# How do people get away with paying so little



## Bashy (Jun 16, 2010)

A friend of mine is self employed basically an oddjobs man cutting peoples grass, doing their house up etc.

He gets paid mostly in cash and as far as the taxman knows he is earning very little but he is taking in far more than he lets on.

How in the hell is he getting away with this? He gets paid mostly in cash but how can he get away with putting it in the bank without the taxman kicking off?


----------



## The-Big-One (Apr 11, 2010)

doesn't deposit the money just buys everything in cash i guess


----------



## Bashy (Jun 16, 2010)

But im sure he is putting it in the bank, he cant go on that way I suppose at some point he will need to buy something big and cash wont be an option


----------



## RFC52 (Jan 4, 2011)

Proof that the money was actually able to be classed as taxable income will be few and far between.


----------



## gycraig (Oct 5, 2008)

i dont see how his deposits are relevant because surely thats classified information ?.

long as he not slamming 5k in at a time im sure bank wouldnt care.

it will backfire tho i work cash in hand and just pay my bill money into bank on the friday. keep "my" money seperate went for a loan and they said i dotn earn enough lol


----------



## johnny_lee (Jun 15, 2011)

.


----------



## Milky (Nov 30, 2008)

Fair fu*k to the bloke l say......

They screw us enough.


----------



## Thunderstruck (Sep 20, 2010)

If he is putting it in the bank and they one day so checks then he may well be in **** as they are allowed to check, best thing is a shoe box hidden in the cupboard :thumb:


----------



## biglbs (Jan 26, 2012)

Bashy said:


> But im sure he is putting it in the bank, he cant go on that way I suppose at some point he will need to buy something big and cash wont be an option


Is it a worry to you?


----------



## Yoshi (Oct 4, 2011)

Or he could set bank account in another country not saying which but they are 100% safe and won't give details out to 3rd parties then you can launder the money, once you can get money into a bank account opens a whole new world


----------



## guvnor82 (Oct 23, 2011)

can't say he's bit of gambler and who 2 say its not his winning from the horses


----------



## Guest (May 21, 2012)

I'm trying to think of ways to avoid tax on my new business.

I got an offshore merchant account to accept cards over the phone, i'm wondering if I can transfer from there to another offshore account, then just transfer half back into the UK, and only tax half my income?

if i open a different offshore account for the other half I can get a debit card and spend that freely?

fock knows it's just an idea, can't stand the thought of handing over so much money to the cnuts


----------



## Bashy (Jun 16, 2010)

Ive recently gone self employed and its infuriating that he is getting away with it, i know none of these tricks so il end up putting my cash in the bank


----------



## biglbs (Jan 26, 2012)

Milky said:


> Fair fu*k to the bloke l say......
> 
> They screw us enough.


Why did johnny lee like this post i wonder?


----------



## Guest (May 21, 2012)

MacUK said:


> Or he could set bank account in another country not saying which but they are 100% safe and won't give details out to 3rd parties then you can launder the money, once you can get money into a bank account opens a whole new world


unless he's talking thousands a week how the hells he going to get it to the offshore account? bit expensive to fly to switzerland every time he mows a lawn


----------



## Bashy (Jun 16, 2010)

biglbs said:


> Is it a worry to you?


Doesnt worry me but im now self employed and deal only in cash.

Jonny Lee should have some answers here!


----------



## biglbs (Jan 26, 2012)

johnny_lee said:


> .


Fair point,that much a?


----------



## Milky (Nov 30, 2008)

I paid about £150 grand in taxes in one way or another my last yr of trading and ended up losing everything.

I honestly cant fault any one who screws the bastard for all they can.


----------



## johnny_lee (Jun 15, 2011)

Thunderstruck said:


> If he is putting it in the bank and they one day so checks then he may well be in **** as they are allowed to check, best thing is a shoe box hidden in the cupboard :thumb:


thats how people get robbed no one leaves large amounts of money away in there houses anymore few weeks ago not far from here a drug dealer had 350 thousand pounds stolen of him cos he put pictures of himself in a bathtub full of it on facebook lmfao if he was any good he would of had that money launderd away safe and properly


----------



## DJay (Feb 6, 2011)

loads of people do it, they basically pay for everything in cash. not everything payed into the bank has to be declared as income. people also do stuff like if they buy a car they say its a business inexpenses so they can claim the tax back etc, tax back on fuel. tbh its almost worth starting your own business just so you can take advantage of all the 'tax breaks'

people will keep abusing the system untill the loop holes are fixed. people dealing in cash and not paying tax was a major part of the downfall of Greece's economy


----------



## biglbs (Jan 26, 2012)

Bashy said:


> Doesnt worry me but im now self employed and deal only in cash.
> 
> Jonny Lee should have some answers here!


The master!lol


----------



## Guest (May 21, 2012)

Milky said:


> I paid about £150 grand in taxes in one way or another my last yr of trading and ended up losing everything.
> 
> I honestly cant fault any one who screws the bastard for all they can.


Insane isn't it. Imagine how much better off you'd be if you'd kept even half that.


----------



## jazzmc (Oct 14, 2011)

If hes not claiming any Benefits then good luck to the guy,If the Worlds richest Companies can dodge paying there taxes then its every man for themselves


----------



## Milky (Nov 30, 2008)

FrankDangerMaus said:


> Insane isn't it. Imagine how much better off you'd be if you'd kept even half that.


Did EVERYTHING by the book mate, where the fu*k did it get me....


----------



## Yoshi (Oct 4, 2011)

FrankDangerMaus said:


> unless he's talking thousands a week how the hells he going to get it to the offshore account? bit expensive to fly to switzerland every time he mows a lawn


You go into your local bank with your different bank acc and sort code and pay it it then gets wired to your bank in another country then you can launder


----------



## biglbs (Jan 26, 2012)

johnny_lee said:


> thats how people get robbed no one leaves large amounts of money away in there houses anymore few weeks ago not far from here a drug dealer had 350 thousand pounds stolen of him cos he put pictures of himself in a bathtub full of it on facebook lmfao if he was any good he would of had that money launderd away safe and properly


If he was any good,you would'nt even know he was adealer,but what ya gonna do with all that dolla dude?


----------



## Bashy (Jun 16, 2010)

Ive no idea how people could get away with it.

I mean if I tell the tax man I earn a certain amount and my bank account reflects that but ive got more than im telling him in cash im screwed when I want to buy something big arent I


----------



## Guest (May 21, 2012)

MacUK said:


> You go into your local bank with your different bank acc and sort code and pay it it then gets wired to your bank in another country then you can launder


If you're putting money in your account then wiring it abroad that's no different to just depositing it in your account mate


----------



## jake87 (May 7, 2010)

you can pay bills(inc credit card afaik) with cash. also like been said above, theres no proof its taxable income and he could say turn around and say hes had a garage sale


----------



## luther1 (Jul 31, 2011)

You don't have to pay any cash into your account if you don't want to,but as long as you declare you had some then thats ok


----------



## johnny_lee (Jun 15, 2011)

biglbs said:


> If he was any good,you would'nt even know he was adealer,but what ya gonna do with all that dolla dude?


money makes people do stuped things like taking pictures of yourself in a bath of money lmfao wasnt me tho i dont have facebook so cant see anythink on ther but i agree with robbing drug dealers of there stuff and money cos its as much everyone elses than it is there lol


----------



## Yoshi (Oct 4, 2011)

....

Right say mr smith gets 10k a week from drug dealing hmm what does he do,

Goes to make and puts in different country where that bank will tell police nothing do tax free and no questions asked once its in that acc yiu can open bussivess in another country and pay your wage from that acc to your normal bank.. Bang money is laundered


----------



## Ballin (Aug 24, 2011)

The way things are going the only fool proof way to dodge tax is going into a barter system. Basically you cut someone's grass and they wash your car back.

There are numerous places you can post and offer services and the tax man can do FA about it!!!!


----------



## luther1 (Jul 31, 2011)

MacUK said:


> ....
> 
> Right say mr smith gets 10k a week from drug dealing hmm what does he do,
> 
> Goes to make and puts in different country where that bank will tell police nothing do tax free and no questions asked once its in that acc yiu can open bussivess in another country and pay your wage from that acc to your normal bank.. Bang money is laundered


They caught on to that old game years ago


----------



## Milky (Nov 30, 2008)

They have you by the balls, they check out your house, your car, your lifstyle etc then ask how you fund it with your income.

You put over £5000 in the bank and they are obliged to inform HMRC, you draw money out they ask what its for...

All you can say its its winnings from gambling.


----------



## johnny_lee (Jun 15, 2011)

**** the taxman goverment has enough money they choose to give it away to countries like pakistan or africa when this country is in debt there own fault should sort it out them sevles not the peoples hard ernt cash


----------



## Guest (May 21, 2012)

MacUK said:


> ....
> 
> Right say mr smith gets 10k a week from drug dealing hmm what does he do,
> 
> Goes to make and puts in different country where that bank will tell police nothing do tax free and no questions asked once its in that acc yiu can open bussivess in another country and pay your wage from that acc to your normal bank.. Bang money is laundered


we're talkin about a bloke who mows lawns not moves planes of coke


----------



## Ballin (Aug 24, 2011)

Having worked in a bank and some geezer opened a KFC to launder cash and still got busted!


----------



## luther1 (Jul 31, 2011)

Milky said:


> They have you by the balls, they check out your house, your car, your lifstyle etc then ask how you fund it with your income.
> 
> You put over £5000 in the bank and they are obliged to inform HMRC, you draw money out they ask what its for...
> 
> All you can say its its winnings from gambling.


Thats about the long and short of it. These idiots don't even declare what their monthly outgoings are. Show on paper that you can afford your lifestyle and any surplus cash is none of their business(as such).


----------



## Yoshi (Oct 4, 2011)

luther1 said:


> They caught on to that old game years ago


Yeah switzerland but after government pressure they stopped doing it but there are other country's


----------



## vduboli (Apr 1, 2011)

Milky said:


> Fair fu*k to the bloke l say......
> 
> They screw us enough.


