Why Employers Like EBTs

Employee Benefit Trusts are a great way of rewarding hard working staff. The cool thing is that these benefits can come in several forms. Staff can be paid a loan, cash distributions or it’s even possible to hold shares in the employers company. If you're an employer interested in setting up an EBT for your employees then these are just some of the benefits you may think of offering:-

1. Allow employees to benefit from zero interest loans.
2. EBT's can be used as a long term, tax effective savings plan.
3. Want to pay your employees a discretionary bonus payment, an EBT is a great vehicle for this

For employers interested in setting up an EBT it is recommended that you do your research as to where the Trust should be setup. Various jurisdictions have their own advantages and disadvantages. It is widely regarded that offshore is the best place to utilise an EBT.