Do I need to pay TAX?

Randvegeta

Blobby8 wrote: »

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

You know that's a great idea! Get on the dole. Just what this country needs.

Cook_County, the company was established overseas. It provides services using equipment, overseas. It pays TAX, overseas. It employs staff, overseas. In what possible way do you think HMRC have the right to TAX it? Simply because I have lived in the UK for 2 months?

This is not TAX evasion at all.

Cook_County wrote: »

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

What is my TAX liability then, if you don't mind my asking. How do you go about calculating it? Please do share, if you know.

chrismac1

I agree with the OP. It sounds like he has a Permanent Establishment set up and paying taxes overseas. No doubt HMRC would like to haggle over "place of supply" but given the PE overseas the OP at least has a case - in my view pretty strong - to say that the place of supply is where the PE is.

Is this really any different to wht Hills, Ladbrokes etc. are doing with their servers based in Gibralter, Malta et al so there is no betting tax on their internet offerings?

John_Pierpoint

I love this thread.

As roughly half of us now get the majority of our income from government spending: That is via subsidies (probably the great majority of under 18's and probably a majority of pensioners. Then there is the squeezed middle, how many of them are working directly or indirectly for the government? Right the way from "barley baron" farmers via armament manufacturers and politicians to school crossing lolly pop ladies 91? I won't have a go at the self evident "scroungers" as they are just too easy a target.

The real problem is that at least the OP is bringing 7K into the country and not sending ??K out of the country like the majority of the population.

Sooner or later we are all going to have to pay the debts we are running up as a country - there is no more North Sea oil to rescue us this time round.

We might get away with Welshing (sorry Wales) some more on our debts by further devaluations and higher inflation - I expect the Treasury is working on this "soft" option at the moment.

The original poster is young enough to "do the owl run" and emigrate,
I look forward to hearing where he intends to set up his new home.

John

PS For a bit of fun here are some sums of money, where you could ask yourself if these people merit the millions in tax they have avoided, not the say 2K a year we are debating here.
[It is interesting how often property speculation (as against development) features in the list]

I think this chap actually enjoys the notoriety of being employed by his stay at home wife:
Sir Philip's fashion empire is ostensibly owned by Taveta Investments, which is in his Monaco-based wife's name. This jolly wheeze meant that Green avoided paying £285 million in tax, helping to boost the couple's personal fortune to beyond the £4 billion mark.

http://appointmetotheboard.com/id-charge-a-tenner-to-!!!!-on-you-if-i-saw-you-on-fire.htm

Randvegeta

John_Pierpoint wrote: »

I love this thread.

As roughly half of us now get the majority of our income from government spending: That is via subsidies (probably the great majority of under 18's and probably a majority of pensioners. Then there is the squeezed middle, how many of them are working directly or indirectly for the government? Right the way from "barley baron" farmers via armament manufacturers and politicians to school crossing lolly pop ladies 91? I won't have a go at the self evident "scroungers" as they are just too easy a target.

The real problem is that at least the OP is bringing 7K into the country and not sending ??K out of the country like the majority of the population.

Sooner or later we are all going to have to pay the debts we are running up as a country - there is no more North Sea oil to rescue us this time round.

We might get away with Welshing (sorry Wales) some more on our debts by further devaluations and higher inflation - I expect the Treasury is working on this "soft" option at the moment.

The original poster is young enough to "do the owl run" and emigrate,
I look forward to hearing where he intends to set up his new home.

John

PS For a bit of fun here are some sums of money, where you could ask yourself if these people merit the millions in tax they have avoided, not the say 2K a year we are debating here.
[It is interesting how often property speculation (as against development) features in the list]

I think this chap actually enjoys the notoriety of being employed by his stay at home wife:
Sir Philip's fashion empire is ostensibly owned by Taveta Investments, which is in his Monaco-based wife's name. This jolly wheeze meant that Green avoided paying £285 million in tax, helping to boost the couple's personal fortune to beyond the £4 billion mark.

http://appointmetotheboard.com/id-charge-a-tenner-to-!!!!-on-you-if-i-saw-you-on-fire.htm

Thank you! Someone who gets it.

Indeed, I am trying to bring more money into this country for the purpose of spending. I can tell you that about 10GBP /month of my income (literrally) is derived from the UK. 80% or so from the US and 15% or so from Asia, and 5% or so from the EU.

