HMRC announced the closure of the above opportunity, a settlement opportunity for employers who have used EBTs. The opportunity will close in March 2015.

By way of background, the EBT settlement opportunity was opened in 2011 following the introduction of the new Disguised Remuneration rules in Finance Act 2011. The current announcement details that the initiative has raised £800 million in tax and National Insurance Contributions from around 700 employers who previously used EBTs. HMRC expects others to settle in the near future and have stated clearly that they will pursue those who don’t do so through the courts.

HMRC also advise that some individuals seeking to use EBTs have attempted to use the Liechtenstein Disclosure Facility (LDF) – under which individuals with undeclared offshore assets can regularise their tax affairs. Recently, HMRC and the Liechtenstein government have made changes to the LDF which, among other things, mean that users of EBTs that are caught by the Disclosure of Tax Avoidance Scheme rules cannot take advantage of the full terms of the facility. They should therefore engage in the EBT settlement opportunity instead, while it is still available. These users are still able to access the limited terms (immunity from prosecution and a bespoke service with a single point of HMRC contact) but will gain no financial advantage from settling under the LDF.

Users who wish to settle using the opportunity will need to have notified HMRC of their intention by 31 March 2015 and have entered the agreement and paid all amounts due by 31 July 2015. More information on the EBT settlement opportunity is available on the HMRC website.

HMRC also advise that the first Accelerated Payment notices are being sent out to avoidance scheme users this month. Accelerated Payments powers were introduced last month as part of the Finance Act 2014. Under these powers, HMRC is able to seek upfront payments of disputed tax from members of avoidance schemes.