London perm salaries

[LondonPM1]

There is a fine line between tax avoidance and tax evasion - I lot of people on here who I trust their opinion of (far more than I trust yours) think you've well and truly crossed over it.

Oh and medium size accountancy firms are renowned for being slightly less conservative on the taxes front (often a good thing unless and until HMRC have a reason to come calling)

It would be helpful to know why you think I have crossed it? I ve not heard any reasons other than you have crossed it

Is it because parents are on the payroll or that parents decide to gift back their salary or some other discrete event

[WTFH]

It would be helpful to know why you think I have crossed it? I ve not heard any reasons other than you have crossed it

Is it because parents are on the payroll or that parents decide to gift back their salary or some other discrete event

Are you saying you employ your parents in fake jobs to deliberately reduce your tax, pay them salary (or salary + dividends) and then they give you the money?

Is this something your accountant says is OK?

How many of the 10+ years that you've been contracting for have you done this?

[LondonPM1]

Are you saying you employ your parents in fake jobs to deliberately reduce your tax, pay them salary (or salary + dividends) and then they give you the money?

No I am saying that they work managing the company affairs and take a salary which they so happen to gift back to me by way of having joint accounts - I am sure this happens with many companies including contractors employing their wives where people do not blink at this

As long as the work is quantifiable (and I as well as accountants are happy it is) then there is no evasion which this group seem so keen to try and highlight without any specific evidence

[eek]

No I am saying that they work managing the company affairs and take a salary which they so happen to gift back to me by way of having joint accounts - I am sure this happens with many companies including contractors employing their wives where people do not blink at this

As long as the work is quantifiable (and I as well as accountants are happy it is) then there is no evasion which this group seem so keen to try and highlight without any specific evidence

You seem to miss the fact that it is acceptable (thanks to S660) for a wife to do so - BUT it's not acceptable to HMRC to do so with your partner / parents / children. And it's seriously not acceptable to do so if the money is paid into an account you have control of (and a personal account is one you have control of even if it is in joint names).

There are some completely hilarious tax tribunals of people doing the sort of things you've admitted to doing - I think HMRC do it for the laugh it gives tax specialists (oh and the large penalties they can then add).

[WTFH]

No I am saying that they work managing the company affairs and take a salary which they so happen to gift back to me by way of having joint accounts - I am sure this happens with many companies including contractors employing their wives where people do not blink at this

As long as the work is quantifiable (and I as well as accountants are happy it is) then there is no evasion which this group seem so keen to try and highlight without any specific evidence

The evidence is your words.

Are you saying you have a joint bank account with your parents?

[wattaj]

No I am saying that they work managing the company affairs and take a salary which they so happen to gift back to me by way of having joint accounts - I am sure this happens with many companies including contractors employing their wives where people do not blink at this

As long as the work is quantifiable (and I as well as accountants are happy it is) then there is no evasion which this group seem so keen to try and highlight without any specific evidence

You are clearly delusional if you think that this arrangement would withstand an HMRC investigation.

My view is that you are involving your parents -- perhaps unwittingly; perhaps not -- in tax evasion.

[Paralytic]

The evidence is your words.

Are you saying you have a joint bank account with your parents?

It looks like it.

I'm sure quite a few people do this dodgy "give non-spouse family members a job, pay them a salary and get it back from them" but it is very daft/naive to document that by having the salaries paid into a joint account!

[wattaj]

It looks like it.

I'm sure quite a few people do this dodgy "give non-spouse family members a job, pay them a salary and get it back from them" but it is very daft/naive to document that by having the salaries paid into a joint account!

Quite. I can't help feeling that LPM needs to spend a bit of time better understanding the term "beneficiary" in order to see where this might lead.

[PermMCCon]

With more and more people moving from contracting to perm I’d love to hear from people what sort of perm salaries they are considering and hearing in London and specifically finance

Someone with 15 years experience front office computer science degree etc.

I’ll start by saying in the old days the number used to be 100-120 for a vp plus bonus and pension.

I’m sure things have changed and people will tell me 28k is the new salary but can we keep this discussion serious

I’d also add that getting 650 a day outside which is what it used to be was always heaps better then 120k and I did decline perm roles at that number to stay in contract.

Fortunately I am now outside Uk but do want to come back so preparing for what is the new normal

With more and more people moving from contracting to perm I’d love to hear from people what sort of perm salaries they are considering and hearing in London and specifically finance

Someone with 15 years experience front office computer science degree etc.

I’ll start by saying in the old days the number used to be 100-120 for a vp plus bonus and pension.

I’m sure things have changed and people will tell me 28k is the new salary but can we keep this discussion serious

I’d also add that getting 650 a day outside which is what it used to be was always heaps better then 120k and I did decline perm roles at that number to stay in contract.

Fortunately I am now outside Uk but do want to come back so preparing for what is the new normal

What a fascinating thread this was for me. Lots of people semi showing off about their old salaries and day rates. Congrats to all of us who benefited historically, but the poster is asking about current permie VP salaries.

- VPs in Financial Services (London) have a wide salary band, also dependent on a number of factors, eg whether they are in Tech/Ops vs Investment Bank

In my personal experience (and do take this with a pinch a salt, as should some of the drivel already posted above before me):

- Outside Inv Banking, likely you be around £50-80k with all the usual benefits (ie small bonus dependent on performance, % to pension etc). Everyone thinks this means £80k or more. It does not, lots of VPs on the 60 mark
- Inside IB (ie me in the past), £60-90k with same benefits except the bonus can be bigger (but not by much, you are not part of a trading desk)

I am a permie in IB London (Projects) and have hired in the past, as well as having been previously hired at that level.

HOWEVER, I would echo the sentiment of others in this Forum... there’s a general hiring Freeze across all the banks, especially at the VP ish level where there’s plenty of high performing young guns desperate to prove themselves for the very few VP roles available.

Where there used to be 200+ roles available when you did an internal role search, you are lucky if we currently have 15 internal. Hence in the past some of the 200+ would go external. No choice. But now there are so few roles that the high number of internals applying means there’s very little need for externals...

I wish you all the best in your search and will be interesting to see other updates on this thread.

But please guys, enough of the “ohhhh yeah I used to earn £5m a day at 0.0032% Blended tax rate!!!”.

[WTFH]

I wonder if LPM owns all his properties, or has bought them in the company name.
I wonder if there are any other stories that he's not telling us