The Supreme Court have today (5 July 2017) found in favour of HMRC with regard to the long-running Employee Benefit Trust (“EBT”) case.
This is the final nail in the coffin that puts beyond doubt that from a PAYE perspective, the use of EBT’s by company’s was ineffective and that contributions into an EBT should have been subject to deduction of income tax under the PAYE regulations at the time they were made.
Many EBT investigations had been effectively put on hold pending the outcome of the Rangers case, but HMRC are now likely to revisit these with the wind well and truly in their sails. We are likely to see a whole slew of Follower Notices over the next few months in the light of this.
If believe you may be affected by this ruling please do talk to us, as we are expert in resolving EBT disputes with HMRC.