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The Politics of Tax thread

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  • Off_it said:

    Fiiish said:

    bobmunro said:

    Fiiish said:

    He instead twisted Fink's words regarding 'everyone avoids tax in some way', which is a fair point given ISAs, pensions and trusts are all legitimate tax avoidance instruments that ordinary people use everyday, which was the point Fink was making.

    Not sure I agree with that. Is buying food tax avoidance because it is zero rated? - children's clothing?

    I wouldn't lump in VAT because people generally don't buy items just because they're zero-rated and it's an incentive to buy good food and keep your kids dressed.
    Ah, you might think that, and it would be nice if it were the case, but have a wild guess at which ONE of these things has VAT on it when you buy it in the supermarket?

    Iceland's Deep Pan Donner Kebab Pizza
    Family-size bag of Doritos
    Ginsters Cornish Pasty
    Rustlers Microwavable Quarter Pounder with cheese
    500ml bottle of Buxtons mineral water


    Edit: have just made myself hungry now typing that - apart from the water, of course!
    I'm guessing the Doritos on the basis that they are a "luxury" snack rather than essential nosh?
  • cafcfan said:

    Off_it said:

    Fiiish said:

    bobmunro said:

    Fiiish said:

    He instead twisted Fink's words regarding 'everyone avoids tax in some way', which is a fair point given ISAs, pensions and trusts are all legitimate tax avoidance instruments that ordinary people use everyday, which was the point Fink was making.

    Not sure I agree with that. Is buying food tax avoidance because it is zero rated? - children's clothing?

    I wouldn't lump in VAT because people generally don't buy items just because they're zero-rated and it's an incentive to buy good food and keep your kids dressed.
    Ah, you might think that, and it would be nice if it were the case, but have a wild guess at which ONE of these things has VAT on it when you buy it in the supermarket?

    Iceland's Deep Pan Donner Kebab Pizza
    Family-size bag of Doritos
    Ginsters Cornish Pasty
    Rustlers Microwavable Quarter Pounder with cheese
    500ml bottle of Buxtons mineral water


    Edit: have just made myself hungry now typing that - apart from the water, of course!
    I'm guessing the Doritos on the basis that they are a "luxury" snack rather than essential nosh?
    Made of corn, not potato - so zero rated.
  • Boom said:

    Off_it said:

    Fiiish said:

    bobmunro said:

    Fiiish said:

    He instead twisted Fink's words regarding 'everyone avoids tax in some way', which is a fair point given ISAs, pensions and trusts are all legitimate tax avoidance instruments that ordinary people use everyday, which was the point Fink was making.

    Not sure I agree with that. Is buying food tax avoidance because it is zero rated? - children's clothing?

    I wouldn't lump in VAT because people generally don't buy items just because they're zero-rated and it's an incentive to buy good food and keep your kids dressed.
    Ah, you might think that, and it would be nice if it were the case, but have a wild guess at which ONE of these things has VAT on it when you buy it in the supermarket?

    Iceland's Deep Pan Donner Kebab Pizza
    Family-size bag of Doritos
    Ginsters Cornish Pasty
    Rustlers Microwavable Quarter Pounder with cheese
    500ml bottle of Buxtons mineral water


    Edit: have just made myself hungry now typing that - apart from the water, of course!
    Water -what do I win? Deep Pan Donner Kebab Pizza hopefully!
    You win a nice refreshing pint after work, if you answer your email!
  • cafcfan said:

    Off_it said:

    Fiiish said:

    bobmunro said:

    Fiiish said:

    He instead twisted Fink's words regarding 'everyone avoids tax in some way', which is a fair point given ISAs, pensions and trusts are all legitimate tax avoidance instruments that ordinary people use everyday, which was the point Fink was making.

    Not sure I agree with that. Is buying food tax avoidance because it is zero rated? - children's clothing?

    I wouldn't lump in VAT because people generally don't buy items just because they're zero-rated and it's an incentive to buy good food and keep your kids dressed.
    Ah, you might think that, and it would be nice if it were the case, but have a wild guess at which ONE of these things has VAT on it when you buy it in the supermarket?

