I didn't, its common for short term contract work just to lump it in your overall earnings and pay tax on it in the UK at the end of the year.
I have known colleagues that don't pay much tax, they have it paid into Jersey offshore accounts and never bring it into the UK, they claim for the first 38K so as not to pay the 40% tax.
The money is earned outside the UK never enters the UK and pays Jersey tax on the interest earned.
A nice little holiday to France via Jersey once a year.;)
Its not strictly legal I suppose but its the Govs fault for charging way too much tax in the first place.
The legal way to avoid excessive tax is having a Ltd Company and paying yourself and wife 38K each and take the rest in dividends.
the last bit is completely illegal. you can't pay your wife 38K for no work. false invoicing. generally fraud. you could make her an owner of the company and pay dividends to her, or pay her handsomely for doing your books. but incorrectly structuring a ltd company for disguised employment is tax evasion not avoidance. though it does happen a lot.
the last bit is completely illegal. you can't pay your wife 38K for no work. false invoicing. generally fraud. you could make her an owner of the company and pay dividends to her, or pay her handsomely for doing your books. but incorrectly structuring a ltd company for disguised employment is tax evasion not avoidance. though it does happen a lot.
I wonder how many cases of that HMRC win? I'd say not a lot.
I didn't, its common for short term contract work just to lump it in your overall earnings and pay tax on it in the UK at the end of the year.
I have known colleagues that don't pay much tax, they have it paid into Jersey offshore accounts and never bring it into the UK, they claim for the first 38K so as not to pay the 40% tax.
The money is earned outside the UK never enters the UK and pays Jersey tax on the interest earned.
A nice little holiday to France via Jersey once a year.;)
Its not strictly legal I suppose but its the Govs fault for charging way too much tax in the first place.
The legal way to avoid excessive tax is having a Ltd Company and paying yourself and wife 38K each and take the rest in dividends.
I thought the UK govt taxes worldwide income and so all their income paid in the Jersey income should be taxed. Also what's the point of earning money if you can't bring it back to the UK?
I thought the UK govt taxes worldwide income and so all their income paid in the Jersey income should be taxed. Also what's the point of earning money if you can't bring it back to the UK?
the US is the only major government to tax worldwide income.
the US is the only major government to tax worldwide income.
UK residents are taxable on their worldwide income but non domiciled individuals may be able to claim to be taxable only on a remittance basis whereby they are only taxed on their foreign income if it is remitted to the UK.
Do UK based athletes get a reduction in the tax they pay on their sponsorship deals for the time they are competing overseas?
I suspect they don't.
They get a reduction in the tax they pay on their sponsorship deals for tax that they suffer on that income overseas....as indeed most overseas athletes will be given tax relief in their territory of residence for the UK tax that they pay on their sponsorship income....not much use to someone living in Monaco though
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the last bit is completely illegal. you can't pay your wife 38K for no work. false invoicing. generally fraud. you could make her an owner of the company and pay dividends to her, or pay her handsomely for doing your books. but incorrectly structuring a ltd company for disguised employment is tax evasion not avoidance. though it does happen a lot.
I wonder how many cases of that HMRC win? I'd say not a lot.
after you have a contract you can go to the revenue to ask their view wrt IR35. i think most people do this.
like with jimmy carr's 'loans' it is pretty clear when something is disguised employment. to anyone who is not an accountant.
who knows.
and claim expenses on that, travel, food, flat screen TVs,
Duck Houses and Kit Kat bars.
Judging by what our MPs are still claiming (£5.1m for 2 month period of June-July 2011) he could make a healthy profit.:)
I thought the UK govt taxes worldwide income and so all their income paid in the Jersey income should be taxed. Also what's the point of earning money if you can't bring it back to the UK?
the US is the only major government to tax worldwide income.
UK residents are taxable on their worldwide income but non domiciled individuals may be able to claim to be taxable only on a remittance basis whereby they are only taxed on their foreign income if it is remitted to the UK.
What natalian said.
Only non-doms can escape this.
I suspect they don't.
They get a reduction in the tax they pay on their sponsorship deals for tax that they suffer on that income overseas....as indeed most overseas athletes will be given tax relief in their territory of residence for the UK tax that they pay on their sponsorship income....not much use to someone living in Monaco though