How to avoid paying Tax in the UK?

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tehpokerguy

  • #1
    Hi, I have started to make some serious money and have been reading around the web on paying less tax. Can any accountants help me with this because at the moment I am not registered for anything and need to seriously think about how I am going to go about this?

    I have been brainstorming ways of paying little tax and keeping large amounts of profit and would like to know if this would work?


    Create a United Kingdom Limited company. Create an offshore limited or IBC company in either Seychelles, Hong Kong or Singapore. Then with the offshore company create an offshore bank account and get a stand in director so my name is hidden.

    Run my internet business as a UK Limited Company, recieve all my profits, payments and pay outs etc... through my UK company. At the end of every month, using my offshore company send invoices for 80% of my profits for outsourced work. Then get a personal offshore bank account and pay myself from the business offshore account to my personal offshore account and get a debit/credit card for my personal offshore account.

    Would this be all legal and above board? And does anyone know how much a setup like this would cost? Or do you accountants have a better way to avoid tax?

    As I understand it tax evasion is illegal but tax avoidence is not.

    Thanx

    Poker Guy
     
    Tom McClelland

    Tom McClelland

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    Feb 10, 2008
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  • #3
    Any home-made scheme that you try to cook up like this is almost certain to be an expensive failure that is either illegal and/or fails to actually avoid any UK tax liability. If it were as easy as creating a fake offshore company with a dummy director and then repatriating the profits shipped offshore tax free then everyone would be doing it.

    Perhaps you should spend some of the "serious" profits that you're making on top-notch tax-avoidance advice. There probably are schemes that you can use, but beware, they tend to (a) cost fees upfront and (b) have risk attached to them that HMRC will change the rules so as to leave you with all the costs but none of the tax benefits.
     
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    Paul Norman

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    Apr 8, 2010
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    Torrevieja
  • #4
    Minimising your tax liability is a sound thing to do. However, it is also the domain of professionals.

    I would also recommend you hire the services of a top quality tax consultant.

    However, if you are making serious money, you will have to pay some tax. More than if you were not. Which is kind of how it works.
     
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    Abacus Accountants

  • #6
    It would not be advisable to try to circumvent rules by yourself. There are established structures available to achieve the results you seek although you would need to accept the downsides as well.
     
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    M

    MASSEY

  • #12
    andygambles said:
    As has been demonstrated the top earners contribute more tax than everyone else.
    Click to expand...

    I see what your saying but the uk has been renound for ripping of it's citizens for a long time. In terms of the wealthier contributing more to the tax system they ofcourse do but they seem to bend the rules and be allowed to, where as the little guy can't bend the rules. Look at some of the richest guys in the country they will be tax evading without a doubt one way or another.
     
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    tehpokerguy

  • #14
    accountancyextra said:
    How much money is a serious amount of money and what is it you do?
    Click to expand...

    This is going to be a bit complicated to explain, I own a few websites and was earning a few thousand a month from them from being an affiliate to cpa companies but I never registered as a businness as I was taking payments through ePassporte(dot) com. I had a virtual visa account with them and my money was paid into St. Kitts, Nevis and Anguilla National Bank (SKNA) offshore so I never paid any tax and had a visa debit card to use and spend my money. Now late last year America changed some laws which forced visa to stop services with ePassporte/SKNA and now I have thousands stuck in there bank which I cant transfer unless I pay tax but I am not registered as anything.

    But after they stopped these services I turned my skills more to affliaite marketing and now employ 8 people from the Philippines through Odesk(dot)com to market products for me and they get paid $250 a month for 160 hours work, it is a grey area I deal in if you really want to know involving classified advert postings. I also have a virtual assistant from India called Girish who handles e-mails and other day to day things for $3 an hour. I do not own or rent any property in the Philippines or India and all my employees work from home from thier own computer stations.

    My problem is now I have money I have not paid tax on sat in an SKNA bank account which for the moment I can't touch and I have been making several thousand a week from my new venture and have checks I cannot cash because I would obviously be evading tax if I did as I am not registered as a company. Now you see the prediciment I am in, and I am looking for a way to setup as a business and to legally maximise my profits while minimizing tax payments.

