Employee Benefit Trust
EBT Scheme – Is There an Alternative for Contractots
Surge in Employee Benefit Trusts
Employee Benefit Trusts Surge
Employee Benefit Trusts are a suitable means of remuneration under the new FSA rules as they are often linked to length of service, and those who leave under a cloud can be excluded.
In consequence Kleinwort Benson is predicting an increased demand for EBTs so that firms can avoid the pitfalls of the new remuneration rules that the Financial Services Authority are introducing.
Many financial services businesses are currently in the process of implementing the requirements of the FSA’s Remuneration Code. The Code puts pressure on some employers to defer a proportion of variable cash bonuses and to award some bonuses in the form of shares.
The new rule surrounding reward in the financial sector is to affect an estimated 2,500 companies in the financial sector, consequently they are searching for alternative reward strategies to get around the restrictions that are to be placed on bonuses by the FSA’s new rules.
Attendees at the recent Great Employee Benefit Trust Debate learned how EBTs could be utilised to reward and retain staff.
Speaking at the EBT debate Andy Goodman, a Tax Director with BDO, the world’s fifth largest accountancy organisation, commented that although Employee Benefit Trusts are an affective, tax-efficient method of remuneration, the main driver for introducing such share schemes should not be the tax savings.
But rather, he said that companies should put their main focus on the motivational aspects of giving employees a stake in the business.
Tags: ebt, employee benefit trust, employee benefit trusts, employee benefits trust, employees benefit trust
3 Responses to “Surge in Employee Benefit Trusts”
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Who am I ?
Hey, Adrian here. I've been a contractor for 33 years and am always looking for the best way to reduce the burden of taxation.
Right on my man!
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