Cyclone Posted August 14, 2011 Share Posted August 14, 2011 Evasion of tax it's already illegal, avoidance is just good sense. How do you propose that you pass a law requiring directors who live elsewhere to pay uk income tax... Link to comment Share on other sites More sharing options...
Cyclone Posted August 14, 2011 Share Posted August 14, 2011 Bob Geldof. A multimillionaire who lives in the home counties, has been an actual resident of England for the last 30 years. But he's registered as domicile in Ireland where he pays a tiny amount of income tax to them on his earnings. I thought we were talking about people earning 150k+, not multi millionaires... Presumably he stays out of the uk for enough time each year to qualify as not resident. How about a loop hole for some one who earns 151k now? Link to comment Share on other sites More sharing options...
I1L2T3 Posted August 14, 2011 Share Posted August 14, 2011 Can you give an example of one of these loop holes? Just one? Shell companies, offshore trusts and companies, offshore accounts etc... etc... etc.. There is a whole industry of accountants who are expert in precisely this kind of thing. For example, diverting certain earnings into shell companies which then pay tax at business rates rather than personal rate. Very common practice in the banking world. Surprise, surprise. Link to comment Share on other sites More sharing options...
muddycoffee Posted August 14, 2011 Share Posted August 14, 2011 I'm not a legal expert, but it seems to me that it may be possible to insist that directors of UK firms must be registered as domicile in UK. Then at least the people who are employing thousands of british people would have a stake in the same country. It might mean that foreign owners are less likely to move call centres to india or close down manufacturing plants in UK in order to protect the American Workforce back near the main headquarters.. Where they may also be running for political office for example. Link to comment Share on other sites More sharing options...
dimbat Posted August 14, 2011 Share Posted August 14, 2011 I thought we were talking about people earning 150k+, not multi millionaires... Presumably he stays out of the uk for enough time each year to qualify as not resident. How about a loop hole for some one who earns 151k now? Not an accountant are you:D, he will only pay 50% on earning over £150 so he will only pay 50% on the £1 Link to comment Share on other sites More sharing options...
I1L2T3 Posted August 14, 2011 Share Posted August 14, 2011 Evasion of tax it's already illegal, avoidance is just good sense. How do you propose that you pass a law requiring directors who live elsewhere to pay uk income tax... FFS here we go. Using legal means to avoid tax probably means the legislation is wrong to begin with if it can lead to people/companies avoiding most of their tax liability. Like I said, loopholes. Link to comment Share on other sites More sharing options...
muddycoffee Posted August 14, 2011 Share Posted August 14, 2011 I thought we were talking about people earning 150k+, not multi millionaires... Presumably he stays out of the uk for enough time each year to qualify as not resident. How about a loop hole for some one who earns 151k now? Ok, People earning in this range can often arrange their affairs so that they can take some of their earnings as pension, shares or property which means that their main income is less on paper. There was one such case in recent news where investment bankers were able to take some of their "compensation" as they call it, in vintage wine stock instead of salary. And there is, or was unil recently, a legal loophole which meant payment in wine did not attract income tax. Another thing which helps directors is dividend payments. I believe you are allowed to regard some proportion of income as dividend which allows you to avoid tax. Another one is trust funds. You can pay money into a trust fund instead of taking it as income. This is how the aristocracy manages to hide their wealth from the public. If you keep your property in a trust, then you can pass the trust on to your children to manage without attracting any change of ownership which means the land registry does not get involved and no inheritance tax is paid. Link to comment Share on other sites More sharing options...
Cyclone Posted August 14, 2011 Share Posted August 14, 2011 Just one? Shell companies, offshore trusts and companies, offshore accounts etc... etc... etc.. There is a whole industry of accountants who are expert in precisely this kind of thing. For example, diverting certain earnings into shell companies which then pay tax at business rates rather than personal rate. Very common practice in the banking world. Surprise, surprise. that's just called being self employed. Do you begrudge tradesmen paying corporation tax as well then? If you're that bothered start a company and go self employed yourself. Link to comment Share on other sites More sharing options...
Cyclone Posted August 14, 2011 Share Posted August 14, 2011 Not an accountant are you:D, he will only pay 50% on earning over £150 so he will only pay 50% on the £1 Not a maths expert are you... 1% on 1000 I'd think. Link to comment Share on other sites More sharing options...
I1L2T3 Posted August 14, 2011 Share Posted August 14, 2011 I thought we were talking about people earning 150k+, not multi millionaires... Presumably he stays out of the uk for enough time each year to qualify as not resident. How about a loop hole for some one who earns 151k now? There are loads of them: maximise use of HMRC-approved share option schemes and pay lower rate CGT on the proceeds wages paid offshore set yourself up as a contractor Domicile overseas - might just be possible on 150k Link to comment Share on other sites More sharing options...
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