    Iceland's Deep Pan Donner Kebab Pizza
    Family-size bag of Doritos
    Ginsters Cornish Pasty
    Rustlers Microwavable Quarter Pounder with cheese
    500ml bottle of Buxtons mineral water


    Edit: have just made myself hungry now typing that - apart from the water, of course!
    I'm guessing the Doritos on the basis that they are a "luxury" snack rather than essential nosh?

    Boom got it. Mind you, it's what he does for a living - advising people how to avoid and minimise their tax bills - the scumbag, so he kinda had an advantage. Even then, I bet he had to look it up!
  • Off_it said:

    Fiiish said:

    bobmunro said:

    Fiiish said:

    He instead twisted Fink's words regarding 'everyone avoids tax in some way', which is a fair point given ISAs, pensions and trusts are all legitimate tax avoidance instruments that ordinary people use everyday, which was the point Fink was making.

    Not sure I agree with that. Is buying food tax avoidance because it is zero rated? - children's clothing?

    I wouldn't lump in VAT because people generally don't buy items just because they're zero-rated and it's an incentive to buy good food and keep your kids dressed.
    Ah, you might think that, and it would be nice if it were the case, but have a wild guess at which ONE of these things has VAT on it when you buy it in the supermarket?

    Iceland's Deep Pan Donner Kebab Pizza
    Family-size bag of Doritos
    Ginsters Cornish Pasty
    Rustlers Microwavable Quarter Pounder with cheese
    500ml bottle of Buxtons mineral water


    Edit: have just made myself hungry now typing that - apart from the water, of course!
    I should have added 'in theory', I am well aware that a lot of junk food is zero-rated. It is pretty incredible the kind of things that are zero-rated, although I'd guess that things like frozen ready meals and pizzas are a Godsend for those physically unable to be able to cook a meal from scratch or who are housebound.

    I did read the other day that razor blades are Zero-rated but tampons are levied with a 'luxury' tax, despite shaving being largely cosmetic whereas women don't have much choice regarding their bodily functions. That doesn't seem right at all.
  • Fiiish said:

    Off_it said:

    Fiiish said:

    bobmunro said:

    Fiiish said:

    He instead twisted Fink's words regarding 'everyone avoids tax in some way', which is a fair point given ISAs, pensions and trusts are all legitimate tax avoidance instruments that ordinary people use everyday, which was the point Fink was making.

    Not sure I agree with that. Is buying food tax avoidance because it is zero rated? - children's clothing?

    I wouldn't lump in VAT because people generally don't buy items just because they're zero-rated and it's an incentive to buy good food and keep your kids dressed.
    Ah, you might think that, and it would be nice if it were the case, but have a wild guess at which ONE of these things has VAT on it when you buy it in the supermarket?

    Iceland's Deep Pan Donner Kebab Pizza
    Family-size bag of Doritos
    Ginsters Cornish Pasty
    Rustlers Microwavable Quarter Pounder with cheese
    500ml bottle of Buxtons mineral water


    Edit: have just made myself hungry now typing that - apart from the water, of course!
    I should have added 'in theory', I am well aware that a lot of junk food is zero-rated. It is pretty incredible the kind of things that are zero-rated, although I'd guess that things like frozen ready meals and pizzas are a Godsend for those physically unable to be able to cook a meal from scratch or who are housebound.

    I did read the other day that razor blades are Zero-rated but tampons are levied with a 'luxury' tax, despite shaving being largely cosmetic whereas women don't have much choice regarding their bodily functions. That doesn't seem right at all.
    Nah mate, it's not right. Razors and razor blades are standard rated - women's sanitary products are at 5% VAT (although this wasn't always the case).

    Must admit, I never thought I would be typing "women's sanitary products" on a football message board. Ain't life a strange beast!
  • Off_it said:

    Fiiish said:

    Off_it said:

    Fiiish said:

    bobmunro said:

    Fiiish said:

    He instead twisted Fink's words regarding 'everyone avoids tax in some way', which is a fair point given ISAs, pensions and trusts are all legitimate tax avoidance instruments that ordinary people use everyday, which was the point Fink was making.

    Not sure I agree with that. Is buying food tax avoidance because it is zero rated? - children's clothing?

