The directors trust,the money farm,EFRBS,profit retention,tax planning,corporation tax planning,IHT advice,how to reduce tax,corporate tax reduction,business planning,financial planning,financial advice,finances,UK income tax,tax strategy
The directors trust,the money farm,EFRBS,profit retention,tax planning,corporation tax planning,IHT advice,how to reduce tax,corporate tax reduction,business planning,financial planning,financial advice,finances,UK income tax,tax strategy
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Proud sponsors of
Sound Financial Planning
"The Money Farm is a leading profit
extraction consultancy"
extraction consultancy"
What does it all cost?
To set up an EFRBS, raise contracts, submit for approval The Money Farm will charge £5.000.00 plus £50.00 per member. Annual charge for administration of £1,500. Transaction fees £300.00 + dispersments. All are + VAT. All costs are legitimate expenses and fully tax deductible.
Does each member effectively own a proportion of the EFRBS?
Contributions are paid into an EFRBS which is legally called a ‘common trust’ and therefore the funds are for the shared ownership of the members. While the trustees may, by trustees minute, notionally allocate funds to particular members such allocation is not ‘written in stone’ and at a later date, if advantageous, can be amended.
What happens to an EFRBS if the sponsoring company goes under?
An EFRBS is a separate legal entity to the company therefore the assets of the scheme are totally safe from company creditors. It has been long argued that directors who own their own company should put contributions into exempt approved company pension schemes to ensure company creditors cannot have access to the profits, exactly the same applies to EFRBS.
Is there a minimum contribution?
No. However, as the costs of setting up an EFRBS and maintaining it are fixed then a reasonable amount needs to be contributed and as an ongoing efficient vehicle creating wealth, you must bear in mind that if the original contribution is relatively modest, future contributions, often on an annual basis means that the costs of running the scheme reduce significantly when compared to the total value of the fund. The fees bear no relationship to the fund value.
To set up an EFRBS, raise contracts, submit for approval The Money Farm will charge £5.000.00 plus £50.00 per member. Annual charge for administration of £1,500. Transaction fees £300.00 + dispersments. All are + VAT. All costs are legitimate expenses and fully tax deductible.
Does each member effectively own a proportion of the EFRBS?
Contributions are paid into an EFRBS which is legally called a ‘common trust’ and therefore the funds are for the shared ownership of the members. While the trustees may, by trustees minute, notionally allocate funds to particular members such allocation is not ‘written in stone’ and at a later date, if advantageous, can be amended.
What happens to an EFRBS if the sponsoring company goes under?
An EFRBS is a separate legal entity to the company therefore the assets of the scheme are totally safe from company creditors. It has been long argued that directors who own their own company should put contributions into exempt approved company pension schemes to ensure company creditors cannot have access to the profits, exactly the same applies to EFRBS.
Is there a minimum contribution?
No. However, as the costs of setting up an EFRBS and maintaining it are fixed then a reasonable amount needs to be contributed and as an ongoing efficient vehicle creating wealth, you must bear in mind that if the original contribution is relatively modest, future contributions, often on an annual basis means that the costs of running the scheme reduce significantly when compared to the total value of the fund. The fees bear no relationship to the fund value.