Yes they do..and we end up paying for the ones who screw 'them'

IMO just pay your own tax and use the benefits that we have in this country or out! I'm fed up of funding other people, I give enough in charity!


----------



## WannaGetHench (Aug 22, 2010)

Bashy said:


> Ive no idea how people could get away with it.
> 
> I mean if I tell the tax man I earn a certain amount and my bank account reflects that but ive got more than im telling him in cash im screwed when I want to buy something big arent I


you dont make sense mate, explain it again>


----------



## Yoshi (Oct 4, 2011)

Ballin said:


> Having worked in a bank and some geezer opened a KFC to launder cash and still got busted!


Yeah because you need paperwork to match but in another country which has little laws there's no problem


----------



## luther1 (Jul 31, 2011)

MacUK said:


> Yeah switzerland but after government pressure they stopped doing it but there are other country's


If you get a big tax inspection the first thing they ask for is your passport. All the banks talk to each other now and you can forget Jersey and Guernsey,you need to be a resident


----------



## lukeee (Aug 17, 2009)

Hand car washing firms!

Funny how they have sprung up everywhere init :whistling:


----------



## Yoshi (Oct 4, 2011)

luther1 said:


> If you get a big tax inspection the first thing they ask for is your passport. All the banks talk to each other now and you can forget Jersey and Guernsey,you need to be a resident


There are still banks that will tell other parties to do one, trust me


----------



## Milky (Nov 30, 2008)

vduboli said:


> Yes they do..and we end up paying for the ones who screw 'them'
> 
> IMO just pay your own tax and use the benefits that we have in this country or out! I'm fed up of funding other people, I give enough in charity!


As much as l sympathise with your view point, do you HONESTLY believe if everyone paid there way the system would be fairer ?


----------



## Guest (May 21, 2012)

MacUK said:


> There are still banks that will tell other parties to do one, trust me


Yeah but hows he gonna get his £20 for mowing a lawn off shore lol


----------



## husky (Jan 31, 2010)

fairplay to the guy-if we all could get away with a wee fiddle here and there we would-its the guy who grafts his ar$e off only to see a third of his wage being taken off him at the end of the month who ends up getting stroked by the continual higher taxes.


----------



## WannaGetHench (Aug 22, 2010)

lukeee said:


> Hand car washing firms!
> 
> Funny how they have sprung up everywhere init :whistling:


what you mean mate#?


----------



## Milky (Nov 30, 2008)

WannaGetHench said:


> what you mean mate#?


Do you know any of them that take cheques or cards mate ?


----------



## johnny_lee (Jun 15, 2011)

lukeee said:


> Hand car washing firms!
> 
> Funny how they have sprung up everywhere init :whistling:


eastern europeans are hardworking good people had a few work for us they dont expenct much pay but will work like workhorses but they make good money with the car cleaning firms always see them as early as 5 in the morning ready to start and always still there gone 6 0r 7 at night fair play to them


----------



## lukeee (Aug 17, 2009)

WannaGetHench said:


> what you mean mate#?


Well me ol mate, fantastic way to launder money, hence our eastern european friends love to open them up!


----------



## WannaGetHench (Aug 22, 2010)

Milky said:


> Do you know any of them that take cheques or cards mate ?


nope


----------



## Guest (May 21, 2012)

Milky said:


> As much as l sympathise with your view point, do you HONESTLY believe if everyone paid there way the system would be fairer ?


I'm planning to cut every corner I can.

My money is for me not some Afghan family to have a 6 bedroom home in London, or to be given to India, or the EU, or any other bollocks I'd never have agreed to.

It's taken from me with the threat if I don't give it to them they'll take everything I own and put me in prison, seems fair to me.


----------



## Marshan (Aug 27, 2010)

The one thing Ive always heard from wealthy people is that a good accountant is worth his weight in gold.


----------



## jake87 (May 7, 2010)

WannaGetHench said:


> what you mean mate#?


 perfect for money laundering. theres no record of how many cars go through it a day


----------



## Bashy (Jun 16, 2010)

Well for example my what goes in and out of my bank account does reflect my lifestyle but I have more than my lifestyle and bank account would let the taxman know.

But its cash...


----------



## Fatstuff (Mar 2, 2010)

There's loads of ways to scam the taxman - my self employed mates all use the same accountant and they always get massive tax rebates, they don't even bother taking receipts to the guy he just gets loads of tax back for them!!

Safety deposit boxes are what your average 'earner' will use! You only need to go into the offshore account side of things when your earning big and you will have plenty of connections by then to be able to do it unnoticed.


----------



## biglbs (Jan 26, 2012)

I wonder if Hm are checking Ip addresses as we tap?


----------



## Guest (May 21, 2012)

Fatstuff said:


> There's loads of ways to scam the taxman - my self employed mates all use the same accountant and they always get massive tax rebates, they don't even bother taking receipts to the guy he just gets loads of tax back for them!!
> 
> Safety deposit boxes are what your average 'earner' will use! You only need to go into the offshore account side of things when your earning big and you will have plenty of connections by then to be able to do it unnoticed.


My old boss had a safety deposit box somewhere in London, the rozzers opened up every single one in the place nad he got in a lot of heat for having £200k in there.

he owned the investment brokerage we worked in which did 500k a month, and 2 big nightclubs so I think he managed to keep it in the end.


----------



## Milky (Nov 30, 2008)

jake87 said:


> perfect for money laundering. theres no record of how many cars go through it a day


I bet they will start sitting outside counting soon tho..


----------



## Ballin (Aug 24, 2011)

mixerD1 said:


> The one thing Ive always heard from wealthy people is that a good accountant is worth his weight in gold.


LOL nearly qualified and I'm 265lbs!!


----------



## coflex (May 10, 2010)

sounds to me like the OP is just jealous that he doesn't know how to fiddle the taxman. :lol:


----------



## lukeee (Aug 17, 2009)

Milky said:


> I bet they will start sitting outside counting soon tho..


You know mate, only a matter of time!


----------



## luther1 (Jul 31, 2011)

Milky said:


> I bet they will start sitting outside counting soon tho..


Exactly,its what they do at car boot sales.You should even declare ebay earnings to some degree


----------



## Bashy (Jun 16, 2010)

coflex said:


> sounds to me like the OP is just jealous that he doesn't know how to fiddle the taxman. :lol:


Of course I am, id love to know the best way to go around it


----------



## luther1 (Jul 31, 2011)

biglbs said:


> I wonder if Hm are checking Ip addresses as we tap?


A cafe in sunny Southend would suit me! :whistling:


----------



## glenn (Jan 20, 2008)

if this country would keep an eye on where it sends its money and stopped giving the scummy foreign con merchants houses and money for no good reason then i would not mind paying more tax as i should,,,

but as it gives it away like water i take pride in not paying the correct amount of tax,, i work as a ghost a a mates company as the tax man is looking at everything money wise so his beer money is the wages he pays me as it goes in his pocket,,,, so my N I is payed and a tiny bit of tax in my name so i'm free to do S E work and dont have to worry about this..

i know this will get up some peoples noses but if your honest who would pay all there correct tax if they could get away with it~???


----------



## MrBen (Nov 22, 2011)

Every time any bank note is spent it is taxed at the standing VAT rate for that Item and any other applicable duty. EVERY SINGLE TIME. I pay you 20 quid cash you go to the petrol station, they pay the employee, he buys some ****, the newsagent pays the paper boy. EVERY SINGLE TIME. Now anyone who thinks that being paid cash means they avoid paying tax is very mistaken.

If the political elite stopped extorting us and wasting our money on killing babies in far off lands I'd keep my gob shut.

Just because we are born into a system that forces us to work for the benefit of others does not make it fair, just or right.

Now I'm going for a curry. And I'm paying cash.


----------



## Guest (May 21, 2012)

What really irritates me if people like Blair and Livingstone who love high taxes and welfare and spending other peoples money, using tax dodges to get away with paying less tax.

That hypocritical sh*t REALLY p*sses me off


----------



## Fit4life (Sep 16, 2011)

Sounds like a right banker to me......

Lets be honest have you ever thought how much wines and spirits are subsidised at Westminster, well they are and I dont see our MPs telling the tax man that perk do you?

Kaza


----------



## WannaGetHench (Aug 22, 2010)

MrBen said:


> Every time any bank note is spent it is taxed at the standing VAT rate for that Item and any other applicable duty. EVERY SINGLE TIME. I pay you 20 quid cash you go to the petrol station, they pay the employee, he buys some ****, the newsagent pays the paper boy. EVERY SINGLE TIME. Now anyone who thinks that being paid cash means they avoid paying tax is very mistaken.
> 
> If the political elite stopped extorting us and wasting our money on killing babies in far off lands I'd keep my gob shut.
> 
> ...


put it in simpler terms for me mate


----------



## Guest (May 21, 2012)

MrBen said:


> Every time any bank note is spent it is taxed at the standing VAT rate for that Item and any other applicable duty. EVERY SINGLE TIME. I pay you 20 quid cash you go to the petrol station, they pay the employee, he buys some ****, the newsagent pays the paper boy. EVERY SINGLE TIME. Now anyone who thinks that being paid cash means they avoid paying tax is very mistaken.
> 
> If the political elite stopped extorting us and wasting our money on killing babies in far off lands I'd keep my gob shut.
> 
> ...


yeah we're not talkin about zero tax, but if I avoid paying even 10-20% extra tax over what i should pay I'm doing alright. And a lot happier


----------



## Yoshi (Oct 4, 2011)

Big lbs just because someone knows how to do it doesn't mean they do lol. I have a good job no need not to be straight myself but there are ways to get round the system


----------



## Guest (May 21, 2012)

WannaGetHench said:


> put it in simpler terms for me mate


you're taxed to fock and then you die.


----------



## Bashy (Jun 16, 2010)

So does anyone have any advice for me, im a bit concerned at having a cash pile build up


----------



## Ballin (Aug 24, 2011)

True but you have more spending power. Would much rather pay 20% VAT than 31% PAYE and NI


----------



## WannaGetHench (Aug 22, 2010)

no serious i want to know what it means in simpler terms.


