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Pick Your tax advisors Wisely

Tax advice

“Warren Buffett wisely noted, ‘It takes 20 years to build a reputation and five minutes to ruin it.’

Alright, gather round, footie fans and finance aficionados alike, because I’ve got a tale for you! This isn’t just about football; it’s about big money, tricky trusts, and a legendary club’s near downfall 😒

So, there’s this massively renowned Scottish football club called Rangers FC. No kidding, they’re like the Beatles of Scottish football. For years, they were on a winning streak, nabbing trophies and making waves. But behind those victory laps, there was a wee bit of financial drama brewing 😧

Enter Employee Benefit Trusts, or EBTs. Think of EBTs as sneaky little tools that let employees and employers pay fewer taxes. “Genius, right?” thought Rangers. From 2001 to 2010, Rangers paid over £47 million into EBTs. And guess what? Those EBTs were tax-free! Suddenly, star players with fat wallets were flocking to the club. It was like Black Friday for footballers ⚽

However, as granny always said, “If it looks too good to be true, it probably is.” The UK taxman, HMRC, raised an eyebrow. “Hold on, lads. What’s this EBT magic you’re up to?” Rangers were in the spotlight, and not in the good, ‘we-just-scored-a-goal’ kind of way 😒

The plot thickens! The case dragged on for years. Meanwhile, fans were biting their nails, opponents were having a field day, and the media? Well, they were in a frenzy. The verdict? Rangers had done some dodgy dealings. They were handed a hefty tax bill that sent shockwaves through the club and its loyal fanbase 👈

It went all the way to the supreme court who ruled in HMRC’s favour, saying that Rangers’ use of EBTs, while crafty, was indeed tax avoidance. The upshot? Rangers had to cough up a pretty penny in settlement fees. Talk about a financial own goal!

The club’s reputation took a hit, their finances went haywire, and they were even demoted to the Third Division. Ouch! 😧

The complexities of tax can be daunting. Whether it’s understanding nuances, interpreting new regulations, or simply ensuring you’re benefiting from all possible deductions, having the right advisor makes all the difference.

With our “Tax Advice” service, you’re not just choosing someone to look at numbers—you’re selecting a partner in your financial journey. So, always remember: Choose your tax advisors wisely 👍

If you need help navigating the complex world of tax do send me a message I’m sure we can help

Disclaimer: Paul Stankiewicz is the owner and principal at Paul Marks & Co Chartered Accountants which is the trading name of Paul Marks Ltd a Limited Company registered in England and Wales (registered number 4487645).This article is designed for the information of readers only and is the opinion of the author only. Readers should not act on any of the information contained in this article without seeking professional advice. Nothing in this article constitutes advice, nor does the transmission, downloading or sending of any information or the Material create any contractual relationship. Links to third party websites are provided as a convenience to the reader, Paul Marks Ltd does not control and is not responsible for any of those websites or their content. Paul Stankiewicz and Paul Marks Ltd accepts no liability or responsibility whatsoever for any loss or damage suffered by any user of the information contained on or accessed through this article or the Material downloaded.