I can't believe people here believe that my wanting to bring MORE money in is a BAD thing. 20% of everything I will spend will already go to the TAX man (well.. technically it will be 16.7%...) which I think is enough thank you very much. Does spending money, particularly foreign money, not help this economy? I realize I only make a tiny fraction of a fraction of a fraction of the economy but as the old Tesco ads go, every little helps!


As for the 'emigrating' part, I'm not sure I fall under that category. Technically I am doing business out of the country of my birth, where I hope citizenship. I started the company long before I came to the UK, but as a stupid kid, I lost money for YEARS before I could make it profitable :-).

Any way, 7500 is not a lot of money. If I fail to find a legal way of sending myself more money TAX free, what I will have to do is get a part time job in the UK to subsidise the standard of living I want, or just live off the 7.5k.

I would like to point out, that as a Computer Science graduate, from one of the UK's better Universities, I could easily get a job here. Where unemployed is rife, demand for Computer Scientists is still high. I've refrained from accepting the many job offers I have recieved in the belief that some one who may need a job would get that chance to get a good one, instead of myself.

(As I said, my company employs people in the country of origin, so I don't need to do a lot of work any more).

chrismac1

I deal with small businesses of under £3m in sales. One of the biggest problems they face is the public sector. Whether its HSE, Environment Agency, local council, HMRC there is always some pesky box-ticker doing his or her best to get in the way of getting business done. Of course we need public services, and of course I'd rather live here than somewhere like China where health and safety more or less does not exist. But this country - like many others - has got the balance totally out of kilter. You don't create anything with box ticking.

Pennywise

Randvegeta wrote: »

Any way, 7500 is not a lot of money. If I fail to find a legal way of sending myself more money TAX free, what I will have to do is get a part time job in the UK to subsidise the standard of living I want, or just live off the 7.5k.

But you'll be liable to tax on your part time job wages if you're already using up your £7.5k annual tax free allowance on dividends from abroad. So you'd be no better off than if you simply brought in more dividends. You can only have your £7.5k tax free once!

Randvegeta

Pennywise wrote: »

But you'll be liable to tax on your part time job wages if you're already using up your £7.5k annual tax free allowance on dividends from abroad. So you'd be no better off than if you simply brought in more dividends. You can only have your £7.5k tax free once!

That is true but I would have no problem paying TAX where TAX is due.

Put it this way, I could work for around £10 - £15 /hour. Working 20hrs/ week = £200 - £300 /week = £10,400 - 15,600 /yr.

I have no problem paying TAX on this. UK derived income. I would of course not pay myself any dividends from my overseas company. I would be left with a couple extra grand of spending money, and a lot more money saved in my Company overseas.

It's pretty simple really. Non UK income, I don't want to pay TAX on it. If it is UK income, I have no problem paying TAX where TAX is due. After all, it is a benefit/privilege I receive from being in this country.

My overseas income is a benefit that I created myself, and one that would be far more benefitial if I were not here at all. I don't particularly want to be in the UK. Don't get me wrong, I do like England and I love a lot of our great traditions, history, and culture. But I am only here simply to be close to my GF (who is NOT British), and that is it. Not because I find the UK a better place to live.

I could like in a developing country with the same income and live a FAR BETTER life style. I consider being here a sacrifice on my lifestyle and I am not prepared to sacrificed any more.

At least if I get a job, I can justify losing some of my income. After-all, as I said, it is a benefit of being here.

MacMickster

So is your overseas income being correctly declared to the tax authorities in another country?

chrismac1

If he has registered it as a Permanent Establishment or the relevant similar entity in the given country, the answer is yes.

Randvegeta

MacMickster wrote: »

So is your overseas income being correctly declared to the tax authorities in another country?

Indeed. But it is paid as company profits TAX rather than personal income TAX. Therefore the double taxation relief probably does not apply as I do not personally pay TAX in that country. The company does.

Dividend payments are TAX free in that country.

Also, profits TAX is higher than personal income TAX by about 2% in that country, but there is a considerable amount more work in handling the 'employment' of staff (including myself) so it is easier to simply not pay any salaries and stick with 'contracting/commission/dividend' payments to avoid the hassle.