Do I need to pay TAX?

jennifernil

chrismac1 wrote: »

I can't see what all the fuss is about. The guy is trying to keep his taxes down, can't see what's wrong with that - he's not trying to evade them, he's not a criminal.

Everyone in the UK pays VAT sooner or later so some of his cash will be finding its way to the Treasury.

If he is spending mainly on rent, utilities and food, very little of his spend will be incurring VAT.

He says he is not evading tax (though some are not convinced of that) though rather AVOIDING tax.

This is not an option open to most ordinary people, mainly only to the wealthy.

But he likes to live here.

The whole "UK ambience", whatever you want to call it, depends on people paying their "dues". So why should we "ordinary" people pay, yet he comes here, enjoys it, but doesn't pay?

Are you surprised the rest of us have little sympathy?

My OH pays tax in 2 countries, declares all his income. When he got tax refunded from abroad, he sent it to HMRC (having claimed double taxation relief). They then went back and charged him £129.13 in interest, for not handing over money that he did not even have at the time!

How is that right? Logic says it isn't, but that is the law. If he had not told them, they would not have known! He is not British, has no vote, yet pays plenty tax.

The tax regs may not be fair in our eyes, but those are the regs, and we have to live with them.

Randvegeta

Blobby8,

Regardless of how well you do, £7.5k + a year on bar bills to me sounds like you're either too waisted to care about the TAX, or simply an imbecile for wasting money like that.

I never came on saying I'm making thousands of pounds per day. I got out of UNI just last year.... I do okay. Better than your average graduate, put it that way. But this is besides the point.

People in this country do something called, 'Paying into a Pension' because of the TAX breaks. It's not a great deal different from what I want to do.

Like everyone else who pays into a pension, what I am doing is saving money in TAX efficient way. What a fool I must be for doing this.

Any way. Enjoy your £150 /week worth of alcohol. I'm sure the bars will be happy, just as the NHS when it comes to getting you that new liver. I'll stick to me £0 /yr alcohol bill :-)

Randvegeta

jennifernil wrote: »

If he is spending mainly on rent, utilities and food, very little of his spend will be incurring VAT.

He says he is not evading tax (though some are not convinced of that) though rather AVOIDING tax.

This is not an option open to most ordinary people, mainly only to the wealthy.

But he likes to live here.

The whole "UK ambience", whatever you want to call it, depends on people paying their "dues". So why should we "ordinary" people pay, yet he comes here, enjoys it, but doesn't pay?

Are you surprised the rest of us have little sympathy?

My OH pays tax in 2 countries, declares all his income. When he got tax refunded from abroad, he sent it to HMRC (having claimed double taxation relief). They then went back and charged him £129.13 in interest, for not handing over money that he did not even have at the time!

How is that right? Logic days it isn't, but that is the law. If he had not told them, they would not have known! He is not British, has no vote, yet pays plenty tax.

The tax regs may not be fair in our eyes, but those are the regs, and we have to live with them.

I do believe there are some 2.45 million people living off the dole in this country. They all enjoy the 'ambience' without contributing to society. Yet they are allowed to enjoy it?

The whole point of this thread is to find ways to increase the amount of money I can spend which would in turn lead to TAX revenue from VAT. You guys need to make up your mind. You cant be angry at both. I suppose you all would be happy if I paid myself the full amount available, paid the full income TAX due, and then spent it all, paying VAT on the way. Sounds like this country wants to have it's cake and eat it!

Blobby8_2

I really dont understand why you bother working , you could achieve your lifestyle on the dole

jennifernil

Randvegeta wrote: »

I do believe there are some 2.45 million people living off the dole in this country. They all enjoy the 'ambience' without contributing to society. Yet they are allowed to enjoy it?

The whole point of this thread is to find ways to increase the amount of money I can spend which would in turn lead to TAX revenue from VAT. You guys need to make up your mind. You cant be angry at both. I suppose you all would be happy if I paid myself the full amount available, paid the full income TAX due, and then spent it all, paying VAT on the way.

Mmmmmmm, like most of us do!

Life on the dole is just existing, unless of course you are one of the scroungers who cheat the rest of us.

And yes, I am sure we would all be happy if you paid tax like the rest of us!

Blobby8_2

Randvegeta wrote: »

I do believe there are some 2.45 million people living off the dole in this country. They all enjoy the 'ambience' without contributing to society. Yet they are allowed to enjoy it?