----------



## Jay.32 (Dec 12, 2008)

Milky said:


> Fair fu*k to the bloke l say......
> 
> They screw us enough.


my thoughts exactly..... some people spend to much time worrying about other peoples lives, instead of there own


----------



## guvnor82 (Oct 23, 2011)

Bashy said:


> So does anyone have any advice for me, im a bit concerned at having a cash pile build up


ill look after it for you:whistling:


----------



## hotchy (Aug 20, 2009)

What's tax? Lol hes a Gardner... the stuff he doesn't put in will prob pay for his Friday at the pub. We pay tax on way to much. Fuk the taxman


----------



## luther1 (Jul 31, 2011)

36-26 said:


> To be honest you are coming across as a bit of a begrudger, is he not your friend? Don't be so bitter, taxmen don't actually look that hard at everyones bank account to make sure they are paying enough tax. My bet is that if nobody rats him out he'll go unnoticed indefinitely. Fair play to him I say.
> 
> I know a man who is on disability(he had a stroke) they refused to let him back to work(docs said its too dangerous) even though he wanted to work as the money on disability is ****e, so he has worked on the side helping a farmer for 15 years to get extra money to live. No tax man has ever come near him even though he buys a brand new car every year. He doesn't use a bank at all though, doesn't believe in them lol


1. If he's on disability he doesn't buy the car

2. If you pay over £10,000 into the bank,you HAVE to declare where it came from. If you buy a car cash for over that amount and haven't declared it,you WILL get caught.


----------



## Bashy (Jun 16, 2010)

36-26 said:


> To be honest you are coming across as a bit of a begrudger, is he not your friend? Don't be so bitter, taxmen don't actually look that hard at everyones bank account to make sure they are paying enough tax. My bet is that if nobody rats him out he'll go unnoticed indefinitely. Fair play to him I say.
> 
> I know a man who is on disability(he had a stroke) they refused to let him back to work(docs said its too dangerous) even though he wanted to work as the money on disability is ****e, so he has worked on the side helping a farmer for 15 years to get extra money to live. No tax man has ever come near him even though he buys a brand new car every year. He doesn't use a bank at all though, doesn't believe in them lol


I dont begrudge it to him nor am I worrying about his life, im just a bit baffled as to how he gets away with it.

As I said im now self employed and am curious about the subject


----------



## lukeee (Aug 17, 2009)

FrankDangerMaus said:


> What really irritates me if people like Blair and Livingstone who love high taxes and welfare and spending other peoples money, using tax dodges to get away with paying less tax.
> 
> That hypocritical sh*t REALLY p*sses me off


Tbh those two pish me off just by breathing!! But yeah classic champagne socialists mate!


----------



## Ballin (Aug 24, 2011)

Aye Red Ken is Bastard!

Blair has his business registered in the Cayman Islands


----------



## zak007 (Nov 12, 2011)

All add my input

Taxman doesn't come chasing people for pennies they go for the medium/big fish

E.g I have a business say takeaway that does 3k a week

I hire a good accountant who does my books for me and takes care of everything that way I get away with tax and pocket extra

Moral of the story a good accountant gets paid well and takes care of all the dirty work for you

Is the taxman really gonna chas you for you paying taxes but not declaring that extra few hundred a week

Yes is some cases but most of the time no they are usually alerts when you start buying a lot of high value items that do not tie in with your business

I have friends in business and know inside story's and what goes on


----------



## Guest (May 21, 2012)

luther1 said:


> 1. If he's on disability he doesn't buy the car
> 
> 2. If you pay over £10,000 into the bank,you HAVE to declare where it came from. If you buy a car cash for over that amount and haven't declared it,you WILL get caught.


he could deposit 200 a week and never have a word said.

when we moved from the US to the UK my mum transferred the sale of a house and no one ever questioned over £100k in an international transfer!


----------



## luther1 (Jul 31, 2011)

FrankDangerMaus said:


> he could deposit 200 a week and never have a word said.
> 
> when we moved from the US to the UK my mum transferred the sale of a house and no one ever questioned over £100k in an international transfer!


The op said he doesnt have a bank account

A bank to bank transfer is different to paying in cash. If she paid the £100k in ion cash,do you think that would have gone unnoticed?


----------



## zak007 (Nov 12, 2011)

FrankDangerMaus said:


> he could deposit 200 a week and never have a word said.
> 
> when we moved from the US to the UK my mum transferred the sale of a house and no one ever questioned over £100k in an international transfer!


They don't question it

Another example I sold my car 5kk + put it in bank no questions asked

Dads old mate back in the day was given 40k to start a business in cash

Idiot went and put it in the bank

They phoned hrmc investigation happened and money hits sized as he couldn't prove where it came from

You don't know what goes on behind the scenes


----------



## Guest (May 21, 2012)

luther1 said:


> The op said he doesnt have a bank account
> 
> A bank to bank transfer is different to paying in cash. If she paid the £100k in ion cash,do you think that would have gone unnoticed?


ah right

oh no i know it woulda been different with cash im just saying if u get it out the country u could just send it back and once it's in the banking system no one checks it out at all.


----------



## luther1 (Jul 31, 2011)

Rq355 said:


> They don't question it
> 
> Another example I sold my car 5kk + put it in bank no questions asked
> 
> ...


You have to declare over £10,000 in cash,the cashier gives you the paperwork to fill out. A decent mountain bike is £5k


----------



## 36-26 (Jun 30, 2009)

luther1 said:


> 1. If he's on disability he doesn't buy the car
> 
> 2. If you pay over £10,000 into the bank,you HAVE to declare where it came from. If you buy a car cash for over that amount and haven't declared it,you WILL get caught.


Are you trying to contradict me here? My friend is on dissability, he does buy a brand new car every year, he doesn't use a bank. He's doing it for 15 years and nobody bothers him


----------



## luther1 (Jul 31, 2011)

36-26 said:


> Are you trying to contradict me here? My friend is on dissability, he does buy a brand new car every year, he doesn't use a bank. He's doing it for 15 years and nobody bothers him


No i'm not,i didn't realise you were in Ireland,maybe its different over there


----------



## 36-26 (Jun 30, 2009)

luther1 said:


> No i'm not,i didn't realise you were in Ireland,maybe its different over there


It must be. I won 13000 before and put it into my bank account where my wages go and nobody ever asked me anything or made me fill out any paperwork apart from the lodgement docket. My friend trades in his car every year and it costs him between 3-5000 to upgrade. He pays in cash


----------



## Raptor (Feb 16, 2010)

Bashy said:


> A friend of mine is self employed basically an oddjobs man cutting peoples grass, doing their house up etc.
> 
> He gets paid mostly in cash and as far as the taxman knows he is earning very little but he is taking in far more than he lets on.
> 
> How in the hell is he getting away with this? He gets paid mostly in cash but how can he get away with putting it in the bank without the taxman kicking off?


Lol do you really think the tax man is gonna chase "Billy the joiner" or whoever your mate is because an extra 20k goes through his accounts each year? They have much bigger fish to fry, they wouldn't even investigate him without reason, he just wont put the extra in to a business account, could be from anywhere


----------



## luther1 (Jul 31, 2011)

I sold my van last year for £10,200 and had to fill a money laundering declaration form out because it was over £10,000.


----------



## vduboli (Apr 1, 2011)

Milky said:


> As much as l sympathise with your view point, do you HONESTLY believe if everyone paid there way the system would be fairer ?


It's not about being fair! I know I pay my tax and ni every month and when I need to call the police (I wouldn't bother but...) or an ambulance or go to the gp that I have paid for that service. If you don't 'work' or 'earn' you get the same benefits but without having to pay. It's not on, I'd be better better of not working but I do! Like you!

What if everyone stopped working and paying the appropriate costs in terms of tax etc? It wouldn't work!

That's all mate I just think people news to start being honest with themselves!


----------



## Guest (May 21, 2012)

luther1 said:


> I sold my van last year for £10,200 and had to fill a money laundering declaration form out because it was over £10,000.


I'm actually amazed u managed to convince someone to pay 10,200, he must have been the worst haggler in the world


----------



## SATANSEVILTWIN (Feb 22, 2012)

lukeee said:


> Hand car washing firms!
> 
> Funny how they have sprung up everywhere init :whistling:


and they are all run by eastern europeans


----------



## Guest (May 21, 2012)

vduboli said:


> It's not about being fair! I know I pay my tax and ni every month and when I need to call the police (I wouldn't bother but...) or an ambulance or go to the gp that I have paid for that service. If you don't 'work' or 'earn' you get the same benefits but without having to pay. It's not on, I'd be better better of not working but I do! Like you!
> 
> What if everyone stopped working and paying the appropriate costs in terms of tax etc? It wouldn't work!
> 
> That's all mate I just think people news to start being honest with themselves!


You're not in a very high tax bracket are you mate


----------



## SATANSEVILTWIN (Feb 22, 2012)

car auctions use to be a good place to launder cash.now you cant buy a car with anymore than 9k in cash


----------



## luther1 (Jul 31, 2011)

FrankDangerMaus said:


> I'm actually amazed u managed to convince someone to pay 10,200, he must have been the worst haggler in the world


It was up for £11,000 and he flew over from the Alps to buy it and i psycologically wanted more than 10


----------



## luther1 (Jul 31, 2011)

vduboli said:


> It's not about being fair! I know I pay my tax and ni every month and when I need to call the police (I wouldn't bother but...) or an ambulance or go to the gp that I have paid for that service. If you don't 'work' or 'earn' you get the same benefits but without having to pay. It's not on, I'd be better better of not working but I do! Like you!
> 
> What if everyone stopped working and paying the appropriate costs in terms of tax etc? It wouldn't work!
> 
> That's all mate I just think people news to start being honest with themselves!


We should all set an example like the MP's do with their expanses shall we? Where's the difference?


