Do I go ltd or use an EBT or RT? Help

davieboy70

I am looking at going contracting and was gonna set up a ltd company until someone suggested using an Employer Beneficiary Trust(EBT's) or Renumeration Trust(RT's).

Are these legal and legitimate? They seem too good to be true which usuallt means they are? HELP!!!!

heretolearn_2

They are and they aren't. Sorry. We offer these to our clients but they are made aware that the HMRC are not entirely happy with them and it's possible that in future they will be challenged. In fact, EBTs as they currently stand are probably going to be closed down as a new option, but replaced by something else.

Anyway, the only situation we've used them in is for directors to take their remuneration in a more tax efficient way, I'm not sure you can use them without a Ltd? Plus they are only effective at a certain point - most EBTs require a minimum of £200k to be put into them, a few accept £150k, and I know of one that will sometimes consider a £100k input.