    I wouldn't lump in VAT because people generally don't buy items just because they're zero-rated and it's an incentive to buy good food and keep your kids dressed.
    Ah, you might think that, and it would be nice if it were the case, but have a wild guess at which ONE of these things has VAT on it when you buy it in the supermarket?

    Iceland's Deep Pan Donner Kebab Pizza
    Family-size bag of Doritos
    Ginsters Cornish Pasty
    Rustlers Microwavable Quarter Pounder with cheese
    500ml bottle of Buxtons mineral water


    Edit: have just made myself hungry now typing that - apart from the water, of course!
    I should have added 'in theory', I am well aware that a lot of junk food is zero-rated. It is pretty incredible the kind of things that are zero-rated, although I'd guess that things like frozen ready meals and pizzas are a Godsend for those physically unable to be able to cook a meal from scratch or who are housebound.

    I did read the other day that razor blades are Zero-rated but tampons are levied with a 'luxury' tax, despite shaving being largely cosmetic whereas women don't have much choice regarding their bodily functions. That doesn't seem right at all.
    Nah mate, it's not right. Razors and razor blades are standard rated - women's sanitary products are at 5% VAT (although this wasn't always the case).

    Must admit, I never thought I would be typing "women's sanitary products" on a football message board. Ain't life a strange beast!
    Thought that was weird. It did come from an article that used that very example that VAT was 'sexist' because men's toiletries are zero-rated and ladies' products are not. Still, a frozen kebab pizza is exempt and sanitary essentials are not? That's a much better example to be honest.
  • Only reason NI and income tax are not combined is because it would increase headline rate of income tax. Also allows employers to be taxed for employing people.
    It's politics not common sense
    .

    Cue the rise of freelancers... It is madness to tax employers who are taking people off the dole... Abolish the NI and you may see more people being employed...
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  • Interesting...this could catch on, at least among those who are not PAYE

    http://www.theguardian.com/business/2015/feb/25/emma-thompson-greg-wise-tax-boycott-hsbc-scandal

    HMRC can forcibly seize or freeze assets/accounts in order to settle tax debts and in fact do this regularly instead of pursuing criminal convictions, so I can't see that going very far. Think it is more likely the HMRC will go down the more practical route of forced financial punishment than martyr these idiots with a custodial sentence. Jail or convictions are generally reserved for those with no assets to seize, unless these two intend to sell everything they own, live on the streets and give all their money away or put it in an account that can't be accessed by the taxman. Or they can move abroad just like the rest of those who pontificate about the tax system but don't actually pay anything.

    What a surprise, socialists who don't understand how a country's finances work.
  • Interesting...this could catch on, at least among those who are not PAYE

    http://www.theguardian.com/business/2015/feb/25/emma-thompson-greg-wise-tax-boycott-hsbc-scandal

    That article reads more like a Daily Mash spoof than a real report!
  • Fiiish said:

    Interesting...this could catch on, at least among those who are not PAYE

    http://www.theguardian.com/business/2015/feb/25/emma-thompson-greg-wise-tax-boycott-hsbc-scandal

    HMRC can forcibly seize or freeze assets/accounts in order to settle tax debts and in fact do this regularly instead of pursuing criminal convictions, so I can't see that going very far. Think it is more likely the HMRC will go down the more practical route of forced financial punishment than martyr these idiots with a custodial sentence. Jail or convictions are generally reserved for those with no assets to seize, unless these two intend to sell everything they own, live on the streets and give all their money away or put it in an account that can't be accessed by the taxman. Or they can move abroad just like the rest of those who pontificate about the tax system but don't actually pay anything.

    What a surprise, socialists who don't understand how a country's finances work.
    I Hope you don't refer to me, since I pay UK personal income tax, corporate tax on a company which is essentially me, and have fully paid up voluntary NI contributions. And I am on the electoral roll, where the excellent Ed Davey will get my vote in May.
  • Fiiish said:

    Interesting...this could catch on, at least among those who are not PAYE

    http://www.theguardian.com/business/2015/feb/25/emma-thompson-greg-wise-tax-boycott-hsbc-scandal

    HMRC can forcibly seize or freeze assets/accounts in order to settle tax debts and in fact do this regularly instead of pursuing criminal convictions, so I can't see that going very far. Think it is more likely the HMRC will go down the more practical route of forced financial punishment than martyr these idiots with a custodial sentence. Jail or convictions are generally reserved for those with no assets to seize, unless these two intend to sell everything they own, live on the streets and give all their money away or put it in an account that can't be accessed by the taxman. Or they can move abroad just like the rest of those who pontificate about the tax system but don't actually pay anything.