----------



## Bashy (Jun 16, 2010)

Raptor said:


> Lol do you really think the tax man is gonna chase "Billy the joiner" or whoever your mate is because an extra 20k goes through his accounts each year? They have much bigger fish to fry, they wouldn't even investigate him without reason, he just wont put the extra in to a business account, could be from anywhere


Im not sure, I spoke to one of my friends who is an accountant and he said people very rarely get a revenue enquiry unless their lifestly doesnt match their earnings.

Im just a bit wary of putting more into my bank than what im telling the taxman I earn


----------



## cult (Nov 7, 2009)

Bashy said:


> Ive recently gone self employed and its infuriating that he is getting away with it, i know none of these tricks so il end up putting my cash in the bank


Why does it annoy you so much. I honestly love seeing people i know screwing teh goverment because they are doing it to use 1o fold. Id love to live in a fair society but ffs get your head out of teh sand man and stop worrying about what others are doing. I bet your teh type to lift the phone and sink guys like this


----------



## luther1 (Jul 31, 2011)

Bashy said:


> Im not sure, I spoke to one of my friends who is an accountant and he said people very rarely get a revenue enquiry unless their lifestly doesnt match their earnings.
> 
> Im just a bit wary of putting more into my bank than what im telling the taxman I earn


Don't then. That would be incriminating yourself


----------



## essexboy (Sep 7, 2008)

Im 18 months into a tax evasion enquiry, going back 5 years.It has cost me 60k, (thats not a typo) to get my last 5 years of acccounts in a fit state to present to HMRC.I got caught via ebay.They are presently investigating 32000 sellers who are not registered as businesses.Ive learnt a hell of a lot how HMRC work in the last 18 months.

Basically if you get a visit, and you cant justify your lifestyle they will investigate you.If you have the big house and car, but cant prove how its funded,then its deemed, money laudering and proceeds of crime.Whether you are a drug dealer, or a very sucessful paper boy, they will take the lot.

I had a lot of money go through my bank account over 5 years.Luckily I could produce invoices and receipts.Ill have to pay some back tax, and fines, but ill be ok.They dont want to prosecute, they just want paying.If anyone here is in the same situation,FFS make a voluntary disclosure.If anyone needs advice or has had a letter come through the door PM me.

A car dealer mate of mine, was prosecuted last August, for marking cars up for sale in the road.Last week HMRC dropped him the letter.They want 7 years worth of invoices, which he aint got.His wifes income wont justify his 300k house.Hes got a long road, and fees of 60/70k .All he had to do was pay 3/4k a year, and keep HMRC happy.Youve got to give them something.They aint cu.nts, and know all the tricks.just dont giver them reason to take a look at you.

Lastly the really smart criminals buy bars.Its the only way to launder without a paper trail.


----------



## Fatboy80 (Feb 27, 2008)

I'm self employed, I pay my money in, and pay my taxes. My mate is a cabby/window cleaner.He doesn't pay anything in bar the absolute minimum. Used to wind me up, but now I just think fcuk it, worry about my own sh1t. Life's too short to worry about other peoples business!

Can I get a hell yeah?!


----------



## luther1 (Jul 31, 2011)

essexboy said:


> Im 18 months into a tax evasion enquiry, going back 5 years.It has cost me 60k, (thats not a typo) to get my last 5 years of acccounts in a fit state to present to HMRC.I got caught via ebay.They are presently investigating 32000 sellers who are not registered as businesses.Ive learnt a hell of a lot how HMRC work in the last 18 months.
> 
> Basically if you get a visit, and you cant justify your lifestyle they will investigate you.If you have the big house and car, but cant prove how its funded,then its deemed, money laudering and proceeds of crime.Whether you are a drug dealer, or a very sucessful paper boy, they will take the lot.
> 
> ...


Fcuking bummer mate. You can pay an insurance every year now to cover accountants expenses during a tax investigation can't you?


----------



## Bashy (Jun 16, 2010)

cult said:


> Why does it annoy you so much. I honestly love seeing people i know screwing teh goverment because they are doing it to use 1o fold. Id love to live in a fair society but ffs get your head out of teh sand man and stop worrying about what others are doing. I bet your teh type to lift the phone and sink guys like this


Im not explaining myself very well, I only find it infuriating as I cannot see how he is getting away with it. I would love to do what he is doing but ive no idea how he is getting away with it.

Im not annoyed that he is screwing the taxman far from it id just like to know some of these tricks.

People spelling 'THE' in an odd way like 'TEH' is what really infuriates me lol


----------



## vduboli (Apr 1, 2011)

FrankDangerMaus said:


> You're not in a very high tax bracket are you mate


It's not relevant which bracket I am in but if your question is eluding to the fact that I don't understand...I am very comfortable.


----------



## vduboli (Apr 1, 2011)

luther1 said:


> We should all set an example like the MP's do with their expanses shall we? Where's the difference?


All that's going to happen is that the UK is going to get deeper into trouble. The mps are terrible people but we all need to do the best we can, thats all!


----------



## essexboy (Sep 7, 2008)

luther1 said:


> Fcuking bummer mate. You can pay an insurance every year now to cover accountants expenses during a tax investigation can't you?


Didnt know about that, but Im using a specialist tax firm, not accountants.The fees are astronomical.If I didnt have anything, id have just ignored it.What HMRC do though is check to see if you own a house,before they decide to come after you.No point in chasing someone, whos not got f all, and can disappear.If you dont co operate they just slam a charge on your house anyway.


----------



## Guest (May 21, 2012)

vduboli said:


> It's not relevant which bracket I am in but if your question is eluding to the fact that I don't understand...I am very comfortable.


it's easy to feel like you're getting your fair share/value for money when you're paying tax on £20k.


----------



## essexboy (Sep 7, 2008)

Bashy said:


> Im not explaining myself very well, I only find it infuriating as I cannot see how he is getting away with it. I would love to do what he is doing but ive no idea how he is getting away with it.
> 
> Im not annoyed that he is screwing the taxman far from it id just like to know some of these tricks.
> 
> People spelling 'THE' in an odd way like 'TEH' is what really infuriates me lol


Bashy. All he is doing is working for cash, and not putting in the bank and not declaring it, thats all.


----------



## vduboli (Apr 1, 2011)

FrankDangerMaus said:


> it's easy to feel like you're getting your fair share/value for money when you're paying tax on £20k.


It sounds like you have a bit of a bug bear about this? I take it from the way you are writing you are in one of the 'higher' brackets and your not feeling you're getting your fair share?

Presumption is the mother of all fk ups...just saying


----------



## Guest (May 21, 2012)

vduboli said:


> It sounds like you have a bit of a bug bear about this? I take it from the way you are writing you are in one of the 'higher' brackets and your not feeling you're getting your fair share?
> 
> Presumption is the mother of all fk ups...just saying


Well if you are truly one of the people who doesn't mind giving away a large percentage of your income because you truly believe in socialism then well done for being one of the few non hypocritical high earning socialists in the world.

The only other one I can think of is JK Rowling, who pays tax on everything and even has given away 100s of millions, somehow I suspect you're probably not.


----------



## gycraig (Oct 5, 2008)

if hes declaring 20k a year and hes got a 500k house and 50k car,

there gonna look into it.

if hes declaring 20k a year. and earning 30-40k a year. he can match his lifestyle to his wages.


----------



## gycraig (Oct 5, 2008)

vduboli said:


> It sounds like you have a bit of a bug bear about this? I take it from the way you are writing you are in one of the 'higher' brackets and your not feeling you're getting your fair share?
> 
> Presumption is the mother of all fk ups...just saying


i dont feel i get my moneys worth for my tax in the slightest tbh. i drive my car to work with my 2000 a year insurance (20%) tax. i then pay 130 quid a year "road tax" even though its based on my cars engine size :S.

i spend nearly 80 quid a week on fuel which is wat 70 % tax?. then on top of that i get taxed on 400 quid a week earnings. i then have to pay council tax. i then get charged 20% tax on the food i fking eat

and for all this cash i get what exactly ?. police take ages to come. my car gets nicked the police come the next day. i was working in a bar at one point and was a massive fight outside the club. police came an hour later

nhs i love tbh so cant complain about that.

so yes its hard to NOT think im getting fingered by the tax system tbh, when my cousin with a kid and no job has a better lifestyle than me.

obv id be a **** if i tried to AVOID paying the tax. after all why should i be able to EARN money without paying a high % of it to mps expenses


----------



## vduboli (Apr 1, 2011)

FrankDangerMaus said:


> Well if you are truly one of the people who doesn't mind giving away a large percentage of your income because you truly believe in socialism then well done for being one of the few non hypocritical high earning socialists in the world.
> 
> The only other one I can think of is JK Rowling, who pays tax on everything and even has given away 100s of millions, somehow I suspect you're probably not.


Good example of socialism!

I will comment no further, you are quite obviously right and I am wrong!


----------



## Markyboy81 (Jan 27, 2012)

gycraig said:


> i then pay 130 quid a year "road tax" even though its based on my cars engine size :S.


'Road tax' has to be the stupidest, most unfair tax ever


----------



## gycraig (Oct 5, 2008)

Markyboy81 said:


> 'Road tax' has to be the stupidest, most unfair tax ever


i genuinely cant figure it out. i thought road tax was there to maintain the roads etc.

how does a c1 do less damage to the road than 1.4 clio :S.


----------



## Pain2Gain (Feb 28, 2012)

J



36-26 said:


> Are you trying to contradict me here? My friend is on dissability, he does buy a brand new car every year, he doesn't use a bank. He's doing it for 15 years and nobody bothers him


If he's on disability that new car every yea is a perk! He doesn't actually buy it lol


----------



## Markyboy81 (Jan 27, 2012)

gycraig said:


> i genuinely cant figure it out. i thought road tax was there to maintain the roads etc.
> 
> how does a c1 do less damage to the road than 1.4 clio :S.


Exactly. And you still pay the same whether you do 100 miles a year or 100000. They should scrap it altogether


----------



## Pain2Gain (Feb 28, 2012)

Look tax is a very simple issue IMO it solely there so the rich get richer and the poor get poorer and any one in the middle is just eying to stay afloat.

