Offshore Banking

[Timeless Stew]

Channel Island banks, Swiss Banks and Isle of Man banks all now pass the tax on your account to EU and some of them even pass your account details to the Uk tax man.

Does anybody has any recommendations? I am thinking of opening and account in Singapore (DBS Bank) or Hong Kong as I am going there in 8 days.

The taxman taxed my money once, that's enough. I do not like paying tax on interest or inheritance tax.

[TheBlueRaja]

Dont know mate - have you tried www.fool.co.uk? Despite they name the forums there can be quite informative when it comes to money matters.

Isnt this tax eva.., sorry, Avoidance though? (im curious...)

[Maggy J]

Originally Posted by TheBlueRaja

Dont know mate - have you tried www.fool.co.uk? Despite they name the forums there can be quite informative when it comes to money matters.

Isnt this tax eva.., sorry, Avoidance though? (im curious...)

It is but who cares..I'm sick of this government putting their grubby paws in my pocket not once or twice but sometimes three times.I don't suppose TS is even talking about any large sums of money..

[TheBlueRaja]

Originally Posted by Incognitas

It is but who cares..I'm sick of this government putting their grubby paws in my pocket not once or twice but sometimes three times.I don't suppose TS is even talking about any large sums of money..

I dont think you will get ANYBODY objecting there Incog!

[DaggaDagga]

Anyone know any good links about semi-legal ways of stopping handing over all my money for the idiots to waste? I must be the only contractor that pays tax and NI on every penny I earn. I've had enough of subsidising everyone else.

[handyman]

I'd like to know any ways of getting paid elsewhere as well

[bopdude]

Originally Posted by handyman

I'd like to know any ways of getting paid elsewhere as well

Move abroad well you asked for it, the grass isn't always greener, just prior to me leaving South Africa I was paying up to 45% paye, so it isn't really that bad here, is it

[Gareth]

Originally Posted by DaggaDagga

Anyone know any good links about semi-legal ways of stopping handing over all my money for the idiots to waste? I must be the only contractor that pays tax and NI on every penny I earn. I've had enough of subsidising everyone else.

I guess you know the routine of paying yourself a minimal wage but then awarding yourself dividends, so that you don't get stung for as much income tax/NI contributions...? All the contractors I know hardly earn anything if you look at their monthly salary

[Timeless Stew]

Yes, it is tax avoidance. I spoke to DBS in Singapore, these guys will not report (the interest earned) back to the finance authorities (UK or any other country) but they will report to a Global anti-terrorism Intelligence any international transactions over 10,000 Euros/Dollars.

Italy and 1-2 other Euro-countries have no capital gains tax. All of them have web sites in English, and it is easy to set up nominee accounts.
But I do not know any way in getting tax-free interest for your cash anywhere in Europe. We used to have the Channel Islands, but they surrendered to the frogs…

I forgot about fool, I will have a look, thanks.


Tip: Give Kent Reliance BS 100 quid


http://www.krbs.co.uk/

[Scarlett]

Originally Posted by Gareth

I guess you know the routine of paying yourself a minimal wage but then awarding yourself dividends, so that you don't get stung for as much income tax/NI contributions...? All the contractors I know hardly earn anything if you look at their monthly salary

That's what I do now, however your contract neeeds to be IR35 compliant and the job you do makes a difference as well. Try contacting JSAand ask them about chorus management services.

You will get a questionare regarding your job and they will need to see a copy of your contract as well. IIRC the questionare is about 7/8 questions long and centers on wherther you are working a job that some one could do or providing a service to the company you work for. As I provide a service to 8 or so different departments (despite what my contract says my duties might be!) I can use the min wage and dividends method above.

The only downside is that you'll have to fill outa tax return at the end of the year and pay tax based on that but JSA have a spready that will give you a rough ide of what you'll be paying. I put about double that aside each month so that I'll have a nice sum left at the end of the year as well

---------- Post added at 08:36 ---------- Previous post was at 08:30 ----------

Originally Posted by Timeless Stew

Yes, it is tax avoidance. I spoke to DBS in Singapore, these guys will not report (the interest earned) back to the finance authorities (UK or any other country) but they will report to a Global anti-terrorism Intelligence any international transactions over 10,000 Euros/Dollars.

Italy and 1-2 other Euro-countries have no capital gains tax. All of them have web sites in English, and it is easy to set up nominee accounts.
But I do not know any way in getting tax-free interest for your cash anywhere in Europe. We used to have the Channel Islands, but they surrendered to the frogs…

I forgot about fool, I will have a look, thanks.


Tip: Give Kent Reliance BS 100 quid


http://www.krbs.co.uk/

If you don't need the money right now then ISA's are Tax free interest. I'd avoid trying tax avoidence unless your a large multi national company. The tax man tends to work on the assumption that your dodging tax and then trys to find out how. They take a dim view if they find out you are deliberatly dodgy tax.

Oh and you don't want to have problems with the tax office. They screwed up my tax from 2 years ago and my tax code is 056 for this year because they decided I owe them £900. I sent of all the details as to why its wrong (and I'm actually owed £100) but its been going on for 8 months now!!!! jez all they did was double count one set of figures, apparently basic maths is a bit beyond them.

[spiderplant]

Originally Posted by Timeless Stew

Tip: Give Kent Reliance BS 100 quid
http://www.krbs.co.uk/

Why - for having the most OTT website?

If you have a mortgage, you can also save tax-free by offsetting your savings against your mortgage.

edit: I take it back - I'm pretty impressed by that website

[Timeless Stew]

Originally Posted by spiderplant

Why - for having the most OTT website?

Carpetbagging mate! The CEO of KRKS said that he will not oppose a conversion, it is in the second page after the OTT intro!

Yes, I have used all possible ISA allowances.

[Maggy J]

The only reliable way I know to deny the taxman any money is not to smoke or drink and to keep my purchases of VAT heavy products to a minimum.Makes for a boring existance though.
Just about the only other way you can legally avoid tax it would appear is to be under 16.

If death and taxes are inevitable then so is tax avoidance.I also intend to die in poverty so as to make the system pay for my disposal..

[DaggaDagga]

I've heard of contractors paying min wage (or a quid above it to avoid investigation), then taking the rest in dividends. How does this work in practice, i.e. percentage terms?

At the moment, I'm into the 40% tax bracket so, on the top end of my earnings, I pay 40% tax + national insurance (tax by another name). I'm handing over a good half of my money at the top end. Communism!

How would the money look if I was to do dividends?

I'm employed by my agency, who just give me a payslip and pay into my account. They do the sums for me. I've been told that the wording of my contract is IR35 compliant, and I can opt to get the money tax free into a limited company.

Any ideas on how much I should be handing over? At the moment, I may aswell not bother working or I could just throw a load of cash in the air in the high street!

I've looked into this before, but I always get too confused by all the figures and costs, then give up. If the figures look good then I guess I should shove myself into it.

[Timeless Stew]

Originally Posted by DaggaDagga

I've heard of contractors paying min wage (or a quid above it to avoid investigation), then taking the rest in dividends. How does this work in practice, i.e. percentage terms?

At the moment, I'm into the 40% tax bracket so, on the top end of my earnings, I pay 40% tax + national insurance (tax by another name). I'm handing over a good half of my money at the top end. Communism!

How would the money look if I was to do dividends?

I too give 50% of my pay packet to Gordon Brown.

A legal way of giving you extra money without paying tax is to create an expenses account for you: you can then use it to entertain colleagues, research trips to exotic places to research new ways of doing what you are doing, purchasing hardware, taxis, trains etc etc Endless receipts though...




I dunno about dividends