EBT Schemes - contracting

[mark seeker]

Hi

I'm considering using an EBT 'umbrella' company - I have read some bad press regarding the schemes, but never of anyone to actually be caught short by the schemes?

Any advice appreciated.

[Eric Mc]

EBT?

[mark seeker]

The scheme I have been offered charges around 7% interest on the 'loan' so as not to end up as a BIK.

I'm just a little wary of the payment via the loan - whilst the HMRC discuss this payments via loans, they don't say you cannot do it etc.

[Eric Mc]

Thought that was what the OP was on about.

Very, very risky as a tax avoidance measure, in my opinion.

[mark seeker]

After questioning the 'umbrella' type company earlier they have told me that actually they don't use EBT but actually "Share Option Scheme" - link below:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Ta...

Still sounds fishy