Tax Free Riches + The End of New Labour

[hugebrain]

Most of the genuine contractors on this board probably have a hundred grand or so kicking about in their limited companies waiting for a rainy day. Also, you probably haven't saved much of a pension.

OK. Here's the plan...

Come April 7th, we will be able put up to 225 grand in a tax-free pension.

What if we all raise our salaries to 225K that year, invest it as a SIPP in foreign shares/property?

That year all our companies make a loss. Labour's tax receipts turn negative. The British economy is utterly destroyed, the government falls. At a single stroke we rid ourselves of our oppressors and ensure ourselves a comfortable old age.

Who's with me?

[DimPrawn]

Not me mate. I'll be sitting by my pool sipping a cool beer and staring out to the med thinking of all you poor sods paying for Blairs dream Britain. :rollin

[dotnetted]

dp

what are going to be doing in the med dimprawn? Are you hanging up your .net gloves?

[DimPrawn]

Re: dp

I've got enough wonga and property here to live a *basic* life at my villa without working, but intend to setup some sort of business once I'm out there. Not sure if it will Internet related or more traditional tourism based. Maybe flog timeshares to dozy Brits or ship cheapie foreign IT workers into Britain to work on <toot-toot> public sector IT projects. Who knows. Who cares.


Main thing is you can keep Blairs dream. I'm not paying for it anymore, .NET or no bloody .NET

[Mr UK Bean]

Re: dp

Using SIPP to invest in property is throwing money down the drain, Property has had it’s boom and sorry to say, it’s on the bust.

See www.citywire.co.uk/News/N...onID=74965

Before you all jump down my throat

[hugebrain]

Re: dp

>> thinking of all you poor sods paying for Blairs dream Britain

Err, We won't be paying for Blair's dream, that's the whole point of the scheme. We can claim back this year's corporation tax and next year we pay no income tax or corporation tax at all.

With all the money we save we can join you by the Med

[hugebrain]

UK Beans

That article is about UK prices.

Obviously they may go down a bit when my cunning plan destroys the British economy. That's why I specified that the SIPP should be used to buy foreign assets.

Now that I've straightened out the minor quibbles - is everybody with me?

[DimPrawn]

Re: UK Beans

Explain it in detail for the hard of thinking.

[hugebrain]

Re: UK Beans

>> Explain it in detail for the hard of thinking.

This year we pay a low salary + dividends as normal and retain plenty of money in the limited company. Next year we pay a salary of 225,000 and invest it all in a pension.

The company makes a loss next year so we have no tax to pay plus can claim back the corporation tax for this year.

(You might want to run this past an accountant before trying it but I don't see why it wouldn't work). Also avoids that nasty dividend tax that makes it hard to withdraw any money in the company that directors had saved for their old age.

[DimPrawn]

Re: UK Beans

Any accountant types wish to comment?

So we have the limited company pay a one off special bonus in the form of a pension contribution to our personal pension? Or are you saying we take £225K salary (which would attract employers NI)?

Can a company go insolvent to pay a bonus? All seems a bit unlikely to me?