If want to pay tax then gud on ya if you don't and you have the brains how to work out the simple ways of not getting so screwed then gud on ya, if you don't like that gud on ya if you do gud on ya.

Me I do what I need to do to survive and look after my own the gov can get fooked as can anyone else with a problem wih that. There the last of my worries


----------



## Mighty.Panda (Oct 5, 2011)

Maybe hes an Anarchist


----------



## mrbez (Feb 8, 2008)

mixerD1 said:


> The one thing Ive always heard from wealthy people is that a *bent* accountant is worth his weight in gold.


Fixed that for you 

And it is true.


----------



## bigmitch69 (May 14, 2008)

Bashy said:


> Ive recently gone self employed and its infuriating that he is getting away with it, i know none of these tricks so il end up putting my cash in the bank


Sounds like you're jealous. Maybe you should learn to be smarter with how you 'hide' your money from the taxman. I'm self employed. I spend about £150 a week on fuel. I think tax on fuel is 80% or something so i believe i pay the governent enough tax just through fuel prices. I pay more tax on my diesel than a minimum wage employed person thats for sure!


----------



## Kimball (Feb 26, 2012)

gycraig said:


> i dont see how his deposits are relevant because surely thats classified information ?.
> 
> long as he not slamming 5k in at a time im sure bank wouldnt care.
> 
> it will backfire tho i work cash in hand and just pay my bill money into bank on the friday. keep "my" money seperate went for a loan and they said i dotn earn enough lol


Lol nothing is classified to the inland revenue or customs & excise, don't even need a warrant to enter your house so don't think that please!!!

If he pays it in he'll get caught.

This is heading towards the most hypocritical posts ever with all the stick fists of fury gets over paying tax and vat!

And I think that's all I've got to say on this one


----------



## Shady45 (Jan 5, 2010)

Could say he sleeps with people for money occasionally


----------



## Mr tee (Mar 12, 2012)

Bashy said:


> Ive recently gone self employed and its infuriating that he is getting away with it, i know none of these tricks so il end up putting my cash in the bank


does it infuriate you beacuse you dont know how to do it, or because he does and is getting away with it. sounds like your about to call crimestoppers on the poor bloke!


----------



## Zara-Leoni (Mar 12, 2007)

MrBen said:


> Every time any bank note is spent it is taxed at the standing VAT rate for that Item and any other applicable duty. EVERY SINGLE TIME. I pay you 20 quid cash you go to the petrol station, they pay the employee, he buys some ****, the newsagent pays the paper boy. EVERY SINGLE TIME. Now anyone who thinks that being paid cash means they avoid paying tax is very mistaken.
> 
> If the political elite stopped extorting us and wasting our money on killing babies in far off lands I'd keep my gob shut.
> 
> ...


I rant about this fact regularly! Well said!


----------



## Zara-Leoni (Mar 12, 2007)

I'm in a similar position to the car wash blokes.... I've got a nail bar in city centre. Like all beauty places/hairdressers, who's to say how many people came in and what treatment they had or how much they spent.

There are some oriental nail places here been done for money laundering, but generally speaking its only really the sunbed places that are looked at. Main reason being you need qualifications to do nails/hair/beauty whereas any old crook can open a sunbed shop. The orientals tend to just skip the training/qualifications part and let anyone and everyone sit in there and do a butcher job on the nails unfortunately.

Of course I declare all my clients and income correctly  . The skill however is knowing all the many wide and varied things that can be classed as business expenses, so rather than pay yourself then buy them, the business buys them and you don't pay tax on that money. And that's 100% legit 

C&E gave me a £4.2k rebate in December there too..... Then today I got another unexpected cheque for £700. Seems they've convinced themselves I overpaid. I'm not complaining at all!!


----------



## Pain2Gain (Feb 28, 2012)

This got me thinking about the OP how wound up he is at this guy, well how mad he is gonna be with me when I say for the 8 yrs I was self employed I didn't pay feck all to the tax man, directly of course  whoops


----------



## Nidge (Jan 22, 2007)

Bashy said:


> A friend of mine is self employed basically an oddjobs man cutting peoples grass, doing their house up etc.
> 
> He gets paid mostly in cash and as far as the taxman knows he is earning very little but he is taking in far more than he lets on.
> 
> How in the hell is he getting away with this? He gets paid mostly in cash but how can he get away with putting it in the bank without the taxman kicking off?


He'll be getting Working Tax Credit and Child Tax Credit if he's showing low earnings.

HMRC don't work on collecting money, they work on results like Self Assesments received.


----------



## Nidge (Jan 22, 2007)

Bashy said:


> Ive recently gone self employed and its infuriating that he is getting away with it, i know none of these tricks so il end up putting my cash in the bank


Don't show them fcuk all mate.


----------



## Nidge (Jan 22, 2007)

Markyboy81 said:


> 'Road tax' has to be the stupidest, most unfair tax ever


It costs more to collect than they earn from it.


----------



## lxm (Jul 26, 2011)

Its called tax self assesment, most of us honest folk fill in the self assessment at the end of each year if working self employed and taking cash and cheques... And you cant claim ignorance because there is advertising campaigns each year!

Its the right thing to do, you live in the UK...you should pay in if you are making use of the services that are provided by govt.


----------



## The Guvnor (May 17, 2010)

Thunderstruck said:


> If he is putting it in the bank and they one day so checks then he may well be in **** as they are allowed to check, best thing is a shoe box hidden in the cupboard :thumb:


Shoebox you say....

Cupboard you say...

When can we pop round?


----------



## The Guvnor (May 17, 2010)

In some professions which are known for being predominantly cash based over here in the emerald isle such as being a taxi driver - there was a minimum amount of tax to be paid every year - think it was about €1500. Now many lads were doing ok from driving but they always paid just the €1500 and IMO the government had to have taken the view better to collect the €1500 than have them pay nowt and have to chase them etc.

As for the OP - it's not like your mate is coining it - he keeps a bit back but then if went down the sole trader route he could probably write a bit off for mileage, equipment etc. etc.

Live and let live is my motto.

In any case when you have developers and what running up billions in debt and dumping this on the banks and then by virtue of the system the tax payer I don't have issues with the little guy keeping a bit back for himself.

I know some will say we should all pay our fair share etc. but that just brings us back to the banks and developers etc.


----------



## essexboy (Sep 7, 2008)

Just to add salt to our gaping wounds.Did anyone know there is no VAT levied on Helicopters or Yachts? Perhaps another case, of the powers that be, looking after their rich friends.


----------



## The Guvnor (May 17, 2010)

MacUK said:


> Or he could set bank account in another country not saying which but they are 100% safe and won't give details out to 3rd parties then you can launder the money, once you can get money into a bank account opens a whole new world


  He is an odd job man - hardly has suitcases full of cash to lodge.


----------



## essexboy (Sep 7, 2008)

Kimball said:


> Lol nothing is classified to the inland revenue or customs & excise, don't even need a warrant to enter your house so don't think that please!!!
> 
> If he pays it in he'll get caught.
> 
> ...


They mainly use debt collection agencies now.So once theyve decided how much you owe,and you dont pay it you eventually end up with The Repo man at your door.


----------



## The Guvnor (May 17, 2010)

Milky said:


> You put over £5000 in the bank and they are obliged to inform HMRC, you draw money out they ask what its for...
> 
> All you can say its its winnings from gambling.


Exactly and try doing it every week - no chance, you'd be asked questions over lodging far less than £5000 as well.

What one considers a large amount of cash varies from person to person but usually a government or bank official perks up on anything over a few hundred.

It's not the 1970's any more...


----------



## The Guvnor (May 17, 2010)

essexboy said:


> Just to add salt to our gaping wounds.Did anyone know there is no VAT levied on Helicopters or Yachts? Perhaps another case, of the powers that be, looking after their rich friends.


No road tax on the chopper either and the fuel is probably now cheaper as well! Can you land a chopper at tesco's? 

Did not know that about the vat mate.


----------



## The Guvnor (May 17, 2010)

biglbs said:


> I wonder if Hm are checking Ip addresses as we tap?


Probably mate but most of us are already offshore - the hedge trimming was so successful we outsource it now and just watch the cash flow in...


----------



## Guest (May 22, 2012)

Cash, split it up among family members, get them to buy you something and give it you as a gift, works for small sums of money.


----------



## Hera (May 6, 2011)

Bashy said:


> A friend of mine is self employed basically an oddjobs man cutting peoples grass, doing their house up etc.
> 
> He gets paid mostly in cash and as far as the taxman knows he is earning very little but he is taking in far more than he lets on.
> 
> How in the hell is he getting away with this? He gets paid mostly in cash but how can he get away with putting it in the bank without the taxman kicking off?


I think he can because there's no record of him earning it. My friends were strippers and made tonnes of money and were fine putting it in the bank without being taxed.


----------



## Smitch (Dec 29, 2008)

I'd be surprised if banks report small amounts ie a few thousand here and there that the op's freind would be dealing in.

I've looked after money for mates before in my personal bank accounts and never had any issue, i had £36k in one once which was paid in over a few weeks and never had a knock.


----------



## mikemull (Oct 23, 2011)

Just declare what he needs to cover mortgage and bills. All weekly expenditures such as food, nights out, meals, petrol etc are cash.


----------



## Imy79 (Oct 19, 2007)

AS mentioned by a few members, you HAVE to pay some kind of tax as self employed, otherwise the HMRC will catch up on you, maybe 5 years later but they certainly will. The key is to hire a good accountant to avoid paying the tax you should, with expenses, salary thresholds, VAT returns and other LEGAL loopholes, you can avoid paying so much. Obviously the OP may not do this...

AS for banks they get reports for 5k plus deposits and its their job to investigate the said persons's account for irreguler activity. If it is a one off, no one will be botified but if its a reguler occurance then be sure that someone knows!.

Always remember HMRC do not need to prove that you have not paid your taxes, YOU have to prove that the money you have earnt is legitmate and you have paid correct taxes.


