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Wanderers Ways. Neil Thompson 1961-2021

These Ere Tax Scams


DomRepWanderer

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One is preventing the money that OUGHT to be in the coffers from going in the pot. One is taking out of the pot which OUGHT not to be going out.

 

The benefit cheat are often the poorest in society, the tax avoiders often the richest. I know which I'd be throwing most money at in order to prevent the pot diminishing but I'm not sure the Government would throw their money at the same end of society.

It’s a popular misconception that we employ more benefit fraud inspectors than tax inspectors. In fact we employ thousands more tax inspectors than we do benefit fraud inspectors.

 

It’s another huge lie by the left to make folk think the system is rigged against the lower end of society when in reality we live in a system that’s as fair as anywhere else on the planet

 

A link with data FYI...

 

http://www.politics.co.uk/blogs/2016/04/13/pmqs-factcheck-does-the-dwp-employ-ten-times-as-many-fraud-i

Edited by birch-chorley
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those who are squeaky clean though, they have valid moans when it comes to these tax loopholes

 

I've always been a PAYE tax payer. Never had a chance to avoid paying tax when it's due. I don't think in 40 years of working I've ever had a R after my tax amount on my wage slip. I live in hope though.

 

Would I try and pay less tax if that option was available to me? Hell yes!

 

Do I bemoan the millionaires when they try to pay less? Hell yes again!

 

The thing is, if I avoided or evaded the tax man it'd be 20% of fuck all. These multi million pound individuals or corporations are avoiding 40% of a hell of a lot.

 

Regarding overseas earnings, my plan would be that if you earn money abroad you'd pay their taxes, if you earn it here you'd pay our taxes. What we have at the minute is UK money made from UK purchases being taxed at overseas rates and our govt. seeing none of it. That can't be fair.

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Also remember those "Tax loopholes" as you call them, may net big company's millions but also stop small businesses going to the wall, and that is the problem they have with changing the tax rules , you may get a bit more money out say the likes of BP but could force 100's  small company's out of business , its like a pyramid BP at he top and at the bottom 100' of not 1000's of small family run company's

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Pensions are different though. You'll pay income tax on it later on if your pension is large enough.

 

Everyone should pay income tax once government allowances are accounted for. As stated elsewhere close the 'legal' loopholes that are clearly allowing folk to avoid paying it.

I save at 40% relief and plan to release at 20% so i do gain but i do get your point. I believe Mr Hammond will be closing that advantage for higher rate tax payers later this month
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People seem to have an idea that there is an army of self employed sole traders or small businesses that are basically rolling in money and paying no tax.

 

I know that is why I started to doing it but it really is nothing like that. Just lots of red tape and tax bills ok if be VAT or Corp Tax but the tax is still there.

Anyone who thinks tax avoidance or minimising tax has anything to do with paying money into a pension is totally missing the point. These days everyone pays into a pension and the tax breaks work for everyone.

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I save at 40% relief and plan to release at 20% so i do gain but i do get your point. I believe Mr Hammond will be closing that advantage for higher rate tax payers later this month

No chance he closes that one. They need more people to save more as value if state pension will start to drop.

 

Also if you mean your company pays it in then it the 19% Corp Tax that is being saved.

Edited by Ani
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People seem to have an idea that there is an army of self employed sole traders or small businesses that are basically rolling in money and paying no tax.

 

I know that is why I started to doing it but it really is nothing like that. Just lots of red tape and tax bills ok if be VAT or Corp Tax but the tax is still there.

Anyone who thinks tax avoidance or minimising tax has anything to do with paying money into a pension is totally missing the point. These days everyone pays into a pension and the tax breaks work for everyone.

Not an army but a huge number all the same

 

In value terms the ONS data I’ve seen shows a bigger tax gap through illegal tax evasion than it does through these loopholes, so in real terms it’s a bigger problem, yet public opinion seems solely focussed on 1 side of the coin

 

I work for a big corporate and it’s the job of our tax team to be as efficient as possible to maximise the profits that go to our shareholders, as long as it’s all legal and above board of course

 

Most of us would do the same if it was our own company

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Not an army but a huge number all the same

 

In value terms the ONS data I’ve seen shows a bigger tax gap through illegal tax evasion than it does through these loopholes, so in real terms it’s a bigger problem, yet public opinion seems solely focussed on 1 side of the coin

 

I work for a big corporate and it’s the job of our tax team to be as efficient as possible to maximise the profits that go to our shareholders, as long as it’s all legal and above board of course

 

Most of us would do the same if it was our own company

There could be I imagine be a dig difference between sole traders who get paid in cash than those who take all payments through the bank as I do. Edited by Ani
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I save at 40% relief and plan to release at 20% so i do gain but i do get your point. I believe Mr Hammond will be closing that advantage for higher rate tax payers later this month

You tax dodger you! :)

 

How does it work with lump sums on retirement; are they taxable, and if they are, would you pay the forty percent if it was large enough?

