Your questions answered

• Joining Sanzar Solutions
• Deductions
• Payments to you
• Legal & contractual
• Service & support

Legal and contractual

“Is your solution classed as tax avoidance?”

Since 2004 HMRC have implemented a disclosure regime to encourage transparency in relation to the marketing and use of Tax Solutions that they might choose to consider as Tax Avoidance. There are a number of hallmarks that HMRC look for to determine whether a particular arrangement will be required to register. The first Hallmark is regarding ‘Confidentiality’. We have concluded that as we are wishing to protect our Intellectual Property, then HMRC may argue that our solution satisfies this first hallmark and therefore we have registered with HMRC as a Tax Avoidance Scheme.

Registering with HMRC meant that we shared with them the basis in law that underpins our solution and the fact that we were pro-active in volunteering this information is a testament to the degree of legal due diligence undertaken and our overall confidence in the solution.

This must be shown on your tax return and helps HMRC by explaining to them and reassuring them about the nature of the payments you have received.

“What is the basis of Sanzar's tax efficient solution? Do you use an Employee Benefit Trust?”

Under our solution you will receive Payments on Account from a trust - but this is not an Employee Benefit Trust (EBT).

We ensure that all the payments that you receive from us in a tax year are completely resolved within that tax year. Sanzar employees are not left with a loan liability.

This is very different to how Employee Benefit Trusts work, where loans remain outstanding in perpetuity and represent a very real liability for individual employees. Our solution does not use Employee Benefit Trusts.

“I've heard negative rumours about 'dodgy' IOM-based tax-efficiency schemes; is yours legal?”

Sanzar Solutions works entirely within the law (UK & IOM). We do NOT use any loopholes. Our tax efficient structure has been reviewed thoroughly by one of the UK's most eminent International Tax QCs.

“If you registered with HMRC as a tax avoidance scheme, do I still need to complete my own Self Assessment Tax Return and, if so, do I declare the benefits I receive from the Sanzar Solutions?”

Absolutely. You must still complete your Self Assessment return and YES, you MUST include all the benefits you receive, i.e. your PAYE income and your payment on account from Sanzar Solutions. Our unique structure allows for complete transparency with HMRC. We will offer help and guidance when it comes to completing your self-assessment tax form.

“Is there an end date or fixed term duration with any conditions attached?”

No. As long as you are an employee of Sanzar Solutions, you will continue to benefit from our Tax efficient payment structure.

“Is your tax solution future proof? What would happen if the law changes?”

Sanzar Solutions works with a team of Tax Advisors and QCs who understand the current legislation and how our solution fits with that. If the law should change in the future, our solution would have to be amended so that we continue to act properly within the law.

The worst that could happen is that our employees have to switch to an alternative tax-efficient payment solution from Sanzar. Rest assured, we constantly review legislation and proposals and have a number of alternative solutions ready to implement, if necessary.

“If I join Sanzar, do I become an employee or a partner?”

You become a full and legal employee of Sanzar Solutions. You do not join as a Partner nor own shares in Sanzar Solutions.

“What happens if the HMRC (Inland Revenue) challenge the status of my income?”

Sanzar Solutions has spent a huge amount of time & money ensuring that we have received the very best legal and tax advice available. Sanzar Solutions's payment method is underpinned by firm legal precedents set in the UK courts. Sanzar Solutions operates fully within UK & IOM Law and therefore presents no additional risk of HM Revenue & Customs being able to challenge us.

“What happens if I die?”

Any monies owed to you will be paid to your nominated beneficiary (next of kin identified in the application form).