----------



## Bashy (Jun 16, 2010)

I get that putting enough into the bank to cover bills etc and keeping cash for food fuel and things works.

My concern is when I want to buy a house or something along those lines and ive built up a nice little reserve of cash thats not in the bank then im not going to be able to deposit it without the taxman getting nosey.


----------



## stone14 (Mar 24, 2005)

Bashy said:


> A friend of mine is self employed basically an oddjobs man cutting peoples grass, doing their house up etc.
> 
> He gets paid mostly in cash and as far as the taxman knows he is earning very little but he is taking in far more than he lets on.
> 
> How in the hell is he getting away with this? He gets paid mostly in cash but how can he get away with putting it in the bank without the taxman kicking off?


stop being jelous cause you anit got the balls to do it yourself :thumb:


----------



## gycraig (Oct 5, 2008)

my mate whos a police officer was telling me you could put it through a casino ?.

like if u had 50k and put 25k on red and got 50k back that 50k would be legit money


----------



## JANIKvonD (Jul 7, 2011)

i pay tax in full mon-fri 7.30-5.30, anything outwith this is mine


----------



## LOCUST (May 4, 2006)

How does this work with training based company's also if employed somewhere else ?

So for instaI work full time employed doing digital printing.


----------



## LOCUST (May 4, 2006)

How does this work with training based company's when employed full time elsewhere.

For example if I worked full time in burger king and on the side I ran my own personal training company.

Could I declare everything based around my training ? Needed for work.

Like supplements gym membership.

Petrol for going to gym and training clients work clothing the list is endless.

Could I declare these and claim the tax back or would I need to earn a certain amount before I qualify ?


----------



## Milky (Nov 30, 2008)

LOCUST said:


> How does this work with training based company's when employed full time elsewhere.
> 
> For example if I worked full time in burger king and on the side I ran my own personal training company.
> 
> ...


Yes you can mate,

My mate even got a receipt everytime he bought a Loot !


----------



## Guest (May 23, 2012)

I just had to pay £1215 for an upgraded license for my business just to do what we already do, all because I went from sole trader to ltd company.

crazy thing is i'm doing the exact same thing as I was alst week, but because I'm now limited, if I didn't pay that within 28 days I'd be commiting a criminal offense!!

Fvcking government, all they are is a ripoff.

I'm seriously gonna hire an accountant soon and find out every tax dodge there is, my mrs is a student, she'll be on the payroll for £7470 so we get the extra tax free...anything i can think of!


----------



## mikep81 (Oct 8, 2010)

Zara-Leoni said:


> I'm in a similar position to the car wash blokes.... I've got a nail bar in city centre. Like all beauty places/hairdressers, who's to say how many people came in and what treatment they had or how much they spent.
> 
> There are some oriental nail places here been done for money laundering, but generally speaking its only really the sunbed places that are looked at. Main reason being you need qualifications to do nails/hair/beauty whereas any old crook can open a sunbed shop. The orientals tend to just skip the training/qualifications part and let anyone and everyone sit in there and do a butcher job on the nails unfortunately.
> 
> ...


What Zara said is bang on. My accountant said to me it's all about justification. If I can justify that the £350 suit I bought this year will be used to wear while protecting clients, then I can claim tax relief and basically deduct that amount from my income.

As for the banks and paying money in, It all relies on a person looking at it and reporting it. I used to work for NatWest bank about 12 years ago making large same day transfers for corporate accounts and sometimes personal, I'm talking multi million pound stuff, but we never needed to even check signatures on anything that was under £5,000. So you could walk into a bank, arrange a same day transfer for £4,500 and we wouldn't even check that it was your signature on the paperwork or not, and those from regular users of the service would only get a quick glance once the transfer deadlines were approaching. One solicitor specialising in house purchases always used to give us a few transfers last minute on Friday to ensure their clients could move into their house for Saturday morning (generally between £80,000 and £300,000) and they just used to get quickly glanced at, and on some occasions we were told to transfer the money first to get it gone and then do the signature checks.


----------



## WannaGetHench (Aug 22, 2010)

mikemull said:


> Just declare what he needs to cover mortgage and bills. All weekly expenditures such as food, nights out, meals, petrol etc are cash.


 is that legal? can you do that?


----------



## WannaGetHench (Aug 22, 2010)

Imy79 said:


> AS mentioned by a few members, you HAVE to pay some kind of tax as self employed, otherwise the HMRC will catch up on you, maybe 5 years later but they certainly will. The key is to hire a good accountant to avoid paying the tax you should, with expenses, salary thresholds, VAT returns and other LEGAL loopholes, you can avoid paying so much. Obviously the OP may not do this...
> 
> AS for banks they get reports for 5k plus deposits and its their job to investigate the said persons's account for irreguler activity. If it is a one off, no one will be botified but if its a reguler occurance then be sure that someone knows!.
> 
> Always remember HMRC do not need to prove that you have not paid your taxes, *YOU have to prove that the money you have earnt is legitmate and you have paid correct taxes.*


how lol?


----------



## stone14 (Mar 24, 2005)

Sorry to hyjack iv just got a question about tax, what's the rate of tax you need to pay on wages? I know you don't need to start paying vat or register till your business 'total income' is over 67k pa. But does this also mean you can't claim your vat back if your not paying it to HMrev?

I'm new to this so trying to get as much correct info as I can before I start up.

And for things like fuel that don't show home much is taxable on the reviept, how do you work out how much tax to claim back on which items?

Cheers


----------



## wardz (Aug 19, 2008)

If your self employed, and say your earning £30ph you only pay yourself minimum wage on the books and they only pay tax and That wage. You can also employ a family member on paper and pay money into an account in there name. There's plenty of firms who can fiddle tax for you. If he's getting paid cash he is clearly only declaring a small amount if he's using an accountant it will all look legit


----------



## IGotTekkers (Jun 6, 2012)

Bashy said:


> I get that putting enough into the bank to cover bills etc and keeping cash for food fuel and things works.
> 
> My concern is when I want to buy a house or something along those lines and ive built up a nice little reserve of cash thats not in the bank then im not going to be able to deposit it without the taxman getting nosey.


Buy cash into a newbuild. They tend not to ask questions. I know a few guys involved in big time drug smuggling (one just got done for a few million £ worth of skag and got 12 years) all they do is bung a few extra to the developer companies. They seem to like cash in hand aswell.


----------



## jamiew691 (Mar 23, 2014)

He more than likely puts fixed amounts into the bank each month, my dads mate does this, he gets paid with cash 90% of the time and pays in a couple of hundred a month and then keeps the rest at home and hes just opening another bank account with Santander so he can still pay money in just not to the same bank so it looks suspicious. Fair enough to the guy, government take enough!


----------



## essexboy (Sep 7, 2008)

stone14 said:


> Sorry to hyjack iv just got a question about tax, what's the rate of tax you need to pay on wages? I know you don't need to start paying vat or register till your business 'total income' is over 67k pa. But does this also mean you can't claim your vat back if your not paying it to HMrev?
> 
> I'm new to this so trying to get as much correct info as I can before I start up.
> 
> ...


You cant claim any Vat back, unless your vat registered.Most petrol receipts, now have vat shown.Your accountant would deduct automatically, if you were vated, but as it doesnt apply they wont.Any exs are shown against earnings.Example,if you need a £100 widget for your job, and you earn £200 a year, then you will only pay tax on £100.Get it?


----------



## stone14 (Mar 24, 2005)

essexboy said:


> You cant claim any Vat back, unless your vat registered.Most petrol receipts, now have vat shown.Your accountant would deduct automatically, if you were vated, but as it doesnt apply they wont.Any exs are shown against earnings.Example,if you need a £100 widget for your job, and you earn £200 a year, then you will only pay tax on £100.Get it?


No maybe its too early for me atm, what's a widget?

Also can you pay yourself less than min wage so u pay less tax on it? Is that ok?

Yeh a reciept on fuel will show the 20% vat but what about the tax can u claim that back? Or just the vat? Cheers


----------



## essexboy (Sep 7, 2008)

stone14 said:


> No maybe its too early for me atm, what's a widget?
> 
> Also can you pay yourself less than min wage so u pay less tax on it? Is that ok?


You Donut.By widget, I was refering to any relevant tool, that is necessary to do your job! Dont try and avoid tax, before youve even started up! its not advisable.Im in year 4 of an HMRC enquiry, which has so far cost me £70000,in unpaid tax and specialist fees.

Just keep any receipts that relates in any way to your business, and any that dont.If your going to become a builder, you need a van which costs you 10k right? If you earn 10k in the same year, you wont pay any tax.Geddit?


----------



## stone14 (Mar 24, 2005)

essexboy said:


> You Donut.By widget, I was refering to any relevant tool, that is necessary to do your job! Dont try and avoid tax, before youve even started up! its not advisable.Im in year 4 of an HMRC enquiry, which has so far cost me £70000,in unpaid tax and specialist fees.
> 
> Just keep any receipts that relates in any way to your business, and any that dont.If your going to become a builder, you need a van which costs you 10k right? If you earn 10k in the same year, you wont pay any tax.Geddit?


Ok cool so you only pay tax on any profit over the top ie 10k van but earn 12k profit so your taxed on 2k? Because the 10k profit brings you back to square 1 were you were before u bought the van. Is that earning just the profit or total income?

Cheers I need a coffee I think lol

What's the tax rate atm, vats 20%, what's tax %?

Also I think I will get an accountant in every 6month to sort all this out untill I no what I'm doing myself or even do it then pay an accountant to check it over the 1st couple times to make sure its right


----------



## essexboy (Sep 7, 2008)

stone14 said:


> Ok cool so you only pay tax on any profit over the top ie 10k van but earn 12k profit so your taxed on 2k? Because the 10k profit brings you back to square 1 were you were before u bought the van. Is that earning just the profit or total income?
> 
> Cheers I need a coffee I think lol
> 
> What's the tax rate atm, vats 20%, what's tax %?


