BN66 - JR Judgement Day

[PlaneSailing]

That's exactly what I've been thinking.

Parker has made a subjective judgement on the artificiality or otherwise of a particular tax planning mechanism, when arguably all tax planning is articifical, and decided that that "artificiality" trumps any consideration of proportionality.

Which must certainly constitute sticking his sticky beak in to issues of public policy.



What would a "non-artificial" scheme look like? A "natural, organically grown, free-range" tax scheme?

A scheme that "contributes to the common good"? to paraphrase our BBC friend, captain Bollock.

Then there's that condescending crap about "Every tax payers dream"? Makes it sound like we were living in some eutopian fantasy world merely by arranging our tax affairs according to the laws of the land. What's that all about?

As for that garbage about restricting competition. That just beggars belief.

No, there's much more to come on this one, my friends.

Here here.



P.s. Good old Aunty Beeb no longer thinks I'm a dodger so all is
right with the world!

[elpinar]

It makes sense for those who can borrow extra against their mortgage - borrow at the low rate and pay it back it at the higher rate.

Anyone spot any flaws in my master plan ?

It makes sense if you only take it from NOW ... bit on the basis that back interst is 46% on the early years it doesnt help - so yes - if at the beginning you had always put the money away you areright, but if you are trying to cobat the interst now from a staadning start youve got a long way to go to catch up.

Also, depending on how you look at it, if its in a saving acct or isa (also at 5k year it will take you a long time to get your tax bill money into that) you still see it as yours and treat it as part of your assets - by having it in a CTD, after the intial gutting expiernece of seeing it go , you only have an upside - you will get it back when you win - so rather than it gogin if you lose its already gone but you might getit back .... if you get my drift ...

[Emigre]

PS basically if you live in the UK, work in the UK, get paid for work you do in the UK, there is no way and has never been any way of avoiding UK taxes. Working through your own UK limited company is and has always been the most tax efficient way of working legally.

[/B]

Er Hello Michelle. Wake up and smell the roses! Guess what, if they are allowed to apply retrospection to one tax they can do it to another. There is now no certainty that they will not retrospectively change all the rules on expenses perhaps disallowing any expenses back to the war.

What we did was legal too.

This email is offensive and SJD should be branded as complete charlatans. The timing and content is uncalled for, is inaccurate and above all completely unprofessional.

Reconsider.

[Cosmo]

Er Hello Michelle. Wake up and smell the roses! Guess what, if they are allowed to apply retrospection to one tax they can do it to another. There is now no certainty that they will not retrospectively change all the rules on expenses perhaps disallowing any expenses back to the war.

What we did was legal too.

This email is offensive and SJD should be branded as complete charlatans. The timing and content is uncalled for, is inaccurate and above all completely unprofessional.

Reconsider.

WHS

[DonkeyRhubarb]

The problem I have with CTDs is they get the benefit of my money for the term.
So, they're charging me 3.0% now (correct ?)
I can get 2.5% in cash ISAs and various savings accounts come fairly close.
So, I'm not quite covering their interest and there will be a difference to make up if I have to pay up.
But, if we eventually win, at least I've made some interest on this money as some sort of recompense for this charade.

...

Anyone spot any flaws in my master plan ?

None whatsoever.

We all need to bear in mind now that (sadly) this could drag on for another 5 years if it eventually goes to Europe, so it's worth doing a bit of long term planning.

[johnnyguitar]

It makes sense if you only take it from NOW ... bit on the basis that back interst is 46% on the early years it doesnt help - so yes - if at the beginning you had always put the money away you areright, but if you are trying to cobat the interst now from a staadning start youve got a long way to go to catch up.

Also, depending on how you look at it, if its in a saving acct or isa (also at 5k year it will take you a long time to get your tax bill money into that) you still see it as yours and treat it as part of your assets - by having it in a CTD, after the intial gutting expiernece of seeing it go , you only have an upside - you will get it back when you win - so rather than it gogin if you lose its already gone but you might getit back .... if you get my drift ...

Good points. But even the CTD won't cover for the interest previously accrued - you just have to look at that interest as part of the lump sum owed.
And yes, there are limits in ISAs - but it's a start and I just can't bring myself to put it in the hands of those malicious b*****ds

[elpinar]

I know how you feel and its very much cup half full half empty scenario ...... but ....... remember too that (apparently) HMRC dont know that you have the CTDs, so they shoudd not know that they have the money so should not see it as any step towards victroy

[DonkeyRhubarb]

Ctd

Just one point of clarification. You only need to put the tax component in a CTD, not the already accrued interest.

Take this example, which is not far off my own situation because I was only in the scheme in the first 3 years.

Tax - £100k
Accrued interest - £50k (I know, shocking)

If you were taking out a CTD, it would be for £100k. The other £50k you could invest in the highest rate account you can find, and any interest earned is yours to keep. I managed to fix some at 6% before rates tumbled last year.

Also, there is one other thing we should all bear in mind.

INFLATION!!!

The way this country is going, the debt may be significantly eroded in a few years time.

[SantaClaus]

Just one point of clarification. You only need to put the tax component in a CTD, not the already accrued interest.

Take this example, which is not far off my own situation because I was only in the scheme in the first 3 years.

Tax - £100k
Accrued interest - £50k (I know, shocking)

If you were taking out a CTD, it would be for £100k. The other £50k you could invest in the highest rate account you can find, and any interest earned is yours to keep. I managed to fix some at 6% before rates tumbled last year.

Also, there is one other thing we should all bear in mind.

INFLATION!!!

The way this country is going, the debt may be significantly eroded in a few years time.

Maybe it would be better to buy a foreign exchange option contract, and when the pound dives, pay back your debt in dollars.

This country is going down the drain financially anyway.
When it does and the £ crashes, the alledged 200 million figure wont help plug the deficit one jot.

[WhiteCat]

Ltd Co

If I go back to LTD, I'll trade as before. I firmly believe, the nature of my work puts me outside IR35. But I can't rely on that. We can't rely on anything anymore.

Agreed. I went back to Ltd Co (outside IR35) last year when all this started getting painful, and would have been ready to do so several years earlier if HMRC had done the decent thing and closed our loophole prospectively. Instead, they just watched for years and rubbed their hands together as the pot of available cash grew and grew until they were ready to slaughter us and grab it !

Keep up the fight . . . .