EBTs and penalties for inaccuracies in returns:Delphi Derivatives Ltd v HMRC [2023] UKFTT 722 (TC) (18 August) is the second decision on the Clavis Herald avoidance scheme in recent weeks. The scheme involved an EBT but its structure was significantly different to the ‘standard’ EBT model in that the company implementing the scheme paid a very large sum to a remuneration consulting firm for advice. That advice invariably led to the consultants recommending the use of an EBT. The consulting firm after deducting its fee set up the EBT using the balance of the money paid to it by the company and loans were made by the EBT in the usual way to the directors of the company which had implemented the scheme. It was accepted that the scheme did not work and that PAYE and NIC should have been applied to the amounts involved. The...
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EBTs and penalties for inaccuracies in returns:Delphi Derivatives Ltd v HMRC [2023] UKFTT 722 (TC) (18 August) is the second decision on the Clavis Herald avoidance scheme in recent weeks. The scheme involved an EBT but its structure was significantly different to the ‘standard’ EBT model in that the company implementing the scheme paid a very large sum to a remuneration consulting firm for advice. That advice invariably led to the consultants recommending the use of an EBT. The consulting firm after deducting its fee set up the EBT using the balance of the money paid to it by the company and loans were made by the EBT in the usual way to the directors of the company which had implemented the scheme. It was accepted that the scheme did not work and that PAYE and NIC should have been applied to the amounts involved. The...
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