London perm salaries

[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?

[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).

[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

[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]

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

[eek]

Pay all the tax required and not one penny more is my motto

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)

[WTFH]

[LondonPM1]

I wonder what percentage of the population would regard £75K a year as a "modest" passive income.

I'm also not sure why this part of the thread is still running. It can be summarised as:

Q. If I earn more and decide not to use any of the legal tax efficient approaches available to me, do I pay more tax?
A. Yes

Contractors who have spent the last ten years earning 650 -> 850 a day with very little breaks and buying property along the way are very likely to have this sort of warchest. Unless they have gone through a divorce or bought ferraris then this is how the cookie crumbles

[Paralytic]

Or equally walk and eat the leftovers - These expenses would have been properly deductible as a contractor -

I am showing you that from a 100K salary you are not going to earn much IF you also have some modest passive income. I have no idea what others on this board do or what income they have but to me these numbers show why many people will not be able to move from contracting to perm

I wonder what percentage of the population would regard £75K a year as a "modest" passive income.

I'm also not sure why this part of the thread is still running. It can be summarised as:

Q. If I earn more and decide not to use any of the legal tax efficient approaches available to me, do I pay more tax?
A. Yes

[LondonPM1]

Only to the extent that you seem to believe you shouldn't pay tax...

Pay all the tax required and not one penny more is my motto