I live on CUK
Plenty of small business people who go limited are given the advice to go the small salary/dividend route.
If they employ people, have subcontractors or deal with supplies it means they can control their cash flow better.
And yes I do know accountants who deal with some of them and some of these business people.
"You’re just a bad memory who doesn’t know when to go away" JR
More time posting than coding
I left 5 years ago just as this project was starting, But it looked fascinating. Dettica is a tool used by the intelligence services to find hidden links in huge data sets. from reading other articles around the web HMRC as using it to build a whole picture of you as a taxpayer. presumable all the data frm your return... What divs you taken what your expenses are, what you submitted in previous years SA, CT, VAT. etc, I wouldnt be suprised if they have banking data in there now given theyve got the offshore countries to open up.
Its the exact logic we dont know, but i would hazard a guess it prioritises on how much tax can be collected by an individual inspector if they come to look at you. So in year 1 to 3 youll not get investigated, but if you are in year 10 and have a potential £100,000k of "things the system has flagged" you might get investigated.
Signed sealed and delivered.
Of course it is speculation so everyone of us will have different view point, only a tax inspector can tell us.
Last edited by BlasterBates; 16th March 2013 at 13:54.
Author of the best seller "How to get Poor quickly"
I live on CUK
Contractor Among Contractors
I believe my ir35 investigation was instigated after I made a minor error in my p35 and then corrected it. If I had not corrected it I doubt they would have picked it up.
I passed the investigation by the way, even though I had been at my sole client for 6 years. (I was direct).