Not illegal, but probably unethical?

JonnyBravo

Dithering_Dad wrote: »

I posted the dividend calculation on the link that michaels posted at the top of this page. I got a right roasting off a coupel of regulars on that board. I won't be going back on the benefits board again! Jeez!:eek:

Too much even for you DD?


:rotfl:

neverdespairgirl

Dithering_Dad wrote: »

I will have funded my kids through a goodchildhood, paid them thru university and they will hopefully have their own decent incomes and won't be looking for (yet another) handout from Mum and Dad.

I feel the same. I know my Dad has a large SIPP, and I hope he and my Mama blow the lot in the style to which they'd soon become accustomed.

They fed, clothed, housed and educated me, supported and loved me, and I don't need or want a huge "inheritance".

JonnyBravo

neverdespairgirl wrote: »

No man in this country is under the smallest obligation, moral or other, so to arrange his legal relations to his business or to his property as to enable the Inland Revenue to put the largest possible shovel into his stores.

Ayrshire Pullman Motor Services and Ritchie v. IRC (1929) 14 TC 754

It would seem as if the law gives you the green light to morally questionable approaches to your tax, so long as it's legal obviously.
Of course, I'm far from certain the law would be able to determine what is morally correct anyhow.

Dithering_Dad

JonnyBravo wrote: »

Too much even for you DD?


:rotfl:

I'm actually quite a sensitive soul. I do get quite upset when people make up rumours about me, such as !!!!!!'s 'sock puppet' crap. I am never afraid to post whatever I want on this 'DD' logon, why would I need others? I'm also not afraid to post left-field comments that have zero support and so don't need 'sock puppets' or alter-egos to support or 'thank' button me.

I am happy to be attacked on my financial ideas, but obviously I'm so brilliant financially that people have to make stuff up about me in order to 'have a pop'

Dithering_Dad

neverdespairgirl wrote: »

I feel the same. I know my Dad has a large SIPP, and I hope he and my Mama blow the lot in the style to which they'd soon become accustomed.

They fed, clothed, housed and educated me, supported and loved me, and I don't need or want a huge "inheritance".

I never understand why people would choose a riskier and possibly less efficient retirement vehicle just because they want to 'leave something for the kids'. Blimming heck, is leaving behind a mortgage free house and bits of savings and providing an education, decent upbringing and unconditional love not enough that they have to beggar themselves in retirement to make sure that little Johnny and little Sally (who incidently are now in their 40's or 50's) are left something?

Crazy.

Mary_Hartnell

Surely step one is to set up your holding company in the Caymen Islands.
Your holding company holds all your "intellectual" property.
Here in the UK, you buy a company from someone who agrees to "disappear" back to some (say) former colony.
This company employs you to do the work.
Every year the holding company remembers that you have to pay "x" in exchange for the patents, copyrights, consultancy fees .............that Mr Nemo has used to enable you to earn all that money for the UK subsidiary.
Eventually the West Indian company gets so rich that it buys a yacht.
By now it is time for you to retire, so the UK subsidiary makes you redundant, you load your worldly possessions onto the yacht and spend your retirement pottering round the Caribbean and hob nobing with cocaine smugglers.

Have I been watching too many James Bond films?

Dithering_Dad

Mary_Hartnell wrote: »

Surely step one is to set up your holding company in the Caymen Islands.
Your holding company holds all your "intellectual" property.
Here in the UK, you buy a company from someone who agrees to "disappear" back to some (say) former colony.
This company employs you to do the work.
Every year the holding company remembers that you have to pay "x" in exchange for the patents, copyrights, consultancy fees .............that Mr Nemo has used to enable you to earn all that money for the UK subsidiary.
Eventually the West Indian company gets so rich that it buys a yacht.
By now it is time for you to retire, so the UK subsidiary makes you redundant, you load your worldly possessions onto the yacht and spend your retirement pottering round the Caribbean and hob nobing with cocaine smugglers.

Have I been watching too many James Bond films?

The company would have to supply an Aston Martin with missiles, bulletproof screens and a tire shredding device for it to be in the realms of JB.

Not a bad idea for a company structure though

stamboy

Dithering_Dad wrote: »

It doesn't make sense to pay yourself £11k and then not take dividends because the dividends upto the 40% tax threshold (about £34k) are tax free. If someone did just pay themselves the £11k for 5 years, they would have lost out on earning £115k tax free.

To really play the system, a contractor should pay himself £11k in salary then £26k in dividends. He would then only pay tax and NI on the £11k salary - so for an income of £39,888, you'd pay £1601 in tax.

You'd then also qualify for tax credits of £547.50 per annum.

So to recap, income (inl. tax credit): £40435.50
Tax & NI: £1601.00

Total Net Earnings: £38,834.

If you were a normal PAYE person earning £39,888, the sums would be:
Income (inc. tax credits): £40435.50
Tax & NI: £10,230
Total Net Earnings: £28,604.

It really does pay to play the system. :eek:

But aren't you forgetting the fact that the company will have to pay corporation tax on any profits?

huntersc

If you're earning that kind of money and want to be unethical by denying the state of income then there are better ways than that and ones that will see you keep a lot more of your money. Why mess about with £5k here and there on tax credits?? Go the whole way.

Kenny4315

Dithering_Dad wrote: »

Don't you love SAP Transactions. You'll know hundreds of them soon and be able to thrill people at dinner parties with your new language.

CO11n - Single screen entry of confirmations
MIGO - Goods Receipts.

I'm in HR so just tend to use PA30, PA03 and SE38 with RPCALCG0.

What fun.

Are you an SAP consultant ??

If not why not try SPRO .. and see if they have locked the config menu ?