    What a surprise, socialists who don't understand how a country's finances work.
    I Hope you don't refer to me, since I pay UK personal income tax, corporate tax on a company which is essentially me, and have fully paid up voluntary NI contributions. And I am on the electoral roll, where the excellent Ed Davey will get my vote in May.
    Apologies, I was absolutely not referring to you. I was referring to various celebrities and millionaires who like to chip in on the UK tax debate from an overseas mansion.
  • Fiiish said:

    Interesting...this could catch on, at least among those who are not PAYE

    http://www.theguardian.com/business/2015/feb/25/emma-thompson-greg-wise-tax-boycott-hsbc-scandal

    HMRC can forcibly seize or freeze assets/accounts in order to settle tax debts and in fact do this regularly instead of pursuing criminal convictions, so I can't see that going very far. Think it is more likely the HMRC will go down the more practical route of forced financial punishment than martyr these idiots with a custodial sentence. Jail or convictions are generally reserved for those with no assets to seize, unless these two intend to sell everything they own, live on the streets and give all their money away or put it in an account that can't be accessed by the taxman. Or they can move abroad just like the rest of those who pontificate about the tax system but don't actually pay anything.

    What a surprise, socialists who don't understand how a country's finances work.
    I Hope you don't refer to me, since I pay UK personal income tax, corporate tax on a company which is essentially me, and have fully paid up voluntary NI contributions. And I am on the electoral roll, where the excellent Ed Davey will get my vote in May.
    Sounds like tax avoidance to me.
  • Fiiish said:

    Fiiish said:

    Interesting...this could catch on, at least among those who are not PAYE

    http://www.theguardian.com/business/2015/feb/25/emma-thompson-greg-wise-tax-boycott-hsbc-scandal

    HMRC can forcibly seize or freeze assets/accounts in order to settle tax debts and in fact do this regularly instead of pursuing criminal convictions, so I can't see that going very far. Think it is more likely the HMRC will go down the more practical route of forced financial punishment than martyr these idiots with a custodial sentence. Jail or convictions are generally reserved for those with no assets to seize, unless these two intend to sell everything they own, live on the streets and give all their money away or put it in an account that can't be accessed by the taxman. Or they can move abroad just like the rest of those who pontificate about the tax system but don't actually pay anything.

    What a surprise, socialists who don't understand how a country's finances work.
    I Hope you don't refer to me, since I pay UK personal income tax, corporate tax on a company which is essentially me, and have fully paid up voluntary NI contributions. And I am on the electoral roll, where the excellent Ed Davey will get my vote in May.
    Apologies, I was absolutely not referring to you. I was referring to various celebrities and millionaires who like to chip in on the UK tax debate from an overseas mansion.
    How do you know he doesn't live in a mansion?
  • Fiiish said:

    Fiiish said:

    Interesting...this could catch on, at least among those who are not PAYE

    http://www.theguardian.com/business/2015/feb/25/emma-thompson-greg-wise-tax-boycott-hsbc-scandal

    HMRC can forcibly seize or freeze assets/accounts in order to settle tax debts and in fact do this regularly instead of pursuing criminal convictions, so I can't see that going very far. Think it is more likely the HMRC will go down the more practical route of forced financial punishment than martyr these idiots with a custodial sentence. Jail or convictions are generally reserved for those with no assets to seize, unless these two intend to sell everything they own, live on the streets and give all their money away or put it in an account that can't be accessed by the taxman. Or they can move abroad just like the rest of those who pontificate about the tax system but don't actually pay anything.

