Or a lesson for Contractor Accountants in when not to use an EBT (employee benefit trust). If, like me, you follow Scottish football with the same enthusiasm a hamster has for tank warfare – you may have missed the tax debacle north of the border. Before I go into what it all actually means –
What is the VAT Flat Rate Scheme? Any business in the UK with a turnover of more than £73,000 must be registered for VAT. This means adding on 20% VAT to your normal sales invoice and paying the 20% VAT over to the VAT office. However, there is a scheme called “The Flat Rate Scheme”
You may know them by another name, such as an EBT or trust-loan scheme and the mechanics of them are fairly simple :- You go to work > your “client” pays your salary into a trust (somewhere like the Isle of Man) > The trust “lends” the money to you. The principle idea behind all
Off shore schemes – the greatest hits album or original sound track – your choice. Everyone writes articles. It’s part of the fabric of the internet to write down everything you believe about a chosen subject. Apart from ours, most of them are incredibly dull and will tell you very little you didn’t already know.