sometimes simple is the best solution

EBT providers will be very keen to defend their market share until the last possible moment – indeed, as with the MSC legislation, some are likely to continue beyond any legislative change. Bearing in mind that many EBT providers are based ‘offshore’, these companies will continue to have a market for their services with international contractors, and it will fall to any individual UK contractor to ensure they are aware of any potential UK tax liabilities.

But there is an alternative which does not involve EBT’s, uses existing legislation and that offers returns at a similar level to existing EBT’s.

The solution offered by White Rock is a completely onshore, UK based solution which enables the UK contractor an after-tax return of around about 80% to 84% of total contract value. Some offshore operators offer currently offer rates as high as 88%; this represents a very high risk of investigation for participants. In fact HMRC call this 'aggressive avoidance'. Carefully balancing taxable contribution at a less aggressive, more reasonable level signals that an individual is happy to make their fair tax contribution.

The use of an onshore solution means the contractor benefits through:

•not having to fill in the foreign pages of the tax return;

•not having any non-commercial loans or related awkward questions to deal with;

•not having debts hanging over their estate;

•not being self-employed.

As an accountancy consultancy and members of the ACCA, White Rock is able to advise and assist with the correct completion of annual tax returns to ensure HMRC are given full and accurate information.

With only 8 months until the introduction of new legislation, time is of the essence. Now is the time to review current arrangements and make plans and arrangements in preparation for a change in the law. The history of both IR35 and the MSC legislation shows that contractors have usually been left in the dark with minimal information, and then forced to react quickly and ill-preparedly once changes come into force. White Rock can help beat the deadlines and avoid the rush today.