Employee Ownership Trust (EOT)

[toffee balls]

Does anyone of the great and good of BM have any experience of this process.
The business I have worked for since Adam was in short pants are considering it.

Any advice would be appreciated

 

[denislawsbackheel]

Nice way for owners and shareholders to sell up and minimise tax liabilities.

 

[mat]

Big fuck off tax dodge with liabilities given to the employees i hazard a guess?

 

[toffee balls]

Bump

 

[Blue Mist]

Bump

Sorry toffee, I dont really know but I think it is a good thing.

That said I am basing it on @mat post. If he is slagging it off, the employer is clearly doing a good thing for the work force. :-)

Edited due to shite typing

 

[mat]

Sorry toffee, I dont really know. I think it is a good thing.

That said I am basically it on @mat post. If he is slagging it off, the emoyer is clearly doing a good thing for the work force.

I thought it was the co-operative business model which I believe there should be more of. However, I need a real expert, not a raving lefty with cognitive bias to explain it properly

 

[Saddleworth2]

Richer Sounds has this as an ownership model. It sounds enlightened and fantastic.

 

[Gareth Barry Conlon]

It's basically another way of selling a business. It has a massive tax break in it for the seller. But they have to sell to employees. Could be great result for some.

Sounds rife for tax evasion. Maybe I'm just sinicle.

 

[denislawsbackheel]

Wrap it up anyway you want it’s a tax dodge.
There is no CGT for the owners to pay if set up carefully.
They are often abused.

EOTs - avoiding the tax avoiders - The RM2 Partnership

The CIOT have suggested that EOTs are, in some cases, being advanced purely as a tax-saving solution. RM2 provides a considered opinion.

www.rm2.co.uk

And I note Julian Richer kept 40% of the business

 

[Blue Mist]

I thought it was the co-operative business model which I believe there should be more of. However, I need a real expert, not a raving lefty with cognitive bias to explain it properly

I've just re read my very poor typing, it's what you said.

 

[toffee balls]

Thanks for all the replies guys - food for thought

 

[Saddleworth2]

Thanks for all the replies guys - food for thought

You may find this interesting

Leadership Blog

Quick reads to inspire you to try new things and sharpen your skills plus real voices from real people, sharing their stories, challenges and successes.

www.institutelm.com

It seems that this was a natural step for Julian Richer who always ran the company according to a very strong colleague centric ethos. The company has always been super hot on its tax responsibilities too.

The obvious question to ask is this a natural step for your organisation or is it very much out of character? The answer may give you a clue to their motives.

 

[toffee balls]

You may find this interesting

Leadership Blog

Quick reads to inspire you to try new things and sharpen your skills plus real voices from real people, sharing their stories, challenges and successes.

www.institutelm.com

It seems that this was a natural step for Julian Richer who always ran the company according to a very strong colleague centric ethos. The company has always been super hot on its tax responsibilities too.

The obvious question to ask is this a natural step for your organisation or is it very much out of character? The answer may give you a clue to their motives.

Very interesting and positive find- cheers

 

[Blue Mist]

Thanks for all the replies guys - food for thought

@toffee balls In many respects you are a guest of our forum and so may not realise that in Off Topic we try our best to provide thoughtful and hopefully helpful advice. In this regard can I suggest that there is one sure fire way to see whether the owners intention is good or bad.
Simply brick all his windows and torch the gaff. If he rebuilds and starts again he is a good guy. If he simply takes the insurance money and does one, he is a bad guy.

No need to thank me as I always say, here to help, happy to help.

 

[toffee balls]

@toffee balls In many respects you are a guest of our forum and so may not realise that in Off Topic we try our best to provide thoughtful and hopefully helpful advice. In this regard can I suggest that there is one sure fire way to see whether the owners intention is good or bad.
Simply brick all his windows and torch the gaff. If he rebuilds and starts again he is a good guy. If he simply takes the insurance money and does one, he is a bad guy.

No need to thank me as I always say, here to help, happy to help.

Can I quote you on this

 

[journolud]

@toffee balls In many respects you are a guest of our forum and so may not realise that in Off Topic we try our best to provide thoughtful and hopefully helpful advice. In this regard can I suggest that there is one sure fire way to see whether the owners intention is good or bad.
Simply brick all his windows and torch the gaff. If he rebuilds and starts again he is a good guy. If he simply takes the insurance money and does one, he is a bad guy.

No need to thank me as I always say, here to help, happy to help.

Shouldn't you have mentioned smashing the back doors in? or something like that

 

[Blue Mist]

Shouldn't you have mentioned smashing the back doors in? or something like that

That was to be a follow-up. I was going to charge a small fee as an EOT consultant once I'd conned ergh got Mr/Ms balls on board. Now I might struggle :-(

 

[Saddleworth2]

Shouldn't you have mentioned smashing the back doors in? or something like that

Its de rigueur on here to mention that I would have thought.