The 'who's' getting shafted over tax avoidance thread?

[Mich the Tester]

You provide credit but you do not lend money.

Hence your example is irrelevant.

You need to learn about the concept of creditors and debtors in company accounts.

[Kanye]

And the taxman should have problems with such arrangements - it makes no business sense to give loans at 0% interest or give loans in the first place if company does not specialise for it. Quite why this is allowed under current tax system is a mystery to me.

I don't have any loans from company.

Mate you are flat out 100% wrong on nearly every post in this thread! It's 100% valid, simple, vanilla thing to do, and HMRC have no problem with it whatsoever as far as I can tell.

[AtW]

You need to learn about the concept of creditors and debtors in company accounts.

I am well aware of it.

What you seem to fail to understand is that providing credit is not always the same as lending money.

[rd409]

It would have been higher if I never found this place

It's still not too late I guess.

[AtW]

Mate you are flat out 100% wrong on nearly every post in this thread! It's 100% valid, simple, vanilla thing to do, and HMRC have no problem with it whatsoever as far as I can tell.

Yes they most likely don't.

What I am saying is that they should and hopefully will.

[Mich the Tester]

I am well aware of it.

What you seem to fail to understand is that providing credit is not always the same as lending money.

How?

I charge x groats per hour for testing and I test for y hours. I send an invoice for (xy+ NL sales tax @19%). Therefore, having sent the invoice, assuming I have carried out the testing, I am now a creditor to the sum of xy and the tax office is a creditor to me to the sum of 0.19xy. Please explain the difference between this and a simple loan of money to the clientco, in accounting terms.

[AtW]

It's still not too late I guess.

No, but the pleasure of winding up some people here is priceless - as soon as I start earning as much I'd quit this place in a second

[AtW]

Please explain the difference between this and a simple loan of money to the clientco, in accounting terms.

In accounting terms it can be the same but in tax terms or compliance terms it can be completely different.

If you are in business of lending money then you need appropriate license.

This case relates to somebody lending themselves money from business.

[doodab]

If you are in business of lending money then you need appropriate license.

What a load of tulipbiscuits. Where do you think bank deposits come from? Ordinary people and companies lending money to the bank. What about when you start a business and you lend the company £20k of working capital? Or lend your mate a fiver in the pub?

[AtW]

Ordinary people and companies lending money to the bank. What about when you start a business and you lend the company £20k of working capital?

None of this dodges taxes though, eh?