Yup thats right,youd pay tax at 20% on £2000.£400.In the first year, youd likely buy so much kit youd pay nothing.Tools, stationary, computer,clothing list goes on.You can even claim £500 for a home office, and cost of heating it.


----------



## stone14 (Mar 24, 2005)

essexboy said:


> Yup thats right,youd pay tax at 20% on £2000.£400.In the first year, youd likely buy so much kit youd pay nothing.Tools, stationary, computer,clothing list goes on.You can even claim £500 for a home office, and cost of heating it.


Yeh well I'm working from home and using a room as storage for my goods rather then pay for a unit atm to keep my outgoings down till it picks up. Is that £500 per year? Will a business advisor tell me all this also? I'm seeing 1 next week.


----------



## stone14 (Mar 24, 2005)

essexboy said:


> Yup thats right,youd pay tax at 20% on £2000.£400.In the first year, youd likely buy so much kit youd pay nothing.Tools, stationary, computer,clothing list goes on.You can even claim £500 for a home office, and cost of heating it.


So it will benefit to register vat if you get over 67k pa so that 20% tax I would pay can be claimed back through the 20% vat I would get back. But only once I'm getting over 67k total income pa.


----------



## essexboy (Sep 7, 2008)

stone14 said:


> So it will benefit to register vat if you get over 67k pa so that 20% tax I would pay can be claimed back through the 20% vat I would get back. But only once I'm getting over 67k total income pa.


You get all your vat back, once your registered.You then pay 20% vat on your total profit.You then pay 20% tax, on whats left.As a lot of my business is outside of the eu,I get to claim, more vat back than I pay.So every quarter i get 2/3 k refund.That pays my tax.So essentially I pay nothing.It does have advantages, for some.


----------



## essexboy (Sep 7, 2008)

stone14 said:


> So it will benefit to register vat if you get over *67k pa* so that 20% tax I would pay can be claimed back through the 20% vat I would get back. But only once I'm getting over 67k total income pa.


Thats turnover, not profit.


----------



## essexboy (Sep 7, 2008)

stone14 said:


> Yeh well I'm working from home and using a room as storage for my goods rather then pay for a unit atm to keep my outgoings down till it picks up. Is that £500 per year? Will a business advisor tell me all this also? I'm seeing 1 next week.


A business adviser wont know.An accountant should.You should be able to claim some insurance back too.Make sure you include/tell your home insurance company.


----------



## essexboy (Sep 7, 2008)

stone14 said:


> Yeh well I'm working from home and using a room as storage for my goods rather then pay for a unit atm to keep my outgoings down till it picks up. *Is that £500 per year?* Will a business advisor tell me all this also? I'm seeing 1 next week.


Everything is quoted anually, except vat returns, which are quarterly.


----------



## stone14 (Mar 24, 2005)

essexboy said:


> You get all your vat back, once your registered.You then pay 20% vat on your total profit.You then pay 20% tax, on whats left.As a lot of my business is outside of the eu,I get to claim, more vat back than I pay.So every quarter i get 2/3 k refund.That pays my tax.So essentially I pay nothing.It does have advantages, for some.


Ok so I think iv got this right: example.

I pay out 7k pm on goods (84k pa) I make 3k pm profit, 36k pa,

120k pa total income.

My total income is 120k so I get all my vat back on the 84k from goods,

I then pay vat on the 36k 20% which is 7.2k which leaves 28.8k,

28.8k is taxed 20% leaving leaving 23.1k total profit.

Plus the vat back from 84k which is 16k

So total profit once vat is back is 39-40k

??


----------



## essexboy (Sep 7, 2008)

stone14 said:


> Ok so I think iv got this right: example.
> 
> I pay out 7k pm on goods (84k pa) I make 3k pm profit, 36k pa,
> 
> ...


ok lets do it anually. you pay out 84k on vatable goods. you get 20% back.£16.8k

If your profit is 36k you pay 20% vat 7.2k

Whats left is 28.8 k However, you will have receipts for goods/services that are required for you business.Lets say 1st year 10k, van etc.

That will be offset against tax, so 28.8k profit less 10k is 18.8k which means you will pay 3.76k in tax(20% of 18.8k)


----------



## Hera (May 6, 2011)

stone14 said:


> Sorry to hyjack iv just got a question about tax, what's the rate of tax you need to pay on wages? I know you don't need to start paying vat or register till your business 'total income' is over 67k pa. But does this also mean you can't claim your vat back if your not paying it to HMrev?
> 
> I'm new to this so trying to get as much correct info as I can before I start up.
> 
> ...


You're charged income tax on income over 10K PA (I think that's the amount now) and you can take tax free dividends (totaling an annual income of 40K)...I think those are the figures before income tax but not certain...and how much you can keep of that dividend depends on if there are other shareholders. And then there's of course corporation tax.

To claim back VAT you need to be VAT registered and for that you need to also charge VAT. So if you're selling clothes and want to be VAT registered, you need to whack on VAT to the price of your stock. I'm VAT registered because I'm charged VAT on my components which amounts to a lot and as a result, need to add VAT to my products...unfortauntely.


----------



## stone14 (Mar 24, 2005)

essexboy said:


> ok lets do it anually. you pay out 84k on vatable goods. you get 20% back.£16.8k
> 
> If your profit is 36k you pay 20% vat 7.2k
> 
> ...


I get it now from this post thank mate, so I was close lol. Cheers.


----------



## stone14 (Mar 24, 2005)

Katy said:


> You're charged income tax on income over 10K PA (I think that's the amount now) and you can take tax free dividends (totaling an annual income of 40K)...I think those are the figures before income tax but not certain...and how much you can keep of that dividend depends on if there are other shareholders. And then there's of course corporation tax.
> 
> To claim back VAT you need to be VAT registered and for that you need to also charge VAT. So if you're selling clothes and want to be VAT registered, you need to whack on VAT to the price of your stock. I'm VAT registered because I'm charged VAT on my components which amounts to a lot and as a result, need to add VAT to my products...unfortauntely.


Yeh I have to pay vat on mine, did you register for vat from the start or leave it for 1 year till the business priced up since most businesses won't have a total income of 67k in the 1st year, well I doubt mine will...

Atm my prices to customers will include the vat I pay. Because I'm still the cheapest in my area, but this means my profit is very little.

I see a lot below the 67k total pa don't register for vat so it must be better that way?

Thanks for all the advice ppl, what do yous think?


----------



## stone14 (Mar 24, 2005)

Katy said:


> You're charged income tax on income over 10K PA (I think that's the amount now) and you can take tax free dividends (totaling an annual income of 80K)...I think those are the figures before income tax but not certain...and how much you can keep of that dividend depends on if there are other shareholders. And then there's of course corporation tax.
> 
> To claim back VAT you need to be VAT registered and for that you need to also charge VAT. So if you're selling clothes and want to be VAT registered, you need to whack on VAT to the price of your stock. I'm VAT registered because I'm charged VAT on my components which amounts to a lot and as a result, need to add VAT to my products...unfortauntely.


So in theory if I was to sell the gud for the price I get them for and have a total of 40k total income pa, even tho iv made no money I would still get taxed as my income is over 10k?


----------



## Hera (May 6, 2011)

stone14 said:


> Yeh I have to pay vat on mine, did you register for vat from the start or leave it for 1 year till the business priced up since most businesses won't have a total income of 67k in the 1st year, well I doubt mine will...
> 
> Atm my prices to customers will include the vat I pay. Because I'm still the cheapest in my area, but this means my profit is very little.
> 
> ...


I registered prior to needing to pay significant amounts for components e.g. 100 metres of fabric. You can also backdate your first VAT claim by I think a year, or 6 months...not sure. I just know I made a backdated first claim. I'm not even trading yet so have become registered way before I even start to earn as it makes financial sense to claim the VAT and means that if I one day manage to earn enough, I won't need to suddenly whack VAT onto my goods, thereby upsetting customers.

I'm confused, how have your added VAT to your prices if you're not VAT registered?

IMO, if you pay a significant amount of VAT that can be balanced, or better, by charging VAT on your own goods, then it's best being registered. However, if you don't pay much VAT on stock etc then I'd just suck up it because in the long run your profits will be larger. My stock is manufactured from VAT charged components and labor so it makes financial sense for me to pass that cost onto customers, otherwise, I'd struggle to make that cost back.



stone14 said:


> So in theory if I was to sell the gud for the price I get them for and have a total of 40k total income pa, even tho iv made no money I would still get taxed as my income is over 10k?


You get charged income tax on any money you take from the company as salary over 10K and anything over the permitted dividend (30K), totaling 40K. So technically, you can take up to 40Kpa from your business before being taxed (income tax)...I think...it's not a situation I'm personally in but that's my understanding. Then your charged corporation tax on anything left in the company after expenses e.g. salary, bills, stock etc I don't however know if your charged corporation tax on the dividend or if it's seen as an expense.

Is that making sense?


----------



## stone14 (Mar 24, 2005)

Katy said:


> I registered prior to needing to pay significant amounts for components e.g. 100 metres of fabric. You can also backdate your first VAT claim by I think a year, or 6 months...not sure. I just know I made a backdated first claim. I'm not even trading yet so have become registered way before I even start to earn as it makes financial sense to claim the VAT and means that if I one day manage to earn enough, I won't need to suddenly whack VAT onto my goods, thereby upsetting customers.
> 
> I'm confused, how have your added VAT to your prices if you're not VAT registered?
> 
> ...


Iv not added vat in that sense say. I buy something for £40 and pay 20vat that's cost me £48 total so I then put my profit ontop of that say £7 so sell it for £54.99 so I get my vat back off the customer but charging more basicly, but its still cheapest in my area.

