BIM44555 - Specific deductions: employee benefit trusts: general-purpose EBTs: deductions for employers바카라 사이트™ contributions: how to spot them

Deductions for EBT contributions will normally be clearly identified in the employer바카라 사이트™s profit and loss account, or in the notes to the accounts.

However if the deduction in the profit and loss account is disguised, perhaps within the description of 바카라 사이트˜salaries and wages바카라 사이트™, other sources which may reveal the existence of an EBT include:

  • a deduction in the profit and loss account for legal costs incurred in setting up an EBT (capital expenditure which should be added back in the tax computation, see BIM44505),
  • a deduction in the profit and loss account for a large bonus, in respect of which employers바카라 사이트™ NICs have not been paid and / or tax not deducted under PAYE,
  • employees바카라 사이트™ and directors바카라 사이트™ tax returns showing benefits received from an EBT, such as beneficial loans,
  • Employer Compliance staff identifying payments received by employees from EBTs during the course of a review,
  • HMRC Residency being notified of the existence of an offshore trust if it has UK source income,
  • a trust district being notified of the existence of a UK resident EBT,
  • WMBC Assets EBT Team being notified of the existence of an EBT set up by a close company because of Inheritance Tax reporting requirements.