Readers’ forum: What to do about EBT reporting error?

I have just taken over a new corporate client. During discussions with the director it has emerged that the company implemented a fairly standard EBT loan scheme in the three years from 2006.

The trustees were the directors of the company and there was no separate trustee bank account. The paperwork was poor though there was a basic trust deed and in reality all that happened was that money went from the company bank account to the director described as an EBT loan. The contribution to the EBT was not disclosed separately in the accounts or tax computations and the amount was simply included in directors’ remuneration. The loan has remained in place ever since. HMRC has never raised any enquiries or issued any assessment in relation to these arrangements. I am aware that the loan charge does not apply to loans made before 9 December...