Hello: Is there any other legal tax mitigation allowance (beside pension) that you could recommend? Working for example Inside IR35 / Outside IR35 (Outside I know its expenses, electronics, subsistence etc).
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Legal Tax Mitigation - advice
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- Live in the Cayman Islands.
- If you listen to some of the advice on here you'd just earn less.
- Outside IR35 will have less tax, but it's not just inside or outside. They are different ways of working.
And be careful about the use of the word legal. There are plenty of perfectly legal activities that will look great at face value, but hurt in the long run.See You Next Tuesday -
Originally posted by shabak View PostHello: Is there any other legal tax mitigation allowance (beside pension) that you could recommend? Working for example Inside IR35 / Outside IR35 (Outside I know its expenses, electronics, subsistence etc).merely at clientco for the entertainmentComment
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Put as much as you can into your personal pension, even to the extent of living off savings if you happen to have some that aren't tax advantaged (i.e. not in an ISA).
You can put £40k a year in, and top up 3 years of lower payments as well. Depending on how old you are, you might not even have to wait too long to start getting it out.Comment
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Originally posted by mattster View PostPut as much as you can into your personal pension, even to the extent of living off savings if you happen to have some that aren't tax advantaged (i.e. not in an ISA).
You can put £40k a year in, and top up 3 years of lower payments as well. Depending on how old you are, you might not even have to wait too long to start getting it out.Comment
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Originally posted by shabak View Postwasted by this politicians anyway.See You Next TuesdayComment
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Originally posted by Lance View Post
you mean like education, healthcare, roads and infrastructure that make it possible for you earn this money? That waste?Comment
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Originally posted by shabak View Post
Thanks! This is actually very good advice! I dont need much money atm and indeed putting 40k in the pension will save me tax that will get wasted by this politicians anyway.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by shabak View Post
Thanks! This is actually very good advice! I dont need much money atm and indeed putting 40k in the pension will save me tax that will get wasted by this politicians anyway.
In short, pension tax is complicated, and certainly not the free ride that some people assume. I see it as tax-deferred rather than tax mitigated.
£1m might seem a very big number, very far away, but a few years of 40k contributions and, hopefully, reasonable growth will start sending you towards that number.
And of course, you have to hope that HMRC don't change the rules during your 30-year working life, which they have already done by slashing the lifetime allowance.Comment
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