    What a surprise, socialists who don't understand how a country's finances work.
    I Hope you don't refer to me, since I pay UK personal income tax, corporate tax on a company which is essentially me, and have fully paid up voluntary NI contributions. And I am on the electoral roll, where the excellent Ed Davey will get my vote in May.
    Apologies, I was absolutely not referring to you. I was referring to various celebrities and millionaires who like to chip in on the UK tax debate from an overseas mansion.
    No worries, I'm just flouting my self-righteousness, especially now that Offy is back to police things:-)

  • To be fair Prague is a celebrity on this forum and is known to UK Border Force ;)
  • Fiiish said:

    Interesting...this could catch on, at least among those who are not PAYE

    http://www.theguardian.com/business/2015/feb/25/emma-thompson-greg-wise-tax-boycott-hsbc-scandal

    HMRC can forcibly seize or freeze assets/accounts in order to settle tax debts and in fact do this regularly instead of pursuing criminal convictions, so I can't see that going very far. Think it is more likely the HMRC will go down the more practical route of forced financial punishment than martyr these idiots with a custodial sentence. Jail or convictions are generally reserved for those with no assets to seize, unless these two intend to sell everything they own, live on the streets and give all their money away or put it in an account that can't be accessed by the taxman. Or they can move abroad just like the rest of those who pontificate about the tax system but don't actually pay anything.

    What a surprise, socialists who don't understand how a country's finances work.
    I Hope you don't refer to me, since I pay UK personal income tax, corporate tax on a company which is essentially me, and have fully paid up voluntary NI contributions. And I am on the electoral roll, where the excellent Ed Davey will get my vote in May.
    So why have a company, that is essentially you ? Usually one of the reasons is to pay less tax is it not ?
  • Fiiish said:

    Interesting...this could catch on, at least among those who are not PAYE

    http://www.theguardian.com/business/2015/feb/25/emma-thompson-greg-wise-tax-boycott-hsbc-scandal

    HMRC can forcibly seize or freeze assets/accounts in order to settle tax debts and in fact do this regularly instead of pursuing criminal convictions, so I can't see that going very far. Think it is more likely the HMRC will go down the more practical route of forced financial punishment than martyr these idiots with a custodial sentence. Jail or convictions are generally reserved for those with no assets to seize, unless these two intend to sell everything they own, live on the streets and give all their money away or put it in an account that can't be accessed by the taxman. Or they can move abroad just like the rest of those who pontificate about the tax system but don't actually pay anything.

    What a surprise, socialists who don't understand how a country's finances work.
    I Hope you don't refer to me, since I pay UK personal income tax, corporate tax on a company which is essentially me, and have fully paid up voluntary NI contributions. And I am on the electoral roll, where the excellent Ed Davey will get my vote in May.
    So why have a company, that is essentially you ? Usually one of the reasons is to pay less tax is it not ?
    I'll let Prague answer his own case as I'm not in the loop as to what his profession actually is but in a lot of cases it's making sure you're paying the right kinds of tax rather than avoiding or lowering it. For example if you're offering VAT-able services or need to offset business expenses against income relating to your work. Apart from sole traders whose business is minimal, if you're self-employed you'll usually set up a business to transact through, even if you're the sole employee.
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  • Fiiish said:

    Interesting...this could catch on, at least among those who are not PAYE

    http://www.theguardian.com/business/2015/feb/25/emma-thompson-greg-wise-tax-boycott-hsbc-scandal

    HMRC can forcibly seize or freeze assets/accounts in order to settle tax debts and in fact do this regularly instead of pursuing criminal convictions, so I can't see that going very far. Think it is more likely the HMRC will go down the more practical route of forced financial punishment than martyr these idiots with a custodial sentence. Jail or convictions are generally reserved for those with no assets to seize, unless these two intend to sell everything they own, live on the streets and give all their money away or put it in an account that can't be accessed by the taxman. Or they can move abroad just like the rest of those who pontificate about the tax system but don't actually pay anything.

    What a surprise, socialists who don't understand how a country's finances work.
    I Hope you don't refer to me, since I pay UK personal income tax, corporate tax on a company which is essentially me, and have fully paid up voluntary NI contributions. And I am on the electoral roll, where the excellent Ed Davey will get my vote in May.
    So why have a company, that is essentially you ? Usually one of the reasons is to pay less tax is it not ?
    Not in my modest case. The main reason was that - even now - in CZ there is no sensible provision for personal pensions. The UK company has been the vehicle to build up a modest private pension pot. Actually we are in the process of closing it, because my Czech biz shows no sign of returning to pre crisis levels.

