Tax Evasion or Aviodance Legal or not??

[BolshieBastard]

HMRC has the final say on whether an Ltd co can be closed \ struck off.

It is not up to the contractor to simply close the co as and when he wants without regard to HMRC.

[Peoplesoft bloke]

.......

Was having a chat about Tax and IR35 and guess what, this contractor told me he does not pay no tax at all.......

I don't pay no tax at all. Same applies to most people on here.

[ASB]

Evading tax is like speeding if you do it once, the chances are you get away with it. If you do it regularly you will get caught eventually. This guy will be in serious sh*t when they finally do catch up with him, we're talking not just penalties but huge fines as well.

Likely jail time too. If you look at HMRC prosecutions - which they list some of - in tax bulletins then you will see people doing jail time for amounts of less than 20k.

However, if the guy incorporates with nominees, manages to get bank accounts opened by nominees and they are non resident then phoenix companies can be difficult for HMRC to catch up with. But if they do it gets very unpleasant.

[BlasterBates]

Evading tax is like speeding if you do it once, the chances are you get away with it. If you do it regularly you will get caught eventually. This guy will be in serious sh*t when they finally do catch up with him, we're talking not just penalties but huge fines as well.

[Manic]

HMRC/Companies House are going to come after you sooner or later for final accounts, even on a closed company.

This guy is either lying, deeply stupid, or a criminal.

Or all three.

[VectraMan]

No accounts are ever filed, no CT returns completed and no tax ever paid. .

HMRC/Companies House are going to come after you sooner or later for final accounts, even on a closed company.

This guy is either lying, deeply stupid, or a criminal.

[chris79]

Somebody I know claims 96p a mile on his car.

You can claim what you want for your car, 96p is fine. The problem is when you do self assessment it asks you how many miles you claimed etc, and how much was paid then works out the difference between 40p and 96p in tax owed.

I mistakenly paid myself 49p a mile (at the advice of my accountant) last year, and ended up with a small tax bill on SA to cover the overpayment. All fixed!

[DaveB]

What does he do with the money in the company? Pay it out as some sort of share distribution (which counts as capital gains?)?

I'm guessing he simply siphons it off into his personal account. No accounts are ever filed, no CT returns completed and no tax ever paid. He simply doesnt declare the income on his personal tax return, hence paying no tax.

Evaison, pure and simple and definately illegal.

OP could always shop him to HMRC, I belive they pay a bounty on these things. Even if they don't he should be turned in IMHO as he makes the rest of us legitimate operators look bad and perpetuates the image of the tax dodging contractor.

[xoggoth]

Somebody I know claims 96p a mile on his car.

[tim123]

Evasion - and illegal.

I think that it just plain doesn't work.

tim

[NotAllThere]

Evasion - and illegal.

[moorfield]

Was having a chat about Tax and IR35 and guess what, this contractor told me he does not pay no tax at all. I asked why and how does he do it. Reply was, all you have to do is buy a Ltd company use it for about 6 months and just before april, close the compmay and buy another one off the shelf and after 8 - 9 months just before the Tax period close the company and repeat the process again and again.

Bollox.

[BrilloPad]

Hi folks,

Have been contracting through my Limited Company for years now. Going to different contracts and meetting new contractors from time to time.

Was having a chat about Tax and IR35 and guess what, this contractor told me he does not pay no tax at all. I asked why and how does he do it. Reply was, all you have to do is buy a Ltd company use it for about 6 months and just before april, close the compmay and buy another one off the shelf and after 8 - 9 months just before the Tax period close the company and repeat the process again and again.

I was shocked but then again wondered there must be some checks in place to stop this happening. What do you guys think is it cool or outright doddgy.

As to be hornest this is begining to appeal to me but first let me read what other poepl here have to say to that first.

As many advice o this is appreciated. Thanks all

What does he do with the money in the company? Pay it out as some sort of share distribution (which counts as capital gains?)?

[VectraMan]

Yeah that'll work.

[sharemaster2]

Hi folks,

Have been contracting through my Limited Company for years now. Going to different contracts and meetting new contractors from time to time.

Was having a chat about Tax and IR35 and guess what, this contractor told me he does not pay no tax at all. I asked why and how does he do it. Reply was, all you have to do is buy a Ltd company use it for about 6 months and just before april, close the compmay and buy another one off the shelf and after 8 - 9 months just before the Tax period close the company and repeat the process again and again.

I was shocked but then again wondered there must be some checks in place to stop this happening. What do you guys think is it cool or outright doddgy.

As to be hornest this is begining to appeal to me but first let me read what other poepl here have to say to that first.

As many advice o this is appreciated. Thanks all