Tax avoidance measures

[Boycie]

Employed am afraid, have thought about setting up my own business to write off some money against that but can't think what would be appropriate......

You plum, you'll still have to combine your paye and self employed earnings, plus possibly pay an accountant and keep books.

Just give it me,

Or

Set up a limited company, and employ a retired parent who has a large unused tax allowance, as a director, and pay them. *wink.

[eddie]

Not a lot of future in being a self-employed 'consultant' or even operating a one-man limited company in the UK because you are the mortal enemy of the taxman, despite what 'Dave' and his cronies say. I'm only speaking here from the perspective of IT, having worked in that industry for over 35 years. In the end I decided that the extra grand or so I could make being somewhat surreptitious just wasn't worth it. I went back into permanent employment as an 'employed consultant' for a large IT organisation a few years ago and let someone else worry about the tax.

 

One place where I'm told it was possible to make some serious money a few years ago (during the boom days of the Celtic Tiger) was in the Republic of Ireland - provided you went through an umbrella company. The advice I was given was to have my salary split between an Irish bank account and an off-shore account (Jersey, Isle of Man etc). The 'arrangement' between the umbrella company and the IRS was such that you only paid tax on the salary paid into the Irish bank account. I think they must have been working under the premise that it was better to get some tax as opposed to nothing. The idea made me nervous though, so I declined that option.

 

Remember this though - the Revenue and Customs organisations in the UK are one and the same, whereas a few years ago they didn't speak to each other (and neither did their systems). If you are VAT-registered AND employed (i.e. running a limited company and paying yourself a salary) then checks are made that your company turnover (via VAT returns) and income (via PAYE) do tally. It's not really something I would trust myself to fiddle - that's where a good accountant comes in.

 

Saying that, if the accountant gives you bad advice, it's you who are liable, not them.

[Subman]

Employed am afraid, have thought about setting up my own business to write off some money against that but can't think what would be appropriate......

 

Ah, not much you can do if your employed by someone else. I guess you would need to see if your current employers would be happy for you to set up your own business and continue to give you work. There are many pro's and con's in setting up your own business.

[notts_ram]

You plum, you'll still have to combine your paye and self employed earnings, plus possibly pay an accountant and keep books.

Just give it me,

Or

Set up a limited company, and employ a retired parent who has a large unused tax allowance, as a director, and pay them. *wink.

Have you got anyone in mind.....

[Boycie]

Nobody I know.