    I actually like the idea of paying tax in both countries since it allows me to sound off in both:-) I've probably paid more than I needed to, but not so much that it's worth worrying about

  • Aah I see.
  • Sounds like Prague has some fairly "vanilla" arrangements in place.

  • Fiiish said:

    Fiiish said:

    Interesting...this could catch on, at least among those who are not PAYE

    http://www.theguardian.com/business/2015/feb/25/emma-thompson-greg-wise-tax-boycott-hsbc-scandal

    HMRC can forcibly seize or freeze assets/accounts in order to settle tax debts and in fact do this regularly instead of pursuing criminal convictions, so I can't see that going very far. Think it is more likely the HMRC will go down the more practical route of forced financial punishment than martyr these idiots with a custodial sentence. Jail or convictions are generally reserved for those with no assets to seize, unless these two intend to sell everything they own, live on the streets and give all their money away or put it in an account that can't be accessed by the taxman. Or they can move abroad just like the rest of those who pontificate about the tax system but don't actually pay anything.

    What a surprise, socialists who don't understand how a country's finances work.
    I Hope you don't refer to me, since I pay UK personal income tax, corporate tax on a company which is essentially me, and have fully paid up voluntary NI contributions. And I am on the electoral roll, where the excellent Ed Davey will get my vote in May.
    So why have a company, that is essentially you ? Usually one of the reasons is to pay less tax is it not ?
    I'll let Prague answer his own case as I'm not in the loop as to what his profession actually is but in a lot of cases it's making sure you're paying the right kinds of tax rather than avoiding or lowering it. For example if you're offering VAT-able services or need to offset business expenses against income relating to your work. Apart from sole traders whose business is minimal, if you're self-employed you'll usually set up a business to transact through, even if you're the sole employee.
    LOL! That's a new one on me, setting up a company to make sure you pay all the taxes you need to!
  • Fiiish said:

    Interesting...this could catch on, at least among those who are not PAYE

    http://www.theguardian.com/business/2015/feb/25/emma-thompson-greg-wise-tax-boycott-hsbc-scandal

    HMRC can forcibly seize or freeze assets/accounts in order to settle tax debts and in fact do this regularly instead of pursuing criminal convictions, so I can't see that going very far. Think it is more likely the HMRC will go down the more practical route of forced financial punishment than martyr these idiots with a custodial sentence. Jail or convictions are generally reserved for those with no assets to seize, unless these two intend to sell everything they own, live on the streets and give all their money away or put it in an account that can't be accessed by the taxman. Or they can move abroad just like the rest of those who pontificate about the tax system but don't actually pay anything.

    What a surprise, socialists who don't understand how a country's finances work.
    I Hope you don't refer to me, since I pay UK personal income tax, corporate tax on a company which is essentially me, and have fully paid up voluntary NI contributions. And I am on the electoral roll, where the excellent Ed Davey will get my vote in May.
    How does that work Prague? (Please don't take that tone wrong; I'm certainly not intending that in an accusatory tone - more out of curiousity)

    When I was offered some contract work abroad (but EU based) previously, I remember being confused as to what I'd have to do. In the end I made an arrangement to be "employed" by a colleague - purely to cut down on admin and deciphering local legislation - although it was all academic as it fell through.

    I guess in theory you're a UK company that happens to be selling it's services abroad; but does that mean tax in two places? Although I know some countries have double taxation agreements with HMRC?

    Maybe I'll just google it actually ;)
  • Off_it said:

    Fiiish said:

    Fiiish said:

    Interesting...this could catch on, at least among those who are not PAYE

    http://www.theguardian.com/business/2015/feb/25/emma-thompson-greg-wise-tax-boycott-hsbc-scandal

    HMRC can forcibly seize or freeze assets/accounts in order to settle tax debts and in fact do this regularly instead of pursuing criminal convictions, so I can't see that going very far. Think it is more likely the HMRC will go down the more practical route of forced financial punishment than martyr these idiots with a custodial sentence. Jail or convictions are generally reserved for those with no assets to seize, unless these two intend to sell everything they own, live on the streets and give all their money away or put it in an account that can't be accessed by the taxman. Or they can move abroad just like the rest of those who pontificate about the tax system but don't actually pay anything.

