MrCramp
Active member
Well said. I get fed up with people tryiing to duck and dive and dodge paying taxes. Good job some people pay!
How to avoid paying tax
- Thread starter Nostrodamus
- Start date
Well said. I get fed up with people tryiing to duck and dive and dodge paying taxes. Good job some people pay!
VADROUILLE
New member
As a merchant seamen the simple rule we have is this.
Spend 6 months or more out of the country and you can claim your tax back.
Stephen king tax is worth a call, he charges about £200 for the first claim then every year after that about £150. All you do is send them proof of you being out of the country and your p60. (Dunno if you still get them when retired?)
Of course, i dont know how much your pention is and this cost may not be worth it. ( i do it because its easy and i know its been done correct plus its on my entire wages so its a cheap fee to pay for me.)
But you can fill out the forms yourself and then you dont have to pay someone to do it. you can print them off whatever the tax website is. (i think its just a simple tax return form? it also tells you the rules i think aswell, however it went right over my head, hence why i use sk tax.)
It would be worth noting though that they are trying to get rid of this rule, but as of yet it still stands....
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Madhatter
New member
chinita
Well-known member
I agree with much of what Tranona has said - not so much about the arguments for and against taxes but more in terms of keeping a foothold in UK. Big Brother is here Big Time and it is increasingly difficult to work outside of his very restrictive box. I am afraid that for us minion taxpayers trying to forge a slightly more exciting life the odds are stacked against us.
Believe me, you do not know what is around the corner and one day you might, just might have to swallow the anchor for a while and pick up the pieces here. When I sailed off into the sunset over ten years ago I felt much as you feel now. I spent several years extricating myself from the lubberly bonds and, for a while, felt true independence.
Then family problems intervened - divorce, illnesses, bankruptcy, deaths........you name it and none of my doing but all reasons which required me to establish a new base in the UK. I have now devoted a few years in establishing the right balance and am lucky enough to have a house and little boat in the UK and a little boat in the sun. Even that hard fought scenario is fraught with problems both legally and economically.
I hate being on land, I loathe it and count the days to when I can be back onboard. However, I now fully realise that by sailing away from this Society you do not solve your problems - you just create a load of whole new ones.
I am all for the 'Just Do It' stuff; BUT 'Just Do It' with your eyes open and a healthy respect for the vagaries of fate. Of all the hundreds of liveaboards of all nationalities I have known I reckon only about 5% are still 'living the dream' after 10 years or so. If you fancy that statistic - carry on and good luck!
Believe me, you do not know what is around the corner and one day you might, just might have to swallow the anchor for a while and pick up the pieces here. When I sailed off into the sunset over ten years ago I felt much as you feel now. I spent several years extricating myself from the lubberly bonds and, for a while, felt true independence.
Then family problems intervened - divorce, illnesses, bankruptcy, deaths........you name it and none of my doing but all reasons which required me to establish a new base in the UK. I have now devoted a few years in establishing the right balance and am lucky enough to have a house and little boat in the UK and a little boat in the sun. Even that hard fought scenario is fraught with problems both legally and economically.
I hate being on land, I loathe it and count the days to when I can be back onboard. However, I now fully realise that by sailing away from this Society you do not solve your problems - you just create a load of whole new ones.
I am all for the 'Just Do It' stuff; BUT 'Just Do It' with your eyes open and a healthy respect for the vagaries of fate. Of all the hundreds of liveaboards of all nationalities I have known I reckon only about 5% are still 'living the dream' after 10 years or so. If you fancy that statistic - carry on and good luck!
Neddie_Seagoon
Active member
Suspect it's already been said, but Google QROPS. If you haven't taken a lump sum you can transfer your pension abroad to a QROPS scheme, living there or elsewhere outside the UK. Some people have quoted tax rates, here in the Isle of man it's 10%, but we still allow married couples to be taxed jointly, so IIRC the first £18,600 is tax free, then 10% above that, 20% if you get enough to pay any higher rate, which sounds unlikely.
ProDave
Well-known member
Why do you want to go abroad or anything like that to avoid tax, when there's a perfectly legal way:
Step 1. Sell your house etc in whatever expensive part of the UK you live in, and buy an equal, or probably better house in a cheaper part of the UK. that ensures you have no mortgage, own your house outright and have some savings. No mortgage = much cheaper cost of living.
