House selling wierd offer ...

If you've got the cash to pay for half the property now then I'd have thought with a 50% deposit you're in a good position to easily get a mortgage for the rest. It's a bit of a stretch to envisage a scenario where you can have such a sizeable deposit yet have a business which must look like it's on the point of bankruptcy for you to be refused a mortgage for the rest. I rather thought cash reserves and turnover/income would be taken into account for any mortgage or am I mistaken in that belief?
 
semi-pro waster said:
If you've got the cash to pay for half the property now then I'd have thought with a 50% deposit you're in a good position to easily get a mortgage for the rest. It's a bit of a stretch to envisage a scenario where you can have such a sizeable deposit yet have a business which must look like it's on the point of bankruptcy for you to be refused a mortgage for the rest. I rather thought cash reserves and turnover/income would be taken into account for any mortgage or am I mistaken in that belief?
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This. He's full of ****, as usual.

And as far as having "done nothing wrong", the situation you describe, Britboy, is commonly known as "cooking the books". Which is tax evasion, and illegal.
 
semi-pro waster said:
If you've got the cash to pay for half the property now then I'd have thought with a 50% deposit you're in a good position to easily get a mortgage for the rest. It's a bit of a stretch to envisage a scenario where you can have such a sizeable deposit yet have a business which must look like it's on the point of bankruptcy for you to be refused a mortgage for the rest. I rather thought cash reserves and turnover/income would be taken into account for any mortgage or am I mistaken in that belief?
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no. If you go to a mortage company saying 'I have 300K cash, but my business is (technically) not doing too well and I have no other source of income' they won't lend you a further 300k. They have a obligation to ensure you can afford a 300K mortgage.
 
Can I go for secret option 2?

There is no house, there is no business, there is no accountant and....

....like the cake, Britboy is a lie.
 
Pestilence said:
the situation you describe, Britboy, is commonly known as "cooking the books". Which is tax evasion, and illegal.
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Er nope. If a company (for example) sells its assets over 5 years to avoid an (otherwise) spike in revenue over a single year, to avoid hitting a higher tax bracket, er, that's just running a business efficiently.. :)

If a company is gonna make a lot of profit over a year and not so much next year, so buys a lot of company assets in year 1 and locks half in a cupboard until year 2 to lower the profit of year 1 and reduce the tax bill ... er, that's not tax evasion :)

I thought everyone knew businesses do this kind of malarky all the time :) It's not evasion .. it's not illegal. Dont' they teach you kids anything in school :):):):):)
 
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britboy4321 said:
no. If you go to a mortage company saying 'I have 300K cash, but my business is (technically) not doing too well and I have no other source of income' they won't lend you a further 300k. They have a obligation to ensure you can afford a 300K mortgage.
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So mortgage companies don't look at the fundamentals of the business and are too daft to understand that the business is essentially ok despite adjustments made to reduce tax liability - is that an accurate summary? I don't know huge amounts about how mortgages are calculated but I'm surprised if they are done without a thorough evaluation.

britboy4321 said:
Er nope. If a company (for example) sells its assets over 5 years to avoid an (otherwise) spike in revenue over a single year, to avoid hitting a higher tax bracket, er, that's just running a business efficiently.. :)

If a company is gonna make a lot of profit over a year and not so much next year, so buys a lot of company assets in year 1 and locks half in a cupboard until year 2 to lower the profit of year 1 and reduce the tax bill ... er, that's not tax evasion :)

I thought everyone knew businesses do this kind of malarky all the time :) It's not evasion .. it's not illegal. Dont' they teach you kids anything in school :):):):):)
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Structuring your assets in such a way as to reduce your tax burden is sensible and businesses are almost obligated to do so, however the way you are presenting it makes it sound like the line between having a minimal tax liability and tax evasion aren't as clear as they could be.
 
They don't teach forum lying, or tax evasion, or embellishing the truth at school, no.
Imdoubt they will, unless you post a thread saying you are starting to lecture.
 
Firestar_3x said:
How would that situation be any different if he collected the rent reach month?
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He might have noticed and if it hadn;t been cash up front he might have at least their real names and addressess and both of them had PAYG mobiles which they paid cash for.

To this day, nobody knows who they were. If it was a bank transfer of rent up front and standing order then at least there would be some tracablility.
 
semi-pro waster said:
So mortgage companies don't look at the fundamentals of the business and are too daft to understand that the business is essentially ok despite adjustments made to reduce tax liability - is that an accurate summary? I don't know huge amounts about how mortgages are calculated but I'm surprised if they are done without a thorough evaluation.



Structuring your assets in such a way as to reduce your tax burden is sensible and businesses are almost obligated to do so, however the way you are presenting it makes it sound like the line between having a minimal tax liability and tax evasion aren't as clear as they could be.
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1) Yes it is surprising -- but mortgage companies don't give a flying monkeys in any way whatsoever about the 'fundamentals of your company' (I know as I've been on the phone to them all week!). They can't be bothered with it (for a mortgage my size). It's just 'tell us the profit. Tell us the profit. Tell us the profit'. They only asked for the type of company it was in passing, no details, not even the number of employees, nothing!!

2) I DO think the link between reducing tax liability and evasion is FAR TOO A GREY AREA. For example if you run a computer company, you could try and buy a 60 inch 3D plasma TV to 'give demos of computer games you're trying to sell'. Then use it for 2 hours in your business, and basically shove it in your car, take it home and put it in your living room. Not income tax paid. No VAT (well, claimed back). No NI. Watch and enjoy.

- Will the inland revenue ever check .. almost definately 'nope'
- If they do check and you say 'No demos this week, it'll be back in the office for more demos in 2 days' will they be satisfied and no further action? Probably
- BUT could they say 'Nope this is a personal thing you've claimed through the business, see you in court' and next thing you're in the clink for 18 months.. MAYBE. ... it's a frustratingly grey area ...

It's blimin' grey -- and it winds me up. My brother is an accountant for a pub and he says the landlord claims his shampoo (as well as everything else) 'through the company' (no income tax, VAT etc) -- as 'his customers wouldn't put up with him having dirty hair so it's a business purchase'. It's not black line illegal, or black-line legal. It's whether the taxman is having a nice day or fancies being a badman and taking the landlord to court. It's a mentally gray area ... :(
 
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britboy4321 said:
Nope, just a business man. As a general rule every business pays as little tax as it can legally get away with. I have broken no rules. :)
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Ok I agree that having an accountant reduce your tax bill is perfectly normal and legal but you're making it sound like they've cooked the books which isn't.. :confused:

britboy4321 said:
Well ..

my accountant has done such a good job of making my business accounts look bad to lower my tax bill that at the moment the books are lolworthy (this is actually a good thing until someone other than the taxman is interested in how your business is doing).
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