    What a surprise, socialists who don't understand how a country's finances work.
    I Hope you don't refer to me, since I pay UK personal income tax, corporate tax on a company which is essentially me, and have fully paid up voluntary NI contributions. And I am on the electoral roll, where the excellent Ed Davey will get my vote in May.
    So why have a company, that is essentially you ? Usually one of the reasons is to pay less tax is it not ?
    I'll let Prague answer his own case as I'm not in the loop as to what his profession actually is but in a lot of cases it's making sure you're paying the right kinds of tax rather than avoiding or lowering it. For example if you're offering VAT-able services or need to offset business expenses against income relating to your work. Apart from sole traders whose business is minimal, if you're self-employed you'll usually set up a business to transact through, even if you're the sole employee.
    LOL! That's a new one on me, setting up a company to make sure you pay all the taxes you need to!
    All he is saying (I think) is that if you have, say, a consultancy type business it is a difficult call whether to operate as a sole trader or a limited company.
  • LuckyReds said:

    Fiiish said:

    Interesting...this could catch on, at least among those who are not PAYE

    http://www.theguardian.com/business/2015/feb/25/emma-thompson-greg-wise-tax-boycott-hsbc-scandal

    HMRC can forcibly seize or freeze assets/accounts in order to settle tax debts and in fact do this regularly instead of pursuing criminal convictions, so I can't see that going very far. Think it is more likely the HMRC will go down the more practical route of forced financial punishment than martyr these idiots with a custodial sentence. Jail or convictions are generally reserved for those with no assets to seize, unless these two intend to sell everything they own, live on the streets and give all their money away or put it in an account that can't be accessed by the taxman. Or they can move abroad just like the rest of those who pontificate about the tax system but don't actually pay anything.

    What a surprise, socialists who don't understand how a country's finances work.
    I Hope you don't refer to me, since I pay UK personal income tax, corporate tax on a company which is essentially me, and have fully paid up voluntary NI contributions. And I am on the electoral roll, where the excellent Ed Davey will get my vote in May.
    How does that work Prague? (Please don't take that tone wrong; I'm certainly not intending that in an accusatory tone - more out of curiousity)

    When I was offered some contract work abroad (but EU based) previously, I remember being confused as to what I'd have to do. In the end I made an arrangement to be "employed" by a colleague - purely to cut down on admin and deciphering local legislation - although it was all academic as it fell through.

    I guess in theory you're a UK company that happens to be selling it's services abroad; but does that mean tax in two places? Although I know some countries have double taxation agreements with HMRC?

    Maybe I'll just google it actually ;)
    My case isn't typical. I set up on my own in CZ as a limited company too, after leaving employment with the company I came out with, but already had the UK company set up, because I had been messing around with little projects such as karaoke in Bulgaria - my contribution to the brave New Europe - and it became a convenient vehicle. If you are working in "older" EU countries I doubt it would make sense to do what i did. But private pension contributions can be an issue when you leave the UK. Most countries have a double taxation treaty so you can choose to be taxed in the UK if you are working on contract in say Germany. You should not need to be taxed in two countries, and certainly not twice on the same income. But get professional advice (which I am not :-))
  • So Prague, how do you pay yourself from these companies? A regular salary, dividends, or a combination of both?
  • edited February 2015
    Off_it said:

    So Prague, how do you pay yourself from these companies? A regular salary, dividends, or a combination of both?

    Don't tell him Prague, he's a revenue spy. :-)
  • Off_it said:

    So Prague, how do you pay yourself from these companies? A regular salary, dividends, or a combination of both?

    Salary only now. No dividends,nowadays, they've all disappeared to pay for the global banking fraud :-(. I really don't earn much but I don't lose any sleep over it, since fortunately I kept my house in SW London on. Most important financial decision of my life.
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