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promote eu poker rooms, get them to pay directly into your player acc. cash out to a debit card.It comes out as a “refund”. some old bossmedia skins used to do this but shhhhhh
enjoy.
[edit: this assumes u are in .eu LDO]
You need to be creative (within the law) with your expenses. Plenty of different things that the ‘big boys’ do here in the UK. One would be to purchase sites/ domains or such like to reduce your profit in any given year (i.e. ‘reinvest’ enough so that you aren’t in the upper bracket). In future years, these are then sold off as ‘assets’, using the Capital Gains Tax alloawances (£10k a year), with a fixed rate of taxation of 18% thereafter. It’s rather complicated to make sure that you set up things correctly, and not something I’ve done myself.
Being paid into player accounts means that withdrawals might look like gambling ‘winnings’ (hence tax free) – but this is technically tax evasion, and would be treated as such. I presume you’re more interested in tax avoidance (legal). Do you work from home? Make sure you’re billing yourself a portion of bills (mortgage interest/rent/council tax/heating etc) for the space you use. Lets say you have a study at home that you use for work. You can declare that you’re using that 70% of the time for work purposes. Lets say you have 6 rooms in your house (exclude bathroom and kitchen), you can then write off 70% of 1/6th of your bills. Just as a small aside, never declare 100% usage as a workspace as this can cause complications. Firslty, you’d technically be liable for business rates (and this might invalidate your mortgage). Secondly, if you’re ever investigated by Inland Revenue and they find you’ve been using the study for personal use (i.e. photos/ music on computer give it away) then you’re in trouble for writing off expenses that you shouldn’t have…hence most people stick to around 70%.
You can always make capital purchases that are related to the business, as these expenses are now written off 100% in the first year. i.e.a computer purchase of £1,000 is written off as an expense against your profit. There are obvious things like pension contributions too (got a SIPP?).
Just be careful as as a UK resident is liable to pay tax on the money wherever it has come from. Evasion and avoidance are two different things…and with enough planning anything can be reduced to the lower tax bracket.
themac
We use to think that avoiding the tax was a good thing but it is hard to buy a big house with small income :)We declare all the income in the business ,the business bought us nice cars last year and we also have been making good money now that will hopefully pay us a good pension when we retire .If you have kids still living at home you can also pay them dividends and they will be taxed at a lower rate.
Thanks for the reply themacster.
Yes we are looking at our business interest and best legal options.
In your opinion would it be worth leaving the UK for a low tax state like Gibralta, Monaco etc?Or best to stay in the UK and work with the loopholes.
Well, people do make those moves for tax purposes, but I don’t think it’s something I’d do. Maybe that’d be different if I found myself in the new 50% tax band, but my quality of life/friends/family etc all play too much of a role for me to move for purely economic reasons.
I think that is something that everyone would have to decide for themselves, and every situation would be different. Personally I think there are more than enough legal routes to mimimise tax bills, and good options to plan for the future using tax efficient savings/ pensions etc. That may all change, as well all know that the tax is only going to go one way (however much any of the politicians deny it). But that’s all the more reason for sheltering as much from the tax man now!
If you were to ask me if I’d emmigrate if Brown stays in power then my answer would probably be very different…I just don’t think I can cope with another 5 years of the man. Still, hopefully in under two months he’ll be gone :cheers:
themac
I agree I would never move to escape paying taxes.My parents paid taxes all their lives , I do not think they enjoyed it either but they are honest people who slept at night.I live in Canada where the corporate taxes are reasonable.the personal taxes are :
* 15% on the first $40,726 of taxable income, +
* 22% on the next $40,726 of taxable income (on the portion of taxable income between $40,726 and $81,452), +
* 26% on the next $44,812 of taxable income (on the portion of taxable income between $81,452 and $126,264), +
* 29% of taxable income over $126,264.So as you see we are nowhere near your tax rates.
Judy
That’s almost tax free Judy …
Our corporate tax rate down here is a flat 30% …
Personal taxes :
For the first 14,000.00 — 13%
14,000.00 to 40,000.00 – 21%
40,000.00 to 70,000.00 – 33%
70,000.00 and above — 38%Not surprisingly, most small business people seem to earn almost exactly $70,000 a year a present – and are waiting for that top rate to drop before drawing more annually.
