Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
Some benefits eg Job Seeker's Allowance are taxable, but distributed gross. Others are not. Some are distributed under PAYE arrangements whilst others are not. It all depends on the relevant benefit. Employers ebts are not popular with HMRC who consider gross distributions of them tax avoidance
The normal deduction rate would be 20%, but dividends bear a notional 10% rate.
I do hope that I have been of some help with your question. Perhaps you could be more specific.
1.would the EBT distribution have normal PAYE and NIC applicable.
2. how are distributions to familiy members treated?
2. HMRC would like them similarly subject to PAYE, but the rules are not entirely clear. You should read Wither's guide here:
the link does not work
Well it would, but it is not complete. Google in 'uk tax on ebt distributions' and it should come up.
1. can you be more specific on tax calc - is it at marginal rate of the receiving member.
2. would a family member who receives - be taxed at their marginal rate or original members rates
2. Their rate
Please note the validictory note for Withersworldwide [edited]:
'Except in very limited circumstances, the new rules signify the death of EBTs from 6 April 2011 if they are not Employees Stock Ownership Plans. Sums earmarked for employees will now be subject to income tax and NICs, preventing the deferral of taxation and therefore significantly impacting upon the attractiveness of new EBTs.'
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As you can see EBT's are effectively a dead duck since the 11/12 tax year. Another loophole effectively closed.