EBT are vehicles through which remuneration and other benefits are indirectly paid to employees.
The Inland Revenue has seen evidence that some trusts are being used to avoid paying income tax and national insurance.
The new legislation will defer the contributor’s corporation tax deduction until a payment is made out of the trust.
Tax experts say two categories of employer will be caught by the new rules: entrepreneurial types who set up the trusts offshore but never pay anything out. The second ones are large employers who develop ‘clever’ schemes to get out of paying national insurance.
Sarah Hyde, tax partner at Ernst & Young, said: ‘This is the only way he [Brown] could have stopped the abuse. But we never say die on these things.’
Crowe Clark Whitehill , the top 20 accountancy firm, has announced the promotion of Chris Mould to partner
The latest opinions from Accountancy Age on Making Tax Digital, and outline plans to evolve the UK's corporate governance regime
Five million taxpayers are ow using digital personal tax accounts (PTA) as part of the making tax digital strategy, HMRC said
UK-based non-doms have paid ten times more tax than the average taxpayer, raising concerns over the Brexit impact on non-dom contributions and therefore, the economy