust?
No. Paying taxes are good. They help distribute the wealth from people who go out and work for a living to those who choose to not work. It’s a brilliant system and anybody using legal ways to mitigate their tax responsibilities is morally the devil in disguise.
