Modifying LTD share structure.

[ookook]

I know its tax evasion, It was a hypothetical situation. I was just curious as to how it was caught if there is no paper trail. No one ever went to jail for wondering how a crime is comitted.

[ASB]

No one ever went to jail for wondering how a crime is comitted.

Tony and his mates are trying to get that covered.

[ookook]

Tony and his mates are trying to get that covered.

Thanks for the advice guys, much appreciated

[THEPUMA]

I know its tax evasion, It was a hypothetical situation. I was just curious as to how it was caught if there is no paper trail. No one ever went to jail for wondering how a crime is comitted.

I think the answer is that is bloody obvious to a blind man (what's that joke about a nun in the bath?!) what has happened and when you try and defend yourself in front of a jury of laypeople, they simply won't believe that your company paid a divi of £10K to your old mum, who withdraw it in cash and blew the lot on the horses.

The burden of proof would be balance of probabilities rather than beyond reasonable doubt (assuming it is not a criminal fraud trial) so it is just what the jury think is most likely.

[ookook]

I think the answer is that is bloody obvious to a blind man (what's that joke about a nun in the bath?!) what has happened and when you try and defend yourself in front of a jury of laypeople, they simply won't believe that your company paid a divi of £10K to your old mum, who withdraw it in cash and blew the lot on the horses.

The burden of proof would be balance of probabilities rather than beyond reasonable doubt (assuming it is not a criminal fraud trial) so it is just what the jury think is most likely.

whats all this talk of court about? quoting directly from the contractor uk website guide to S660:

>>>>>>>>>>>

Will I get caught?
If you have set up a Limited Company, are a knowledge based worker and your spouse, parent, or sibling owns any shares in that Company, but do not actually earn income for the Company, then yes, you could potentially get caught. Having said that, there are only about 50 cases a year that are actually enquired into at present. The Inland Revenue has also recently vowed to clarify tax rules for the hundreds of thousands of ‘husband and wife’ companies that use dividend payment as a means of income.


What will it cost me if I am caught?
If you do get challenged by the Revenue then to work out how much tax they will be asking for, just check to see how much your tax your spouse has paid on her income in the last 6 years at either the zero or basic rate of tax, then multiply that by 25%. Add to this interest compounded at about 6% a year on the outstanding amount and you will have a rough idea

>>>>>>>>>>

I dont see any mention of court proceedings in there. And judging by other threads on this board - while it may be legally a grey area until the resolution of the Arctic case - a certain percentage of people DO divide their dividends in this manner. Probably adopting a "calculated risk" strategy in the same way that you calculated the risk of paying a directors salary of 6K odd in your recent posting.

PS - what nun joke?

[malvolio]

Never heard of Arctic? Go do a Google on "Arctic" and "Geoff Jones". It's only a rtrivial litle case; if they lose the House of Lords appeal, the new rules will apply to roughly 1 million small companies - there's only 50 a year at the mo becuase (a) it's still under appeal and HMRC are not starting any new cases or (b) the ones that are ongoing are clear breaches of the existing application of the law.

[ASB]

PS - what nun joke?

Two nuns in a bath.

One says: "wheres the soap"

Other replies "yes doesn't it"

Groan.

[ookook]

Never heard of Arctic? Go do a Google on "Arctic" and "Geoff Jones". It's only a rtrivial litle case; if they lose the House of Lords appeal, the new rules will apply to roughly 1 million small companies - there's only 50 a year at the mo becuase (a) it's still under appeal and HMRC are not starting any new cases or (b) the ones that are ongoing are clear breaches of the existing application of the law.

Yes I have heard of Arctic - that why i said "while it may be legally a grey area until the resolution of the Arctic case" in my previous post. Although I didnt know that HRMC aren't starting any new cases until the appeal is finished.

[THEPUMA]

there's a nun in the bath. knock at the door. `who is it?`

`the blind man`

`ok come in`

`right. where do you want your blinds?`