 

Any road, I reckon your forty percent relief and twenty percent release is fair enough. Larger pensions mean more money for older folk to spend, with vat at 20% they're still getting some back and presumably there'd be some "benefits" you wouldn't be entitled to either.

Either way enjoy it!

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You tax dodger you! :)

 

How does it work with lump sums on retirement; are they taxable, and if they are, would you pay the forty percent if it was large enough?

 

Any road, I reckon your forty percent relief and twenty percent release is fair enough. Larger pensions mean more money for older folk to spend, with vat at 20% they're still getting some back and presumably there'd be some "benefits" you wouldn't be entitled to either.

Either way enjoy it!

You can take a lump sum of the value currently 25% tax free the rest is taxable unless you reinvest into an annuity. The annuity then pays an income which is subject to usual tax rules so about £10 k per annum tax free than normal rate up to £44k and high rate on the rest.

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You tax dodger you! :)

 

How does it work with lump sums on retirement; are they taxable, and if they are, would you pay the forty percent if it was large enough?

 

Any road, I reckon your forty percent relief and twenty percent release is fair enough. Larger pensions mean more money for older folk to spend, with vat at 20% they're still getting some back and presumably there'd be some "benefits" you wouldn't be entitled to either.

Either way enjoy it!

I feel like the unwashed now ????

25% of your pot is tax free and you have a choice of a guaranteed annuity or the more flexible option of taking what you need but you will pay tax at the marginal rate that applies to your income that year. I plan to take the 25% straight away and leave the residual in the pot and let it grow taking out monies up to the 40% threshold should I need it.

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I feel like the unwashed now

25% of your pot is tax free and you have a choice of a guaranteed annuity or the more flexible option of taking what you need but you will pay tax at the marginal rate that applies to your income that year. I plan to take the 25% straight away and leave the residual in the pot and let it grow taking out monies up to the 40% threshold should I need it.

I think if you reinvest the whole lot you can keep your tax free allowance.

 

So say you have £400k. You invest it all and you are entitled to £100 k tax free but you can draw that down gradually so you get your tax free allowance every year then you gradually drawdown your tax free bit.

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I think if you reinvest the whole lot you can keep your tax free allowance.

 

So say you have £400k. You invest it all and you are entitled to £100 k tax free but you can draw that down gradually so you get your tax free allowance every year then you gradually drawdown your tax free bit.

I have income from elsewhere so not quite the same for me but my colleague at work is using that method I think. There is a lot more flexibility around pensions these days thank goodness
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I don't think you realise actually hard it is to hide £50,000 as a small business.

 

We've had the discussion a million times before but it's not the free for all you seem to think it is.

 

You can't just not pay tax. If it was all that simple the whole world would be a self employed plumber.

 

Exactly. None of our clients ever pay us in cash. So everything gets declared. Nowhere to hide. The odd loophole of paying family members in dividends is legit and above board (as far as I've always been informed). Pushing a few things through expenses is quite minimal. Its peanuts.

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Exactly. None of our clients ever pay us in cash. So everything gets declared. Nowhere to hide. The odd loophole of paying family members in dividends is legit and above board (as far as I've always been informed). Pushing a few things through expenses is quite minimal. Its peanuts.

Peanuts indeed but added up across 3m+ SME’s in this country it drives a bigger tax gap for the treasury than a few dozen big corporates avoiding tax, so technically it’s a bigger issue. Yet the focus is on one area constantly whilst the other area doesn’t get a mention

 

As far as I am aware non of these big companies are breaking the law, they are playing by the rules to be as tax efficient as possible. Just like we would all do with our own personal finances or if instead we ran a business

 

I don’t get the witch hunt against big business, it’s relentless, yet millions of us rely on them to support ourselves and our families

Edited by birch-chorley
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