    Thanx

    Poker Guy
     
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    Borobar

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    Mar 19, 2011
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  • #15
    If someone had thousands building up in an account and having to use personal
    Funds to keep a business going they would bite the bullet register business draw on it then seek tax advice on going forward so you dont pay tax on future amounts. Is tax even drawn straight away when transferring? I doubt it so they'd still be time to set up other companies.
    Sorry but I just have a STRONG feeling this is the start of a well thought out scam
     
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    wizzard

    wizzard

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    Oct 7, 2008
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  • #16
    tehpokerguy said:
    This is going to be a bit complicated to explain, I own a few websites and was earning a few thousand a month from them from being an affiliate to cpa companies but I never registered as a businness as I was taking payments through ePassporte(dot) com. I had a virtual visa account with them and my money was paid into St. Kitts, Nevis and Anguilla National Bank (SKNA) offshore so I never paid any tax and had a visa debit card to use and spend my money. Now late last year America changed some laws which forced visa to stop services with ePassporte/SKNA and now I have thousands stuck in there bank which I cant transfer unless I pay tax but I am not registered as anything.

    But after they stopped these services I turned my skills more to affliaite marketing and now employ 8 people from the Philippines through Odesk(dot)com to market products for me and they get paid $250 a month for 160 hours work, it is a grey area I deal in if you really want to know involving classified advert postings. I also have a virtual assistant from India called Girish who handles e-mails and other day to day things for $3 an hour. I do not own or rent any property in the Philippines or India and all my employees work from home from thier own computer stations.

    My problem is now I have money I have not paid tax on sat in an SKNA bank account which for the moment I can't touch and I have been making several thousand a week from my new venture and have checks I cannot cash because I would obviously be evading tax if I did as I am not registered as a company. Now you see the prediciment I am in, and I am looking for a way to setup as a business and to legally maximise my profits while minimizing tax payments.

    Thanx

    Poker Guy
    Click to expand...

    Hire an accountant they will tell you the legal ways to reduce your tax liability and what business structure will be beneficial to you.

    You don't have to register as a company to pay tax, you can be a sole trader registered with HMRC.
     
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    telemarketing_genius

  • #17
    Borobar, I think I agree with you.

    His numbers dont add up and the way he posts is inviting someone to help.... Just as soon as I send some good will money.
     
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    tehpokerguy

  • #18
    Borobar and telemarketing_genius, Sorry you two but, if asking for advice is a scam then I am guilty. I am seeking help here on setting up as a business and limiting any tax liability. As far as I know any money earned (except the sale of second hand goods) without paying tax on it is tax evasion and I am not risking it and paying money into a UK account is classed as liable for income tax.

    How do my numbers not add up? Have I posted my financials here? no and I am not going to. I was replying to the accountant's post and giving them a general layout of what I do like they asked.


    And Wizard, would I register as a sole trader? There are thousands of tax loops and many countries are against signing a tax treaty with the UK, if I register as a sole trader I don't think I would be able to exploit any of them.
     
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    Tom McClelland

    Tom McClelland

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  • #20
    tehpokerguy said:
    And Wizard, would I register as a sole trader? There are thousands of tax loops and many countries are against signing a tax treaty with the UK, if I register as a sole trader I don't think I would be able to exploit any of them.
    Click to expand...

    Any tax reduction strategy whose success is predicated on HMRC not realising what you're doing is evasion, not avoidance. It is only avoidance if the strategy would still work if HMRC were looking over your shoulder, seeing every penny that you transfer and spend, every step of the way.
     
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    QuickHomeBuyers

    QuickHomeBuyers

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    Jan 9, 2010
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  • #21
    As you have now already commited tax evasion, your options are fairly limited.
    There is a scheme with HMRC where you can declare your offshore accounts without paying 100% penalty, or you have an option to keep them anonymous like most do.

    Action is needed quick to save the rest.
     
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    jellyjelly

    Free Member
    Apr 16, 2011
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  • #23
    Hi Poker Guy,

    I think I can help a little bit, I know about IM and CPA, affiliate marketing, outsourcing etc.

    Something you might not know is that HMRC says that if the "central management and control" of a business operation is in the UK, then tax must be paid on worldwide profits.

    So in your case, central management and control is definitely in the UK! (assuming you are UK domicilied and resident). It doesn't make any difference if you outsource the work to the Philippines or India.

    Unfortunately you have already evaded tax by drawing on your Visa card from the offshore account, without declaring it.

    Going forward, the only way you can avoid paying taxes is to give up your UK residency, and move to another country where taxes are low like the Seychelles.

    For more information, see the tax guides at taxcafe.co.uk (I'm not connected with them, just have read their guides and think they are good).

    HTH!
    Jelly
     
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