Is it possible to become a millionaire (or near to) through investments?

Glen_Clark

Apodemus wrote: »

Sorry, but I can't accept that VAT is a stealth tax. It is the most visible there is,

More visible than income tax?

Glen_Clark

BananaRepublic wrote: »

You do like your leftie rants

My comments related to Thatcher's friendship with Sir Jimmy Savile OBE KCSG, and her Home Secretary losing the dossier on pedophilia in the Government etc. None of that makes me me left wing. In fact I believe in the free market, unlike G Osborne who continually intervenes in the housing market.

Glen_Clark

N1AK wrote: »

assuming ~4% above inflation returns.

That sounds an optimistic assumption to me - bearing in mind the returns on index linked bonds etc

bowlhead99

Oh right, thanks for explaining what the comments were about, now we totally understand why those comments had some sort of place on a thread about how feasible it was to generate a million pounds through investment.

...erm, hang on, maybe not.

Oh yeah I get it, politics are intrinsicly linked with investment returns so if a late PM was friendly with a late radio presenter who posthumously was revealed to have behaved inappropriately towards children, you'd better bring it up on this thread so that we better understand the nature of markets. Thanks.

Apodemus

Glen_Clark wrote: »

More visible than income tax?

Absolutely! VAT is itemised on the receipt every time I buy anything, with the actual payment rate quoted.

Income tax is only visible if you scrutinise your pay slip and even then, there is no figure to tell you what your overall tax rate is and it may go up or down over the year, be refunded at the end or a bit more demanded.

Aretnap

Glen_Clark wrote: »

Doesn't the link show whether it works?

Not really. The guardian article is just a rant (or polemic, depending on your point of view) about how there's lots of tax avoidance, and not enough prosecutions for tax evasion, and something about tax credit overpayments. It says nothing whatsoever about the effectiveness of any of the particular schemes featured in the Disptches programme.

All the BBC staff, Jimmy Carr etc, having their salaries paid to offshore shell companies? I don't recall him getting prosecuted?

No reason why they should be prosecuted. You can do what you like with your money - and have your salary paid into an offshore company if you want to - so long as you tell HMRC the truth about what you're doing. Seems like a sound principle to me. Of course HMRC might examine what you're doing, and decide that you have to pay tax on your salary anyway.

Which is what happened to Jimmy Carr. He didn't commit any crimes - he just bought into a scheme which wasn't as clever as the salesman told him it was. And for his trouble ended up with a tax bill for half a million quid. So to suggest that Jimmy Carr could choose to pay no tax is blatently not true. Will the schemes featured in the Dispatcjes programme be any more successful? I have no idea, but I wouldn't assume that they will be just because that's what the salesman claimed.

jamesd

Glen_Clark wrote: »

All the BBC staff, Jimmy Carr etc, having their salaries paid to offshore shell companies? I don't recall him getting prosecuted?

If you don't want to pay UK income tax it's easy enough. My overall potential income is well into higher rate band but my net income tax bill is going to be well under £500 this tax year, possibly under £100 if I can arrange it. Nothing illegal or special:

1. Pension contributions.
2. Buying VCTs that give 30% relief to use up the 20% income tax band.

So long as you can afford to wait the five years until you can sell the VCTs to take your deferred income and the VCTs are appropriate this can work fine and it's unquestionably completely legal and proper.

Glen_Clark

bowlhead99 wrote: »

Oh right, thanks for explaining what the comments were about, now we totally understand why those comments had some sort of place on a thread about how feasible it was to generate a million pounds through investment.

...erm, hang on, maybe not.

Oh yeah I get it, politics are intrinsicly linked with investment returns so if a late PM was friendly with a late radio presenter who posthumously was revealed to have behaved inappropriately towards children, you'd better bring it up on this thread so that we better understand the nature of markets. Thanks.

Now you are changing the subject.
I was trying to explain I am not a 'leftie' as BananaRepublic wrongly stated..
Whether thats relevant to this thread is another matter. If it isn't you should have said so when he wrongly accused me of it.

Glen_Clark

Apodemus wrote: »

Absolutely! VAT is itemised on the receipt every time I buy anything, with the actual payment rate quoted.

Income tax is only visible if you scrutinise your pay slip

Why would he have to 'scrutinise' his pay slip to see it? So you think the average guy is more likely to get a vat receipt for everything he buys, more than look at the tax deducted on his pay slip?

Apodemus

Glen_Clark wrote: »

Why would he have to 'scrutinise' his pay slip to see it? So you think the average guy is more likely to get a vat receipt for everything he buys, more than look at the tax deducted on his pay slip?

Each to their own. I'll concede that for some people their income tax might be highly visible. Personally I can only know with hindsight the tax on additional pound earned, where I can know with certainty the VAT on a purchase before it is made. However, in my view neither Income Tax nor VAT are stealth taxes.