Member Article

Top city accountant issues warning for local businesses

Haines Watts Chartered Accountants Liverpool is encouraging businesses that have participated in Employee Benefit Trusts (EBTs) to seek professional advice immediately following a series of high profile cases in national press.

HMRC is clamping down to investigate companies, employees and other users of EBTs, and is now issuing Advance Payment Notices (APNs) to companies to collect the tax that HMRC thinks is due in these cases. In a bid to minimise costs and recourse to litigation, leading tax specialists Des Veney and Dave Waddington are urging both businesses and employees around the city to seek appropriate taxation advice.

Des said: “An EBT is a trust established either within the UK or overseas, set up by a company to hold its cash and other assets in order to provide benefits, particularly a significant tax reduction to its employees. HMRC is now issuing APNs to companies that have used EBTs.

“In light of recent news that documents how HMRC has won a considerable case against the use of EBTs, we are encouraging any companies or employees who take advantage of the scheme to contact us as a matter of urgency. Whether you have received a letter to state that HMRC is undertaking an enquiry or not, or if you have received an APN, it is important to get in touch with us as we can help to minimise any costs and recourse to litigation that may be incurred. Our expert advisors can also assist in the negotiation of terms on which HMRC is willing to settle.“

Haines Watts Chartered Accountants is an award-winning national firm that provides a range of accountancy services and business advice to over 35,000 clients across the UK, specialising in subjects such as tax matters, international services and funding and asset finance.

Des added: “HMRC had offered a settlement opportunity for anybody using an EBT. Now that the deadline has passed, HMRC is adopting a stricter approach to the matter.

“HMRC is actively clamping down on loopholes within the EBT system. It is for this reason that we are urging both individuals and companies to seek professional advice as soon as possible to help diminish the risk of the harsh consequences.“

For more information about Haines Watts Chartered Accountants visit www.hwca.com/accountants-liverpool or call 0151 227 3463.

This was posted in Bdaily's Members' News section by Craig Guy .