How to not pay Tax in the UK?

Discussion in 'Business & Tax Advice' started by Ghoast, Feb 4, 2011.

  1. Ghoast

    Ghoast Power Member

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    Hi,

    If you are creating your own income (Self-Employed) would the following set up work to avoid tax and still live in the UK?:

    Set up an IBC(International Business Company) in a country where there is no income/business tax - like the bahamas or somewhere in the Caribbean.

    Set it up so that all the money you are making is paid directly to a bank account set up in this IBC's name.

    Then have it so everything that you need to pay for: rent, mortgage, food whatever is paid out of the IBC.

    Then you pay yourself a salary from the IBC of under 10,000 GBP a year so you are under the tax bracket and don't legally have to pay tax..

    Then it would be the business that is earning the money and not you - you would only be being paid an amount that isn't enough to be taxed

    This is what I'm thinking of doing. Would it work and is it legit?

    Thanks in advance!
     
  2. morbid_reality

    morbid_reality Newbie

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    Nice thought. I'll drop a similar question...

    I'm an E.U. citizen and plan to move in UK.
    In case I run an online business, do I have to pay tax in UK, or it depends on the origin of the bank account?
     
  3. oxonbeef

    oxonbeef BANNED BANNED

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    Last edited: Feb 4, 2011
  4. stressfree

    stressfree Senior Member

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    Man....you think the Wizz kids ion the City haven't already tried this and 100X more complicated....It's tax evasion. Try it...maybe you'l lbe lucky for a few years..maybe not. If it is just a few K..is it worth it? If it's a lot then why not move to a tax heaven? Andorra/Switzerland. Isle of man and Russia are low tax places!

    Any income whilst you are a resident of the UK is taxable no matter where you park it. If it was thast easy every self employed person would be doing it. Seek leagal advice....
     
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  5. stressfree

    stressfree Senior Member

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  6. oxonbeef

    oxonbeef BANNED BANNED

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    Benefits are a taxable income too :(
     
  7. seowizards

    seowizards Junior Member

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  8. harvald

    harvald Newbie

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    I would go careful. The govt are cracking down on tax evasion. Know how you feel though. After finding out that piece of scum who burned the poppies was getting benefits I felt like stopping all my tax payments
     
  9. ooodaveb

    ooodaveb Junior Member

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    Most companies run on 5-10% profit margin, so if you make 100K it would not be crazy to pay taxes on only 10% of that. You should "outsource" the work for 90K and your income is only 10K, a 10% profit margin which is normal and healthy in any industry. Like seowizards said earlier you can oursource to yourself.

    Also make sure you contribute maximum you can into retirement, health, education, "business meetings in hawaii" etc so this can be deducted from your taxable income.
     
  10. stressfree

    stressfree Senior Member

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  11. seowizards

    seowizards Junior Member

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    You don't have to be carefull, you just have to play the system correctly, play that right and you'll be fine.

    there are thousands of tax loops exactly the one i mentioned, it's just knowing them to correctly use them.

    takes a lot of knowledge and using the correct people.

    Many countries are against signing a tax treaty with the UK/USA thus making sure they haven't as such yet.

    Singapore is currently the main one rejecting Uk's tax treaty deal. but... it's not about hiding money it's about making sure you don't bring it back in the UK by certain means. by simply paying to your UK account it's classed as liable for income tax and not corperation tax that usual UK LTD companies have to also pay.


    Tax system is complicated, but know the rules and can easily be a game won.
     
  12. stressfree

    stressfree Senior Member

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    you know for sure? So how do you get it back into the UK without paying tax? Cash via card/ Western Uniion? Money Gram.....absolutley poinltess being stashed offshore if you cannot touch it...
     
  13. ourfella

    ourfella Junior Member

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    Buy a flat in Jersey (tax haven) Set up a Company/bank account in Jersey

    Buy a property in UK were ever you live and put down fake tennant

    done?
     
  14. seowizards

    seowizards Junior Member

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    Like i mentioned, in my previous post, while also having a offshore business account, you open a personal offshore account to which the account will have a normal credit or debit card, from which you can use anywhere in the world.

    this is usually a mastercard or visa, thus meaning your able to use the funds without bringing it offically into a UK bank account, thus meaning not having to pay UK income tax. as the funds will be based offshore.

    Believe me, i do this myself all above board and legal, as i said above it's a game you play with "tax" you just need to know the rules to win!




     
  15. social engineer

    social engineer Regular Member

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    i thought jersey had tax treaties with the uk?
     
  16. itmark

    itmark Junior Member

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    You have to be very careful or you will end in problems. The only way to avoid taxes are if you dont make any money.
    :)
    So how do I do that? A trust is the answer and the trust can own the offshore company also dont have your name on anyting. This is the only way you can be sure not to get f.... by the tax guys.

    It is a complicated setup but can be done. Where people go wrong is having your name on the bank account that is big nono.
     
  17. seowizards

    seowizards Junior Member

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    Thats depending on which country your from or reside.

    HMRC uk's tax goverment, are actively aware of my offshore accounts, i don't personally hide anything, although they do not know who owns the offshore business.

    it's a complicated and timely method of saving money but when it saves 37% of my money earned per month, it's all worth it.





     
  18. florflor

    florflor Senior Member

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    There is a lot of misinformation in this thread. Of course, tax treatment is all down to opinion. What you can say is this:

    It has nothing to do with keeping the money out of the UK. UK is not one of those countries where money is only taxed when it comes into the country.

    Also, loopholes or unique structures don't mean anything because there is something called anti-avoidance legislation. If it looks like an elaborate scheme to avoid tax then it can be deemed avoidance by HMRC.

    Also, these days treaties don't even mean anything. People who work at anywhere along the chain are prepared to sell your info. This is highly illegal but HMRC is happy to buy stolen data if it means kicking your ass. Because of this, more and more countries are deciding to cooperate and no longer protect the account holders (Lichenstein etc.)

    These days it is impossible to totally cover your tracks. Why? Because due to 9/11 etc., there is something called KYC. Meaning you need to show a passport to open these structures.

    Basically, the best you can do is to try to conceal what you are doing the best that you can. A trust is one method.

    There is no such thing as legally declaring your structure and paying less tax. I mean, you can do this to minimise inheritance tax etc. But to pay less tax on your earnings, any tax advisor who tells you this is bullsh1tting. They are saying it only to get commission out of you. Just ask all the people who had companies in Isle of Man and their "loans" were sold to another company.

    The only way is to conceal. And that means you could get found out some time in the future. Don't believe anyone who tells you a Hong Kong or Seychelles or whever structure will protect you. It's pure opinion, or lies.
     
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  19. truepals_forever

    truepals_forever Jr. VIP Jr. VIP

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    Any recommendations for getting the offshore bank account from?
     
  20. seowizards

    seowizards Junior Member

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