:rollover:I know most would laugh at this, but my dad says to me every year when I complain about how much tax I had to pay:
“If you’re paying tax, that means you’re making money, so stop complaining”
I suppose he is right.. Doesn’t mean I don’t try to claim as much as possible as a tax write off though. I’m pretty sure our personal taxes are close to, or just a little higher than New Zealand..
Edit:
I double checked and it seems ours a pretty high (especially for non residents):
Residents:Taxable income Tax on this income $1 – $6,000 Nil $6,001 – $35,000 15c for each $1 over $6,000 $35,001 – $80,000 $4,350 plus 30c for each $1 over $35,000 $80,001 – $180,000 $17,850 plus 38c for each $1 over $80,000 $180,001 and over $55,850 plus 45c for each $1 over $180,000 Non Residents:
Taxable income Tax on this income $0 – $35,000 29c for each $1 $35,001 – $80,000 $10,150 plus 30c for each $1 over $35,000 $80,001 – $180,000 $23,650 plus 38c for each $1 over $80,000 $180,001 and over $61,650 plus 45c for each $1 over $180,000 The alternative to not paying taxes is that you get away with it for a while then get audited.Not only will you have to pay the taxes but interest and penalty plus possible jail time.
I have a friend who got audited and they only had to pay taxes on $20,000 -$30,000 a year but they got hit with a bill for 5 years which was over $43,000 plus interest ,this evasion of taxes made them go bankrupt.He was a framer who got paid flat contractor rates and revenue Canada caught up to him when the company he worked for claimed the GST they paid him.The easiest way to take the sting out of taxes is to earn more money
* 15% on the first $40,726 of taxable income, +
* 22% on the next $40,726 of taxable income (on the portion of taxable income between $40,726 and $81,452), +
* 26% on the next $44,812 of taxable income (on the portion of taxable income between $81,452 and $126,264), +
* 29% of taxable income over $126,264.Are only the federal taxes as quoted above.
In BC we pay provincial tax of 50% of the federal tax so the real tax rates are
22.5%
33%
39%
43.5%
Would be about the same across Canada in all provinces and territories.If you live anywhere in the world excluding the USA the best way to avoid taxes is to become a nonresident. This also applies to the UK.
Move to a tax haven, to do this you must cancel your health care coverage, not renew your drivers license, sell everything in your home country including house and car, make sure you have no memberships, stay out of your home country for over 6 months a year. It’s actually really easy for UK citizens to do.
This is the only way to completely avoid taxes. Yes you can hide the money offshore but its pretty pointless, as besides spending money you cant use it to buy cars, houses, etc
Some options:
Vanuatu
Cook Islands
Bahamas
Turks and Caicos
Cayman Islands
AnguillaSome people mentioned other tax havens earlier but the above are the only ones with true zero taxes, and that means no more paying an accountant or annoying paperwork.
Some of those like the bahamas still have property tax, but most use a higher import tax to make up revenue. 20% import tax is probably the norm, but this is different as a sales tax or GST… as its only applied to products and not services.
You open a bank account outside UK. receive commission to this bank account. get an ATM card from this bank. withdrew bank note cash in UK.
That’s tax evasion though. If you get caught, you’ll find yourself with massive fines and possibly a prison sentence.
HMRC know about these sorts of goings on, and they monitor for it. Remember most countries have reciprocal agreements so they’ll know (eventually) if you have bank accounts abroad. Cash withdrawals from the account are logged – so they’ll have every shred of evidence that they’d need to prosecute. To be honest, it’s even worse than being paid cash in hand, as there is a massive paper trail left behind.
It might take some time for it to catch up with you, but if it does then you’re done for. Is it really worth spending your life looking over your shoulder? That’s my opinion on it anyway…as I said earlier, people really need to understand the difference betweentax avoidance (completely within the law) and tax evasion (illegal).
The best thing to do is just pay them, you’ll sleep well at night knowing you won’t be going to prison or paying a ton of money in interest and penalties.
Makes me ill that i could have bought a new masseratti with the checks i wrote for taxes, and still would have had money left but it beats sitting in prison.
Im afraid that all my deductions including my health savings account will soon be wiped off with the new US tax laws, and the emmiant VAT tax in the US will hurt as well.
Taxes suck, prison is worse.