Step 2 (the order might be wrong) quit your expensive high paid, high taxed job. Start up self employed, doing whatever you can only working part time, and only earning a small salary.
Now how does this work?
You can each earn roughly £6.5K before you become eligible to pay tax. So as a couple, that's about £13K between you that you can earn tax free.
Now, as low earners, you will find you are entitled to tax credits. Working tax credit for sure as you only earn a low wage, and if you have children under 18 (or is it 16) you will get child tax credit as well.
So not only are you not eligible to pay any tax, the tax man in fact gives money back to you, perhaps another £3-4K a year.
From what I can gather this works up to about a joint income of £20K, after which the tax credits diminish to nothing.
But food for thought if you want to semi retire and live partly off your low earned income, partly from tax credits, and partly from savings, without paying any income tax.
This is no "fiddle" that's just the way the tax system is in the UK at the moment.
Now if only someone will find me the equally legal way of avoiding vat etc (yes I know, buy everything second hand)
Step 1. Sell your house etc in whatever expensive part of the UK you live in, and buy an equal, or probably better house in a cheaper part of the UK. that ensures you have no mortgage, own your house outright and have some savings. No mortgage = much cheaper cost of living.
Step 2 (the order might be wrong) quit your expensive high paid, high taxed job. Start up self employed, doing whatever you can only working part time, and only earning a small salary.
Now how does this work?
You can each earn roughly £6.5K before you become eligible to pay tax. So as a couple, that's about £13K between you that you can earn tax free.
Now, as low earners, you will find you are entitled to tax credits. Working tax credit for sure as you only earn a low wage, and if you have children under 18 (or is it 16) you will get child tax credit as well.
So not only are you not eligible to pay any tax, the tax man in fact gives money back to you, perhaps another £3-4K a year.
From what I can gather this works up to about a joint income of £20K, after which the tax credits diminish to nothing.
But food for thought if you want to semi retire and live partly off your low earned income, partly from tax credits, and partly from savings, without paying any income tax.
This is no "fiddle" that's just the way the tax system is in the UK at the moment.
Now if only someone will find me the equally legal way of avoiding vat etc (yes I know, buy everything second hand)
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Tranona
Well-known member
Just to reinforce the point, those on Public Sector pensions (like me) have the vast majority of their contributions paid by us (collectively) the taxpayer. Some are even fortunate enough to be in a job where they can retire at an age that allows them to go off round the world in their own yacht - financed by the taxpayer funded pension. Not envy because I am in a similar situation - I have been able to finance a substantial yacht out of a public sector salary (plus a bit of private work) and if my health allowed I would be contnuing my sybaritic lifestyle in the Med.
The real crunch comes when you or your partner, in middle age gets one of the high probability conditions such as Prostate cancer or breast cancer, where private treatment would wipe the average person out financially in next to no time. On the other hand if you have access to the NHS for all its faults, you will see a top specialist in two weeks and get the very best treatment completely free.
The average life expectancy is now over 80 and in that time you will almost certainly need to call on the collectively provided services. Opting out of that collectivity while you are fit and able, just because you think you should not pay taxes (on money that was never really yours anyway) is very short sighted.
Bosun Higgs
N/A
Which is the point for the OP . He might not have to pay UK tax on his income if that income were earned outside the UK. Or at least he could avoid it since HMRC wouldnt know about it. His problem is that his income is earned inside the UK and subject to UK tax or the EU witholding tax unless he can establish that he's paying his dues elewhere.
Domicile is a different issue and you definitely cant be domicile free. But then domicile only affects things like inheritance tax so if you take all your money abroad, who is to know where it has gone? Unless, that is, you plan on leaving it to kids domiciled in the UK.
Tintin
Well-known member
I stumbled across this company - they specialise in those who work in places like Iraq and other war zones in close protection.
They also deal with mariners.
Their website looks very impressive, but having had a meeting with Anna Cooperwhite, she is very down to earth and the cost is not huge - £250 per year for her to manage things.
Give her a call and see what she says....
They also deal with mariners.
Their website looks very impressive, but having had a meeting with Anna Cooperwhite, she is very down to earth and the cost is not huge - £250 per year for her to manage things.
Give her a call and see what she says....
Angele
Active member
Yes, got that. See my post numbers 23 and 35 and you will see that is precisely what I have been saying!
jordanbasset
Well-known member
Thank you, that is what I was told first hand by him and it is good to have it confirmed, I was beginning to doubt my memory. Unlike some seem to say your pension, even if derived wholly in the U.K., can be paid grossed and taxed in your current country of residency, subject of course to the conditions outlined.