The whole point of this thread is to find ways to increase the amount of money I can spend which would in turn lead to TAX revenue from VAT. You guys need to make up your mind. You cant be angry at both. I suppose you all would be happy if I paid myself the full amount available, paid the full income TAX due, and then spent it all, paying VAT on the way. Sounds like this country wants to have it's cake and eat it!

Pretty much , yes.

antrobus

OK sorry, where was I? I see the discussion has become rather heated in my absence.

Anyway, the reason I was asking about what the company did and where it did was this;

(1) If you're sitting in the UK carrying out work which produces an income for the company, it's very possible that HMRC might view it as being taxable in the UK, irrespective of the jurisdiction in which either your employer (i.e. your company) or your customers reside. Because you are the company, and therefore your very presence in the UK is evidence that this foreign company has a permanent place of business in the UK.

(2) Generally speaking, UK income tax is due on earnings paid in respect of work carried out in the UK irrespective of where the employer is located.

In subsequent responses on this thread, you state that you are both a UK citizen and were born British. I must admit, I don't understand how you can therefore claim that you aren't domiciled in the UK given that you still live here. It might be your intention to become domiciled elsewhere in the future, but I don't think that changes the current position.

I'm not going to get moralistic over things, but you really do need to find yourself a a good accountant and get some proper professional advice. I think you've grasped the wrong end of a number of sticks, and if HMRC knew who you were and where to find you, they'd be down on you like the proverbial ton of bricks.

I think I was right the first time round;

antrobus wrote: »

I believe that the available options are as follows;

(1) keep under the radar and hope that HMRC never become aware of your existence
(2) find a decent accountant and make your peace with HMRC

Randvegeta

antrobus wrote: »

OK sorry, where was I? I see the discussion has become rather heated in my absence.

Anyway, the reason I was asking about what the company did and where it did was this;

(1) If you're sitting in the UK carrying out work which produces an income for the company, it's very possible that HMRC might view it as being taxable in the UK, irrespective of the jurisdiction in which either your employer (i.e. your company) or your customers reside. Because you are the company, and therefore your very presence in the UK is evidence that this foreign company has a permanent place of business in the UK.

(2) Generally speaking, UK income tax is due on earnings paid in respect of work carried out in the UK irrespective of where the employer is located.

In subsequent responses on this thread, you state that you are both a UK citizen and were born British. I must admit, I don't understand how you can therefore claim that you aren't domiciled in the UK given that you still live here. It might be your intention to become domiciled elsewhere in the future, but I don't think that changes the current position.

I'm not going to get moralistic over things, but you really do need to find yourself a a good accountant and get some proper professional advice. I think you've grasped the wrong end of a number of sticks, and if HMRC knew who you were and where to find you, they'd be down on you like the proverbial ton of bricks.

I think I was right the first time round;

I have already explained this. I was not born in the UK. Just because I was born with a British Passport, does not mean I am domiciled here. I have dual nationality and I choose to be domiciled in the country of which I was born. This country also happens to be where both my business and family reside. What's so difficult to understand about this?

I've been back to the UK, earning an income for a grand total of 2 months. I could quite happily send myself all of my earnings and !!!! off to some other country TAX free LEGALLY so long as I am not here for more than 6 months of the TAX year.

So what if I want to reduce my TAX liability. It's not a crime. Its not immoral and who in the right mind WANTS to pay more TAX?

Cook_County

jennifernil wrote: »

Did you read ALL of the booklet I gave the link to?

As I read it, if I understand it correctly, it looks like on the Remittance Basis you pay tax on what you send here, and if you leave more than £2000 abroad, you lose your personal allowance here.

But it seems your source of income is rather complicated, so I would suggest you get some professional advice . You cannot assume the RB way is correct here.

How do you manage to live on less than £7500 per annum?

The remittance basis is irrelevant, the business is managed and controlled from the UK. This thread is about someone evading UK tax , plain and simple, doubtless HMRC will be visiting in a day or two to get this cleared up for once and all.

Cook_County

Randvegeta wrote: »

I have already explained this. I was not born in the UK. Just because I was born with a British Passport, does not mean I am domiciled here. I have dual nationality and I choose to be domiciled in the country of which I was born. This country also happens to be where both my business and family reside. What's so difficult to understand about this?

I've been back to the UK, earning an income for a grand total of 2 months. I could quite happily send myself all of my earnings and !!!! off to some other country TAX free LEGALLY so long as I am not here for more than 6 months of the TAX year.

So what if I want to reduce my TAX liability. It's not a crime. Its not immoral and who in the right mind WANTS to pay more TAX?

Correct; but you do need to pay the right amount of tax; which is not zero in your circumstances.