Dynamic Management Services

[Pondlife]

I haven't, because I have my own one-man scheme under which I pay less than 1% of my turnover in tax, as documented earlier.

You mentioned that you pay £5K and put the rest in a comp pension.

Does that mean you're living of the £5K + savings? If not, how do you get away with 1% tax? I don't mean to pry into specifics just a general gist will do.

[IR35 Avoider]

You mentioned that you pay £5K and put the rest in a comp pension.

Does that mean you're living of the £5K + savings? If not, how do you get away with 1% tax? I don't mean to pry into specifics just a general gist will do.

I'm living off 5K plus savings, plus my wife was relatively recently persuaded to start contributing to household expenses.

Although I will be gradually running down my non-pension savings to pay household bills, if you include what the company is putting into the pension in my savings, then my overall savings are increasing. I have 13 years to go before I can get at the pension money - my non-pension savings will easily carry me through to then. (Ignoring any potential expenses related to divorce and children.)

[ChimpMaster]

I'm living off 5K plus savings, plus my wife was relatively recently persuaded to start contributing to household expenses.

Although I will be gradually running down my non-pension savings to pay household bills, if you include what the company is putting into the pension in my savings, then my overall savings are increasing. I have 13 years to go before I can get at the pension money - my non-pension savings will easily carry me through to then. (Ignoring any potential expenses related to divorce and children.)

If you get divorced can your partner get at your pension? If not, then this is a great way to stash away your cash!

[malvolio]

So you are actually right at the end of the bell curve in terms of required income, and of course you can maximise your tax savings if you don't actually take any salary (or not very much). Sadly not the case for most of us!

Going back to the point in question though, a lot has happened in five years and Hector is still looking at corporate structures solely inteded to avoid paying the correct amount of income tax, so I will not be pursuing DMS's offerings. As someone has already pointed out, if you are an employee, IR35 doesn't apply anyway - although you can still be done for tax evasion if you are not properly declaring your income, so if DMS's scheme works out, when it matures you get a thumping great tax bill for that year anyway.