Reply to: Tax on Buy To Let - Complicated Problem!!!

[benben5555]

Thanks, best of luck to you both

[captainham]

Enough arguing you two or I will have to log on to my Mod sockie. Question has been answered to best of our ability to let it lie.

[northernladuk]

Enough arguing you two or I will have to log on to my Mod sockie. Question has been answered to best of our ability to let it lie.

[captainham]

Funny, if it is so bad then why don't you get a normal job?

I didn't say it was bad. I was merely highlighting some of the differences that you are most likely not aware of, and therefore why it is important that I maximise my earnings in a legal way as I have lot more to consider than somebody in a 9-5 perm job.

This one pays more than a 'normal' job, and allows me more say of the direction I take. That's why I do it; I accept the points I listed earlier as the price I pay for that.

What I don't accept is the UK Gov (and many others) assuming I'm sort of tax-evading scumbag, when I'm operating within their own laws, earning them more tax money than I've ever earned for them as a permie, and all when I am working for myself, under my own direction, with my own costs and liabilities to consider.

[northernladuk]

Fiar play, but the way I see it is that I pay my fair share, so if what I am doing is legal, then its legal!

We could argue that artificially changing levels of ownership previously set to avoid tax in to something different for the sole purpose of avoiding a different set of taxes is a fine line of legality but anyway... What is legal is one thing, what HMRC will accept is a different kettle of fish.. but anyway, we don't know the answer to your question so guess that is that.

[benben5555]

You are commenting on something you clearly know nothing about, which is always amusing.

Do you have to pay yearly for various expensive business insurance policies? No.
Do you get sick pay? Most probably I guess.
Holiday pay? Another tick.
Pension contributions? Assuming so.
Are you liable to fix, at your own expense, something you have potentially done wrong, or risk getting taken to court over it? Unlikely.

I could go on, but I won't. Off you trot laddie.

Funny, if it is so bad then why don't you get a normal job?

[benben5555]

Fiar play, but the way I see it is that I pay my fair share, so if what I am doing is legal, then its legal!

[captainham]

Thanks all, I can see you have really enjoyed helping me with my issue!

Don't worry, I won't bother you again.

Funny though how you contractors are quite willing to maximise your earnings, but look down dimly at me for minimising the tax I pay even though my tax bill is still higher than a lot of peoples actual salaries.

You are commenting on something you clearly know nothing about, which is always amusing.

Do you have to pay yearly for various expensive business insurance policies? No.
Do you get sick pay? Most probably I guess.
Holiday pay? Another tick.
Pension contributions? Assuming so.
Are you liable to fix, at your own expense, something you have potentially done wrong, or risk getting taken to court over it? Unlikely.

I could go on, but I won't. Off you trot laddie.

[northernladuk]

Thanks all, I can see you have really enjoyed helping me with my issue!

Don't worry, I won't bother you again.

Funny though how you contractors are quite willing to maximise your earnings, but look down dimly at me for minimising the tax I pay even though my tax bill is still higher than a lot of peoples actual salaries.

But not being a contractor means you are not in any position to start to understand our predicament. We use documented legal avenues to do this as we run small business's and adhere to small business rules. The fact the govt wants to unfairly crack down on us is the issue.

You are just trying to avoid paying tax in a very clear situation by using deception and bending the rules.

Claiming what the govt allows us to do and bending watertight processes to avoid paying what you are due is whole different ball game I am afraid.

[benben5555]

Thanks all, I can see you have really enjoyed helping me with my issue!

Don't worry, I won't bother you again.

Funny though how you contractors are quite willing to maximise your earnings, but look down dimly at me for minimising the tax I pay even though my tax bill is still higher than a lot of peoples actual salaries.

[captainham]

Try asking HMRC directly. I'm sure they'd love to know what you're planning!

[captainham]

Thanks for your help, one last point I want to clarify...

"It is my understanding that a 99 / 1 split will not affect your individual CGT allowances when you come to sell the property - but I am still trying to get clarity on this (from my accountant) because, in your scenario, technically one of you will only own 1% of the property gain ... so I think that only 1% of the capital gain could be offset against your CGT allowance ... but I would be interested to hear what other forum members think about this point."

I think the above is correct, but can you simply just change the percentage owned just before you sell to 50/50? And how do you actually go about changing the percentages owned?

I've highlighted the most important part of that quote for you.

[northernladuk]

Thanks for your help, one last point I want to clarify...

"It is my understanding that a 99 / 1 split will not affect your individual CGT allowances when you come to sell the property - but I am still trying to get clarity on this (from my accountant) because, in your scenario, technically one of you will only own 1% of the property gain ... so I think that only 1% of the capital gain could be offset against your CGT allowance ... but I would be interested to hear what other forum members think about this point."

I think the above is correct, but can you simply just change the percentage owned just before you sell to 50/50? And how do you actually go about changing the percentages owned?

But that is where tax avoidance comes in. Talk to an accountant or solicitor.

[benben5555]

Thanks for your help, one last point I want to clarify...

"It is my understanding that a 99 / 1 split will not affect your individual CGT allowances when you come to sell the property - but I am still trying to get clarity on this (from my accountant) because, in your scenario, technically one of you will only own 1% of the property gain ... so I think that only 1% of the capital gain could be offset against your CGT allowance ... but I would be interested to hear what other forum members think about this point."

I think the above is correct, but can you simply just change the percentage owned just before you sell to 50/50? And how do you actually go about changing the percentages owned?

[northernladuk]

Same question has been asked here and a few of our accountants that post here responded...

http://forums.contractoruk.com/accou...age-query.html

Not bad for 5 mins research. Bearing in mind you are buying the house maybe time you did some hey?