Tax man caught up with me....

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  • £600 needs paying to the tax man? Just get it paid. With the large savings you have at the moment, £600 isn't really going to put a dent in you.

    We'd all want to live in a world where we don't pay tax and get all the benefits we can, but it won't happen.
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  • chucknorris
    chucknorris Posts: 10,785
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    jaybeetoo wrote: »
    Venture Capital Trusts

    I looked at those (and similar investments) but I decided that they were not for me. If I had invested just for the tax relief, it would definitely have been a case of the tail (tax relief) wagging the dog (investments that suit me).
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • Upwind wrote: »
    Why bonkers? I was thinking of putting it in his name and skimming the interest just to take it out of taxman view. He hasn't got a fortune behind him, so I doubt inheritance tax would figure...

    Because if he has debts, or needs benefits, or needs care in later life that money is his legally and will be taken account of for that. He won't be able to give it back to you because that would be deprivation of capital.

    I'm a tax adviser and quite honestly for the amount of tax you're talking about it isn't worth trying to be "clever". Put what you can into ISAs, pensions or whatever suits you according to your overall financial needs (access, risk vs reward and so on) and don't focus on the tax effect. It isn't much, just pay it. (ETA: I only say I'm a tax adviser - corporate though, not personal - because even I wouldn't be bothered to do much about this even though it is doing my kind out of a job!)
  • You "earnt" it by leaving it in the bank. How hard is that?

    When interest barely covers inflation, any taxation of it means there is a reduction in the value of capital, some or most of which might be hard earned.
  • Upwind
    Upwind Posts: 184
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    Thanks for all your advice (and some criticism) I take it all on board.

    I originally asked advice on tax avoiding measures as although I am fortunate (through hard work and saving) to have a pot of money behind me, I wondered if I there were other ways of legitimately avoiding tax and saving money - after all, this is a 'money saving' site....

    At the end of the day, it is not the be-all and end-all and I will pay my dues - although I'm not ashamed to say that I will continue to look at ways to avoid paying any more than is required to the taxman....
  • AlanP_2
    AlanP_2 Posts: 3,250
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    Upwind wrote: »
    Why bonkers? I was thinking of putting it in his name and skimming the interest just to take it out of taxman view. He hasn't got a fortune behind him, so I doubt inheritance tax would figure...

    That didn't sound like a legitimate idea for saving tax to me, more like avoidance of tax that is legitimately owed by yourself.

    Legitimate ways of avoiding tax on that amount of cash are limited unfortunately, and it sounds like you are maximising the ISA route already.
  • Upwind = Windup
  • vacheron
    vacheron Posts: 1,596
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    Upwind wrote: »
    Thanks for all your advice (and some criticism) I take it all on board.

    I originally asked advice on tax avoiding measures as although I am fortunate (through hard work and saving) to have a pot of money behind me, I wondered if I there were other ways of legitimately avoiding tax and saving money - after all, this is a 'money saving' site....

    At the end of the day, it is not the be-all and end-all and I will pay my dues - although I'm not ashamed to say that I will continue to look at ways to avoid paying any more than is required to the taxman....

    I assume with those savings you may not have any mortgage debt, but if you do, consider getting an offset mortgage and offset all your savings against that. That would provide a better effective ongoing return if you are paying more than a couple of percent on your mortgage rate and no tax on interest to pay as no interest is effectively earned.

    Yes, the initial fees could exceed the £600 tax, but this could give savings year on year so could be worth it.
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  • aj23_2
    aj23_2 Posts: 1,155
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    Upwind wrote: »
    Both of you are spot on guys and I'm being stung for just under £600 - which I ain't going to loose sleep over - I just hate giving the taxman any of my hard earnt. is it a good idea to get my old man to invest for me, or are they likely to smell a rat now? He would be OK doing it as he doesn't like ISA investments and he isn't getting stung on his tax...

    If you have 350k in savings and HMRC is chasing you for £600 because that's what you owe, then pay it. We all work hard for our money, but we still pay the tax owing.
  • Upwind
    Upwind Posts: 184
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    There seems to be a few righteous folk on here - I don't see what's wrong in trying to avoid paying any more tax that I have to. I don't have off-shore accounts, or a business to launder it through, so I thought I would ask the question..... As I said previously, I'm just trying to save money - as the majority on this site are doing....
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