Tax Avoidance
- Thread starter stig
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stig said:After watching last nights no tax please we're rich , ive become quite interested in thsi topic! does anyone know any good sites about tax avoidance techniques? (this isnt illegal any dons)
*S
Speak to an accountant, after all thats what you pay them for
Caporegime
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LOL contradiction there between your post and the title.
Tax Avoidance is legal.
Tax Evasion is illegal.
There is a difference.
Tax Avoidance is legal.
Tax Evasion is illegal.
There is a difference.
Caporegime
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Basics
If you are a director, there are ways to get paid that is tax free
If you want to leave money for your children, there are ways like Trust and PET
There are various relief to paid less tax, taper relief, roll over relief, hold over relief, there are annual allowance...etc. Some reliefs only apply to businesses, so if you are a sole trader, consider setting up a company, stuff like that.
Just ask your accountant for more detailed info.
If you are a director, there are ways to get paid that is tax free
If you want to leave money for your children, there are ways like Trust and PET
There are various relief to paid less tax, taper relief, roll over relief, hold over relief, there are annual allowance...etc. Some reliefs only apply to businesses, so if you are a sole trader, consider setting up a company, stuff like that.
Just ask your accountant for more detailed info.
Associate
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read an article in one of the hospital doctor magazines about how to avoid inheritance tax (legally) as many properties are now worth more than the threshold for paying inheritance tax on
the article was written by this crowd
http://www.avoidinheritancetax.co.uk/
ring them and ask
and no i do not have any vested interest in them
the article was written by this crowd
http://www.avoidinheritancetax.co.uk/
ring them and ask
and no i do not have any vested interest in them
That's not quite what stig was talking about, though.Raymond Lin said:
What he's referring to are the clever schemes that highly paid tax experts dream up to exploit loopholes, rather than just taking advantage of allowances (etc) that are intended to be used. Avoidance schemes generally have a limited life, because once they become widely used, the Revenue becomes aware of them and plugs the loophole.
This, of course, is as opposed to evasion schemes that generally involve illegal ways of evading tax you should pay. Avoidance schemes are legal, because they use existing laws and tax rules in ways that those framing the laws hadn't intended. If you get caught evading tax, you'll probably get a heavy set of financial penalties and maybe a jail sentence. If you are avoiding tax, you'll get the tax man irritated, but what you are doing is, by the letter of the law if not the spirit, quite legitimate.
Be careful.stig said:After watching last nights no tax please we're rich , ive become quite interested in thsi topic! does anyone know any good sites about tax avoidance techniques? (this isnt illegal any dons)
*S
These schemes tend to come and go, so by the time it ends up on a website, it is very likely out of date.
If you try to apply out of date schemes, you can end up getting clobbered. It is REALLY worth getting expert advice before trying it (IMHO of course). And that, of course, is why people that have effective schemes don't tend tp publicise them ... because if they do, the loophole gets closed even earlier.
My advice, for what it's worth ..... anything you find on a website may be interesting, but it won't be useful. Don't trust it. Avoidance is a moving target, and a fairly quickly moving target at that.
speak to an accountant, take in previous tax returns, investment details, details of your comp & benefits package (you would be surprised how tax inefficient some employers are, small changes in your C&B package can have big tax gains at no cost to your employer) etc
They will quickly be able to tell you if there is anything you can do.
Its not illegal, dont worry about that, worst that can happen is they close some of the loopholes & you go back to paying normal tax, but the budget normally brings new ones..
most people pay too much tax due to our stupidly over complex tax system
They will quickly be able to tell you if there is anything you can do.
Its not illegal, dont worry about that, worst that can happen is they close some of the loopholes & you go back to paying normal tax, but the budget normally brings new ones..
most people pay too much tax due to our stupidly over complex tax system
The types of scheme stig was referring to are the preserve of the well-off or wealthy, ranging from getting paid in gold to taking up residence in Monaco (because of the zero income tax). The type of thing a high street accountant may be able to tell you might (stress might) save a few quid, but it isn't what the program he mentioned was about.mcmad said:
The bottom line is that proper avoidance schemes require expert advice and the only way the expense of that advice is justified is if you're talking about very large sums. There's generally very little that the employed can do, beyond taking up tax-efficient savings vehicles (created by the government). To really take advantage of avoidance techniques, you generally need to have rather large sums to shift about, and preferably income generated in countries other than your tax domicile, residence in tax havens, fancy trusts and so forth.
To quote someone or other: "To him that hath, shall be given; to him that hath not, shall be taken away even that which he hath." It has always been much easier to make money (or stop losing it) if you already have lots of it.
M
M
Unfortunately, that's true. It's often possible to avoid paying much, or indeed anything at all, in tax but it's so expensive to do, it isn't worth it for most people.Meridian said:
Having said that, governments do, to an extent, only have themselves to blame, because they have, in the past, tried to milk the wealthy to gross extents. For instance, in the late 60%, a combination of tax rates on investment income led to an effective rate of more than 136% on investment income over £8,000. This was a combination of income tax, supertax and the "special charge".
It is precisely that kind of Labour-inspired penal tax rates, designed to effect some kind of social change, that caused people to start seriously exploiting tax loopholes ..... and loopholes which, I would point out, are entirely legal, if a tad crafty.
So, you could argue that rich people exploiting tax loopholes in avoidance schemes is the fault of incompetent legislators, who created the loopholes in the first place.
