Employee Benefit Trusts


Do you have HMRC Tax Debt Due To A EBT?

We offer help for individuals and companies being pursued by HMRC for tax owed on Employee Benefit Trusts.

For Self Employed / Contractors

Don’t Panic. If demand from HMRC is putting you in a personal debt crisis – we may have a solution.

We may be able to offer a solution which avoids bankruptcy where the size of the amount you owe can be an advantage in providing debt relief from HMRC.

Talk to us to learn more.

For Company Directors

If you have been making your employee bonus and other payments by way of an EBT, HMRC could be coming for you.

Our corporate specialists are experienced in tackling all types of financial distress and specialise in complex taxation cases.

Talk to us to learn more.

Talk To The Experts

If you or your business is facing an HMRC demand because of an Employee Benefit Trust, get in touch for an informal consultation. We'll explain your legal position and your options to address your HMRC obligations.

Jane Hardy - Insolvency Practitioner


What is an Employment Benefit Trust?

EBTs have been widely used by employers as a tax-efficient alternative to cash bonuses for employees; and a way to pay freelancers and consultants. Post IR35, many self-employed individuals have set up EBTs to pay themselves.

Instead of receiving income subject to taxation, the money is placed in an offshore trust. Often, income is received by means of a loan. That is, money is lent back from the EBT, and is never paid back, and therefore does not attract taxation.

The NHS, BBC and even the Government have used EBTs to pay individuals.

What’s not to like?

Lots say HMRC and that EBTs loans fall under disguised remuneration legislation.

They have been challenging the tax status of EBTs for some time and have won a landmark case. HMRC can now make a retrospective demand for payment of all of the tax – including previous years. and now HMRC uses a device known as an Accelerated Payment Notice (APN) to recover all the tax in go. Often, the business or individual cannot pay. This can cause insolvency or bankruptcy.

Accelerated Payment Notices

HMRC have challenged the lawfulness of EBTs and is now further empowered by the introduction of APNs.

An APN (Accelerated Payment Notices) requires a company or individual to pay all tax owed upfront on an EBT, pending a tribunal hearing, without the need to await an outcome.

Follower Notices

These give recipients the chance to settle disputed tax under the Settlement Terms offered by HMRC in November 2017.

If taxpayers do not pay Follower Notices and then lose their case, HMRC can apply a penalty of 50% on top of the tax payable.

Take action now to avoid Bankruptcy or Insolvency

Our team can review your situation and advise on how best to manage an EBT Tax demand.

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We are the Focus Insolvency Group and have years of experience in dealing with complex matters for personal and corporate debts.

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EBT and HMRC issues

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EBT and HMRC issues