How to avoid paying tax

roblpm said:
I am a Chartered Tax Adviser fwiw.

I would suggest a sailing forum isn't the best place to get tax advice!!

A few hundred quid and a couple of hours with a tax adviser could save thousands in the future however it all depends on individual circumstances, what assets and income does the person have etc etc.

Lastly the points about the NHS and state pension are well made. It is always said that the tax tail shouldn't wag the dog.
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Totally agree with this, you may spark a few questions to ask though. Might be in touch when the day comes Rob :-) but I certainly won't be guessing :-)
 
mlthomas said:
Totally agree with this, you may spark a few questions to ask though. Might be in touch when the day comes Rob :-) but I certainly won't be guessing :-)
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Btw I wasn't trying to generate business as I am a lifestyle business kind of person! Trying to generate more time for sailing rather than more work! Though the work tends to pay for the sailing.......

What I do find though is that general advice is not a good idea.

The best way to do this sort of thing is write down what the situation is now. Then set out various scenarios with the tax implications and also warnings of any adverse effects on anything else. However it is human nature that people want instant easy answers, ie do this, pay no tax, with no downside. Not always possible!!
 
I'm sure that Nostrodamus, who started the thread @ the start of his cruising odyssey 3.5 years ago is embarrassed as anyone by it's untimely revival.
During that time there have been some quite interesting developments in Tax Law - larger cash ISAs, less prescriptive use of personal pension funds, a negative real rate of interest and larger tax-free allocations. Possibly such general and personal advice as he had then is in need of review.
 
cheskamint13 said:
Here's how: http://personalmoneynetwork.com/moneyblog/2012/09/13/top-ways-rich-avoid-taxes.
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Err, that's a US-article.

They say:
How the rich avoid taxes tip No. 5 – Vacation homes and yachts
Ah, the trappings of financial success. If you happen to have multiple homes and yachts, you too can take advantage of sizable tax loopholes. If you spend at least 14 days a year on a yacht in furnished quarters with kitchen and bathroom facilities, that yacht can be considered a home for tax purposes.

But what's the rule in the UK?
 
Boreades said:
Err, that's a US-article.

They say:
How the rich avoid taxes tip No. 5 – Vacation homes and yachts
Ah, the trappings of financial success. If you happen to have multiple homes and yachts, you too can take advantage of sizable tax loopholes. If you spend at least 14 days a year on a yacht in furnished quarters with kitchen and bathroom facilities, that yacht can be considered a home for tax purposes.

But what's the rule in the UK?
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http://www.hmrc.gov.uk/manuals/vtransmanual/VTRANS110560.htm

HM Revenue & Customs (HMRC) policy
In the light of the High Court decision in the case of Lt Cmdr Colin Stone [2008] EWHC 1249 (Ch), HMRC are changing their long-standing policy on the liability of vessels used as residential accommodation, excluding houseboats, for VAT purposes. This case concerned the VAT liability of the supply of ‘Dutch barges‘ acquired for the purpose of being used as a permanent residence.

The High Court decided that the supply of the vessel was entitled to zero-rating under the terms of UK law, because it was designed to be lived in as a permanent home and, therefore, not designed for use as recreation or pleasure.
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I did not realise this thread had been resurrected.
I certainly am in the same position. I still have to pay tax in the UK on a pension even through I have not been there for four years.
I am still broke so cannot afford tax advice.
The world is a wonderful place when they are not shooting at you or trying to hold you hostage.
My wife is still trying to kill me for the insurance money
But I am still loving this life
 
A rather old thread.
Funny though at least one situation not mentioned

Tax evasion will land you in jail, Tax avoidance is perfectly legal.
Doesn’t work for the average Joe. Multi Millionaires have lots of options.

None resident has been mentioned.

I don’t know if this still exists. Talk to a tax accountant. The UK used to have a tax deduction for being out of the country.
The rule was complicated, actually intended for UK residents who worked offshore.
Offshore meant out of the country rather than on a boat.

If you left the country and were out of the country for over a year with less than 60 days spent in the UK between the time you declare you left and when you declare you returned.
You had to be careful. You also had to make sure your time in the country was less than 1/6 the total time.
You could apply for a 100 per cent allowance. You still paid National Insurance Stamp and other deductions
Later the rule changed to 90 days and1/4
I think it went up to 180 and ½

You still had to file a tax return, owning property did not effect your deduction. You did not have to work for a foreign company.

I was self employed with a contract to a Hong Kong Company. So I organized my own taxes. It cost me 100 pounds or so a year to have an accountant do it all for me.

As far as I know I did not have to be self employed or work for a foreign company. If I had been working for a UK company and paid by AC Payee. Normal taxes would be deducted and I could have claimed back the tax paid while I was working out of the country.
The point was had to be out of the country.

I don’t know how this would apply to pensions. Or if this deduction still exists. I have lived worked and paid taxes in Canada for nearly 30 years. Canada has no such deduction.
 
Last edited:
>I don’t know if this still exists. Talk to a tax accountant. The UK used to have a tax deduction for being out of the country. The rule was complicated, actually intended for UK residents who worked offshore. Offshore meant out of the country rather than on a boat.

As I said earlier it is possible to get not resident and not ordinarily resident status if you live on a boat that is abroad and not in a fixed place. Jane and I did.
 
People on three year contracts in Antarctica can pay Antarctic taxes (= zero!). You used to be able to do that for 6 months out of the country, but the qualifying period has steadily increased; I think you have to be away for a year to qualify now. I have never qualified!
 
Lets get some facts in this thread!!

The OP was asking about his UK pension income.

You guys need to make sure when you are discussing income tax that you are clear about whether you are discussing UK income or foreign income.

Then everything will become clear!!!!!

If you are non resident you will still have to pay UK tax on UK income.
 
AntarcticPilot said:
People on three year contracts in Antarctica can pay Antarctic taxes (= zero!). You used to be able to do that for 6 months out of the country, but the qualifying period has steadily increased; I think you have to be away for a year to qualify now. I have never qualified!
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http://www.antarctica.ac.uk/employment/benefits/antarctica/

If you read this and look at the faqs of the BAS they refer to foreign income. Ie the pay is being generated in the antarctic. Then the normal rules apply. Ie if you are non resident you wont have to pay uk tax on it.
 
I think the key thing is where the income comes from. If you are paid by an off-shore company, as many merchant seamen are, and you are out of the UK for more than six months each year, then you can apply for special taxation. I know a couple of merchant seamen who do this.

If the income is generated in the UK, for example UK pensions or property letting, then I believe you have to pay UK tax on it, even if you are non-resident. I've been resident in Greece for over 10 years. I still have to pay tax on any UK income but I don't have to pay UK tax on what I earn in Greece.
 
Melody said:
I think the key thing is where the income comes from. If you are paid by an off-shore company, as many merchant seamen are, and you are out of the UK for more than six months each year, then you can apply for special taxation. I know a couple of merchant seamen who do this.

If the income is generated in the UK, for example UK pensions or property letting, then I believe you have to pay UK tax on it, even if you are non-resident. I've been resident in Greece for over 10 years. I still have to pay tax on any UK income but I don't have to pay UK tax on what I earn in Greece.
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There is a specific scheme for seafarers:
http://www.hmrc.gov.uk/cnr/seafaq2.htm
 
macd said:
...unless the country in which you are resident and the UK have an agreement to the contrary. (There may be other exceptions, but I know this one to be so.)
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Sure. But then you will be paying the tax of the country you are resident in.
 
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