Nostrodamus
New member
Look , I will say from the outset that occasionally I do enjoy a good gripe and there are things which really do get my back up but still being a Brit at least I queue up and wait my turn in line to say it.
If I were domiciled in another country I would probably not understand a queue and walk strait to the front and make my views very clearly felt.
I have worked all my life, saved what little I can and have never had occasion to claim “benefits”.
My wife has done the same.
I do get a UK derived pension from my previous occupation and was able to retire at 49 with no mortgage.
When I did retire from work I went into the job centre and was told that because of my pensions and savings I was not entitled to any assistance because I had too much money and in effect had looked after myself. The savings had come from our wages that had been taxed and were still being taxed. They were not bothered about helping me to find another job as I was not a “statistic”.
In my working life I had seen numerous people who had never contributed one jot to the economy or in taxes getting hand-outs for things you would not believe. I have seen MP’s claiming thousands for ridiculous things. Our MP travelled less distance into work than I did but I was paying for a second home for her as she lived outside London. I have regularly seen people from other countries flying in and getting a taxi to hospital to have free operations. A couple of months ago a relation was told her hospital appointment was cancelled as they were only seeing immigrants.
You will all know your own similar stories so when it comes to paying tax I do feel like a pubic hair on a toilet seat (well peed off).
I may be getting something off my chest but if there was a legal way to stop or reduce my taxes going towards this and I could actually use it on my own family then why shouldn’t I?
I am resigned to the fact that there is little I can do and long term it may be better to just accept it. That’s what Brits do isn’t it? We cough quietly, moan to others and do nothing!
Rant over with.
If I were domiciled in another country I would probably not understand a queue and walk strait to the front and make my views very clearly felt.
I have worked all my life, saved what little I can and have never had occasion to claim “benefits”.
My wife has done the same.
I do get a UK derived pension from my previous occupation and was able to retire at 49 with no mortgage.
When I did retire from work I went into the job centre and was told that because of my pensions and savings I was not entitled to any assistance because I had too much money and in effect had looked after myself. The savings had come from our wages that had been taxed and were still being taxed. They were not bothered about helping me to find another job as I was not a “statistic”.
In my working life I had seen numerous people who had never contributed one jot to the economy or in taxes getting hand-outs for things you would not believe. I have seen MP’s claiming thousands for ridiculous things. Our MP travelled less distance into work than I did but I was paying for a second home for her as she lived outside London. I have regularly seen people from other countries flying in and getting a taxi to hospital to have free operations. A couple of months ago a relation was told her hospital appointment was cancelled as they were only seeing immigrants.
You will all know your own similar stories so when it comes to paying tax I do feel like a pubic hair on a toilet seat (well peed off).
I may be getting something off my chest but if there was a legal way to stop or reduce my taxes going towards this and I could actually use it on my own family then why shouldn’t I?
I am resigned to the fact that there is little I can do and long term it may be better to just accept it. That’s what Brits do isn’t it? We cough quietly, moan to others and do nothing!
Rant over with.
Tranona
Well-known member
Sorry, seems you want it all ways. Remember the taxpayer is paying your pension for the rest of your life, probably longers than you worked for doing nothing.
You are indeed fortunate to be in your position. You cannot legally avoid tax on your UK income without making dramatic changes in your status - which long term are unlikely to be to your advantage. With careful planning, unless you have huge savings, there is no need to pay tax on any of your savings if you don't want to.
Don't know why people have to create "bogies" out of those who "fiddle" or don't work or whatever. Firstly they are a small minority and secondly there is little you as an individual can do about it. Concentrate on living your life to your standards and doing the best for you and your family - forget about the rest, 'cos it makes you sour for no benefit.
You are indeed fortunate to be in your position. You cannot legally avoid tax on your UK income without making dramatic changes in your status - which long term are unlikely to be to your advantage. With careful planning, unless you have huge savings, there is no need to pay tax on any of your savings if you don't want to.
Don't know why people have to create "bogies" out of those who "fiddle" or don't work or whatever. Firstly they are a small minority and secondly there is little you as an individual can do about it. Concentrate on living your life to your standards and doing the best for you and your family - forget about the rest, 'cos it makes you sour for no benefit.
chinita
Well-known member
I am afraid that life is full of injustices - wherever you are.
