Last updated: 14 October 2026
Are emails about employee benefit trusts a scam?
Some are. If you receive an unsolicited email offering a way to extract money from your company tax-free through an employee benefit trust (EBT), treat it with great caution. HMRC has spent years challenging EBT and “disguised remuneration” schemes, and the loan charge applied to many of them. Separately, fraudsters send emails pretending to be from HMRC about EBT settlements to get personal or bank details. HMRC never asks for bank details or payment by email.
Types of EBT emails
| What it probably is | |
| Promoter offering tax-free payments via an EBT | High-risk avoidance scheme; likely to fail |
| Message claiming HMRC is settling your EBT case, asking for bank details | Phishing scam |
| Genuine HMRC letter about an EBT you used | Real: usually by post, with a reference |
| Adviser offering to settle an old EBT with HMRC | May be genuine; check credentials |
Why EBT schemes fail
Under disguised remuneration rules, loans or payments from an EBT to employees or directors are taxed as employment income. The Supreme Court decided in the Rangers case (2017) that payments routed through a trust were still earnings. The loan charge then taxed outstanding disguised remuneration loans at 5 April 2019. HMRC’s Promoters of Tax Avoidance Schemes regime targets those selling them.
Spotting a scam
- It’s from a free email address or a domain that isn’t gov.uk
- It asks you to click a link and enter bank or card details
- It threatens immediate action or offers a refund
- It uses pressure: “act today”
Forward suspicious emails to phishing@hmrc.gov.uk and delete them.
Example
Mark, a company director, gets an email offering to “convert dividends into tax-free trust loans, HMRC approved”. The promoter isn’t regulated and there’s no HMRC approval number, just a scheme reference. Mark asks his accountant, who explains that it’s a disguised remuneration scheme HMRC has already challenged. He doesn’t sign up. A month later, he receives an email “from HMRC” saying he’s owed a refund from an EBT settlement and asking for his bank details. He forwards it to HMRC’s phishing team.
Genuine EBTs
Legitimate EBTs exist, mainly for employee share schemes and employee ownership trusts. They hold shares for employees and are usually set up by established advisers with clear commercial purposes.
If you’re already in a scheme
- Get independent advice
- HMRC may offer settlement terms
- Don’t ignore HMRC letters
- Check whether HMRC’s settlement opportunity, announced after the 2025 independent loan charge review, could reduce what you owe
Common mistakes
- Trusting “HMRC approved” claims
- Clicking links in unsolicited emails
- Paying promoters’ fees in advance
- Ignoring genuine HMRC correspondence about past schemes
Frequently asked questions
Does a scheme reference number mean HMRC approval?
No. It only means the scheme was disclosed to HMRC, and HMRC never approves avoidance schemes.
How do I report a promoter?
Use HMRC’s online form for tax avoidance schemes.
Is an EOT the same as an EBT?
An EOT is a type of employee trust with its own reliefs.
Can HMRC contact me by email?
Sometimes, but never to ask for bank details.
Related: HMRC accounts hit by scammers, transactions through your personal bank and HMRC questions about money overseas.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with tax scheme reviews and HMRC settlements. See our limited company accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
