Common FAQs

Frequently Asked Questions

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1. Joining Contracta
2. Payments and Timesheets
3. Employment Benefit Trusts

3. Employment Benefit Trusts

• Are Employment Benefit Trusts still used?

  Employee Benefit Trusts were effectively made redundant through the draft legislation of the Finance Bill 2011.  In addition, anti-forestalling provisions already apply to the 'payment of sums and the provision of readily convertible assets for the purposes of securing the payment of sums (including loans) where the sum is paid or the asset is provided between 9 December 2010 and 5 April 2011 where, if paid or provided on or after 6 April 2011, they would be caught by the legislation.'  

• What effect will this have on contractors? 

  The end of the EBT will have an effect on the IT and contracting industry.  The end of the EBT will most likely result in a significant rise in the number of limited companies formed by contractors in 2011, with a number electing to join a contractor solution, such as that offered by Contracta.