being creative..........

katykitten

i run a very small organisation in the uk and recently was well paid for some work i did in the middle east, my question is what is the best way to pay as little tax as possible on this money and do i have to declare it!

i have been paid into a US$ account, have a mortgage and am a single parent, with a couple of private pensions

i am also employed part time

any suggestions/guidance greatly appreciated

BoGoF

If you are resident and domiciled in the UK there is no way of being 'creative' (some people may call it something else). You are taxable on your worldwide income.

Pennywise

You can claim your expenses against the income and pay tax on the net amount. Presumably you incurred costs for them, however small, such as stationery, telephone calls, internet access, computer, maybe travelling expenses, maybe buying books for research, maybe relevant professional fees, and of course, a proportion of your household costs for the time & space you worked at home on this project.

You can claim all costs that were "wholly and exclusively" for business purposes, which basically means anything you spent specifically for the project that had no personal use.

You can also claim a proportion of costs that have "dual use" - the proportion being the business related proportion, and the apportionment needs to be on a reasonable basis.

I'm sure that you could muster a list of expenses to set against the fee you received and reduce your taxable income considerably.

katykitten

thank you - i was thinking about things like my pension, ISA's, things like this - is there anything i can put this into that will reduce the tax i have to pay?

BoGoF

Putting the earned income into an ISA or a pension doesn't stop the income being taxable.

jennifernil

Are pension contributions not tax deductible?

katykitten

this would be great if i could put it all into a pension- and not attract any tax at all!!

xylophone

http://www.hmrc.gov.uk/incometax/relief-pension.htm
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/LeavingOrComingIntoTheUK/DG_10026136
http://www.hmrc.gov.uk/worksheets/sa106-notes.pdf
Do you not have an accountant to help?

katykitten

welllllll i do but if i tell him about the money he is obliged to tell HMRC so you see my pridicament, plus i dont pay him to advise me just to do my tax returns

Mouse1812

Jo, it's not wise to come on here and tell the world what you've been hiding from me ...

BoGoF

katykitten wrote: »

welllllll i do but if i tell him about the money he is obliged to tell HMRC so you see my pridicament, plus i dont pay him to advise me just to do my tax returns

So what's this predicament? Be honest or commit fraud.....what a dilemma.....