I pay full Council Tax on a house which is unoccupied for 6 months of every year. For the six months we are in the UK we spend most of the time on our small boat for which I pay annual insurance even though I only get about two months use every year. I pay a full TV licence for a TV which is unwatched for six months of every year. I pay BT Broadband every month on an eighteen month contract even though it is not used for six months of the year. I pay annual UK road tax for a vehicle which is not using UK roads for six months of every year. I pay a high home insurance premium as the house is empty for six months of every year. I pay an additional vehicle insurance premium as the vehicle is out of the country for six months of every year.
However, that is my choice. Nobody forces me to do what I do.
It all irritates me, of course it does. However, that I the price I must pay for the lifestyle I have chosen.
My advice is, as I have suggested before, get on with your exciting plans and enjoy every day as it happens. Be very aware, though, things can change in an instant.
I pay full Council Tax on a house which is unoccupied for 6 months of every year. For the six months we are in the UK we spend most of the time on our small boat for which I pay annual insurance even though I only get about two months use every year. I pay a full TV licence for a TV which is unwatched for six months of every year. I pay BT Broadband every month on an eighteen month contract even though it is not used for six months of the year. I pay annual UK road tax for a vehicle which is not using UK roads for six months of every year. I pay a high home insurance premium as the house is empty for six months of every year. I pay an additional vehicle insurance premium as the vehicle is out of the country for six months of every year.
However, that is my choice. Nobody forces me to do what I do.
It all irritates me, of course it does. However, that I the price I must pay for the lifestyle I have chosen.
My advice is, as I have suggested before, get on with your exciting plans and enjoy every day as it happens. Be very aware, though, things can change in an instant.
VADROUILLE
New member
Im sure you can pay for just 6 month car tax and 6 month t.v licence?
mountain
Well-known member
Missed a trick.
Make sure your investments are for growth only....zero coupon (ie no dividends nor interest).
You can the take up to £10,600 from that year's growth free of tax (CGT exemption) each giving you, as a couple, a further c£21,000 tax free.
Bingo...as a couple you're now on c£40,000 pa and not paying any income tax.
Someone very wise once said that no-one is under any obligation to arrange their affairs so that the taxman can take the maximimum. If its legal, legitimate etc then go for it, reduce your tax liability.
Those who take the moral high ground and arrange their own affairs so they pay more tax than they need to keep the scroungers in methodone and flat screen TVs can carry on as far as I'm concerned. That's their affair.
Conachair
Guest
chinita
Well-known member
1. Car Tax: in order to drive legally abroad you must display a current Tax Disc.
2. TV Licence: You may redeem your licence by the quarter. However, you must not have a TV set on the premises when you do so. I did this once and had several letters from TV Licencing threatening legal action - even though the house, at the time, was completely empty and on the market with a For Sale board!
KellysEye
Active member
We read that document before we left the UK in 2004. It convinced us that we couldn't get not res and not domiciled without a fixed address abroad and paying tax in the country.
The document singularly fails to mention the four year rule* that I mentioned, which we only found out when taking advice from an accountant. Not res and not domiciled obviously doesn't stop you paying tax on UK income, we paid tax on house rental income for example. But it does stop you paying tax on interest income if you keep the money offshore. Why they don't mention the four year rule I can't imagine ;-)
* for those that haven't read the four year rule: after four years away in a yacht you can apply for not res and not domiciled. If you've moved all your money offshore before leaving you will get a tax rebate on interest paid for the number of full tax years you have been away. Do not move to a European offshore bank the European witholding tax on interest is now 35%.
The document singularly fails to mention the four year rule* that I mentioned, which we only found out when taking advice from an accountant. Not res and not domiciled obviously doesn't stop you paying tax on UK income, we paid tax on house rental income for example. But it does stop you paying tax on interest income if you keep the money offshore. Why they don't mention the four year rule I can't imagine ;-)
* for those that haven't read the four year rule: after four years away in a yacht you can apply for not res and not domiciled. If you've moved all your money offshore before leaving you will get a tax rebate on interest paid for the number of full tax years you have been away. Do not move to a European offshore bank the European witholding tax on interest is now 35%.
Conachair
Guest
Being non res was easy but non domiciled seem to be a very different kettle of fish. Changing your nationality seems to be quite a big deal - why bother anyway, not sure what there is to be gained.