Am going to look into vat abit more so if I can backdate it 1year then I can do that, I won't be started up till afteer april anyway so I can back date it next april, am sure I will know what I'm doing by then lol


----------



## Hera (May 6, 2011)

stone14 said:


> Iv not added vat in that sense say. I buy something for £40 and pay 20vat that's cost me £48 total so I then put my profit ontop of that say £7 so sell it for £54.99 so I get my vat back off the customer but charging more basicly, but its still cheapest in my area.
> 
> Am going to look into vat abit more so if I can backdate it 1year then I can do that, I won't be started up till afteer april anyway so I can back date it next april, am sure I will know what I'm doing by then lol


Ah ok, yeah I understand, within your profit you've recouped the VAT you paid


----------



## stone14 (Mar 24, 2005)

Katy said:


> Ah ok, yeah I understand, within your profit you've recouped the VAT you paid


Yeh I'm starting from the bottom atm so I need every penny in my pocket atm, probably wait till then end of the tax year to sort vat out. Does Vat and tax both ron april-to-april??


----------



## stone14 (Mar 24, 2005)

Katy said:


> I registered prior to needing to pay significant amounts for components e.g. 100 metres of fabric. You can also backdate your first VAT claim by I think a year, or 6 months...not sure. I just know I made a backdated first claim. I'm not even trading yet so have become registered way before I even start to earn as it makes financial sense to claim the VAT and means that if I one day manage to earn enough, I won't need to suddenly whack VAT onto my goods, thereby upsetting customers.
> 
> I'm confused, how have your added VAT to your prices if you're not VAT registered?
> 
> ...


Iv not heard of corporation tax, sounds like they just wana take money off you left right and center, vat, tax, corporation tax, what else? How's small business's starting from scratch suposed to get off the ground it loads of profit is taken from them


----------



## Hera (May 6, 2011)

stone14 said:


> Yeh I'm starting from the bottom atm so I need every penny in my pocket atm, probably wait till then end of the tax year to sort vat out. Does Vat and tax both ron april-to-april??


No, VAT is quarterly which actually helps ensure you're on track with your accounts by the time you need to file you annual return, as opposed to having to trawl through the whole years accounts!!


----------



## Hera (May 6, 2011)

stone14 said:


> Iv not heard of corporation tax, sounds like they just wana take money off you left right and center, vat, tax, corporation tax, what else? How's small business's starting from scratch suposed to get off the ground it loads of profit is taken from them


Well, it appears to also be set up to penalise company's who are successful and creating wealth! Hence all of the tax avoidance going on!

I think that start-ups can get help with tax and reducing it when they start up...not sure what it is though...something about tax relief or a small salary from the government. I remember people talking about it at the Prince's Trust.

I don't fully understand corporation tax at the moment as I'm not trading and so haven't experienced it first hand yet, but as I understand it's on any profits in the company for the financial year (after expenses) and I think there are two rates depending on the profit amounts (i.e. lots or little). I think you have to making 100K plus to pay the higher rate but I could just be making that up! :laugh: What I don't know is if dividends are taxed or deemed to be a company expense...I think it's the former.


----------



## stone14 (Mar 24, 2005)

Katy said:


> No, VAT is quarterly which actually helps ensure you're on track with your accounts by the time you need to file you annual return, as opposed to having to trawl through the whole years accounts!!


Ah ryt I get u now that's even better then, does it take much learning to do it yourself or is it straight forward. Do u not need a college course to understand the vat/tax sheets lol


----------



## Hera (May 6, 2011)

stone14 said:


> Ah ryt I get u now that's even better then, does it take much learning to do it yourself or is it straight forward. Do u not need a college course to understand the vat/tax sheets lol


I have an accountant :blush: I provide him with a spreadsheet showing all VAT charged expenses and the VAT charged (with dates etc). He files it and a week later I get refunded to my business account  but I know a few people who do it themselves and seem to cope fine


----------



## stone14 (Mar 24, 2005)

Katy said:


> I have an accountant :blush: I provide him with a spreadsheet showing all VAT charged expenses and the VAT charged (with dates etc). He files it and a week later I get refunded to my business account  but I know a few people who do it themselves and seem to cope fine


Ah right cool. So basicly everything on your receipts with vat charged goes onto a spreadsheet and he does the calculations.

Do you need to keep the receipts as proof still once your claimed it back?


----------



## Theorist (Jun 18, 2013)

They don't care enough to look into how much every person is putting into their bank account. Unless some **** with nothing better to do starts investigating it nothing will happen I bet.


----------



## elliot1989 (May 3, 2013)

He will get caught eventually. When I do the odd cobble I just use the cash to pay for shopping or whatever. It only goes in the bank if I want the tax man to know about it. (Hope he's not reading haha)


----------



## Captain lats (Mar 25, 2014)

Doubt anythin bad will happen 2 him i know a lot of people in trades that do a lot of "foreigners"


----------



## mgseven (Mar 26, 2010)

gycraig said:


> i genuinely cant figure it out. i thought road tax was there to maintain the roads etc.
> 
> how does a c1 do less damage to the road than 1.4 clio :S.


There has been no "road tax" as such in the UK since the 1930s. We pay a vehicle excise duty and are heavily taxed on fuel and other consumables we use for our vehicles.


----------



## gycraig (Oct 5, 2008)

mgseven said:


> There has been no "road tax" as such in the UK since the 1930s. We pay a vehicle excise duty and are heavily taxed on fuel and other consumables we use for our vehicles.


wow thanks for correcting me 2 years ? later


----------



## Imy79 (Oct 19, 2007)

WannaGetHench said:


> how lol?


This only happens if the HMRC investigate you for your taxes (in cases where they know\think you have dodged taxes). Then it will be your job to prove the money you earn t is legit and has all the paperwork. Rathe rthan them showing you how you havent paid taxes!!


----------



## Gotista (Sep 25, 2012)

Love threads like these learn so much!


----------



## Phil D (Feb 21, 2010)

Why shouldn't you be paying your fair share of tax like the rest of us? Yes it sucks seeing a wedge of your pay cheque dissappear every month but it's needed to keep this country running. Pi55es me off when people don't pay what they should leaving the rest of us to cover the bill


----------



## Huntingground (Jan 10, 2010)

Every entrepreneur/businessman/property developer will endeavour to pay as little tax as possible without breaking any laws. Surely, we can all see this is good business sense.

In my line of work there are a number of options for tax avoidance and some may say, tax evasion but the law is a grey area.

1. Offshore. These are schemes which wash your money and can return you 85/90% net of your gross. These schemes are used by plenty, usually based in Channel islands or Isle of Man, and were the ones used by Jimmy Carr etc. There is every chance of being investigated by HMRC and they can backdate any tax penalties 6 years. Some boys I know have lost houses because of this.

2. Dividends. Pay yourself 12k a year and take max dividends. This is legal and most businessmen will use this. Have a good, "creative" accountant and you can get back 80% net of total gross, legit.

Obviously there are also many others ways of minimising tax but these are probably not relevant for an open board discussion.


----------



## DeskSitter (Jan 28, 2013)

Huntingground said:


> Every entrepreneur/businessman/property developer will endeavour to pay as little tax as possible without breaking any laws. Surely, we can all see this is good business sense.
> 
> In my line of work there are a number of options for tax avoidance and some may say, tax evasion but the law is a grey area.
> 
> ...


This sounds right to me although have heard elsewhere at some point there is no limit to when they can go back, which come to think of it doesn't sound right to me as the 6 year figure seems to ring truer, think it appears in some Act of Parliament somewhere to do with claiming losses or injury or whatever - just had a look, it's in 'The Limitation Act 1980' but does this cover HMRC?

I have heard stories contrary to this, of individuals been forced to repay debt going back over 30 years under the accusation by HMRC that they had been working and not declaring income. The HMRC are a law unto themselves


----------



## Huntingground (Jan 10, 2010)

DeskSitter said:


> This sounds right to me although have heard elsewhere at some point there is no limit to when they can go back, which come to think of it doesn't sound right to me as the 6 year figure seems to ring truer, think it appears in some Act of Parliament somewhere to do with claiming losses or injury or whatever - just had a look, it's in 'The Limitation Act 1980' but does this cover HMRC?
> 
> I have heard stories contrary to this, of individuals been forced to repay debt going back over 30 years under the accusation by HMRC that they had been working and not declaring income. The HMRC are a law unto themselves


Correct, legally there are no limits to how far back they go for tax evasion but for all intents and purposes, 6 years is the usual base.

http://www.telegraph.co.uk/finance/personalfinance/consumertips/tax/9590784/Were-coming-to-get-you-taxman-warns-dodgers.html

If you are interested, Montpelier is the biggest and most well known of these offshore companies and they are under investigation now by HMRC.


----------



## gycraig (Oct 5, 2008)

Phil D said:


> Why shouldn't you be paying your fair share of tax like the rest of us? Yes it sucks seeing a wedge of your pay cheque dissappear every month but it's needed to keep this country running. Pi55es me off when people don't pay what they should leaving the rest of us to cover the bill


because we get absolutley no say in how much tax is collected, what it is used for, who is entitled to it, what the priorities for the tax is,how much the nhs get, how much is spent on the roads including the massive pot holes, how much of it is spent on the 90 speed bumps we seem to have on my estate.how much tax i pay per litre of petrol, how much is spent on speed cameras

as long as im paying a fking stupid amount of car tax, council tax 20% vat and also a massive amount of tax on the petrol to get me to work 50 miles away every day i will be squirelling every penny of tax back i possibly can from my second job.

people earning a little bit with a side job/minor tax evasion is a drop in the water next to the 10 couples on his streets claiming benefits as a single mum while the daddy lives with her.


----------



## Hera (May 6, 2011)

stone14 said:


> Ah right cool. So basicly everything on your receipts with vat charged goes onto a spreadsheet and he does the calculations.
> 
> Do you need to keep the receipts as proof still once your claimed it back?


Sorry for late reply...been away...

...pretty much. I list all business expenses on which I was charged VAT, showing the expense, the amount charged and the VAT charged. It has to be the VAT shown on the receipt as opposed to just what you calculate because some charges cover delivery etc so it needs to be accurate.

You need to keep your receipts, as with all accounting, but only just filed away...you don't need to show them when you make your claim.


----------



## Was_Eric (Jul 3, 2008)

happiness, peace and love above all


----------

