Reply to: Can a company get a pay day loan?

[chopper]

At 10% per day.
This is a scheme just like any other to reduce tax. Is it legal and what can HMRC do, cause they won't like it?

PS. Usual fookers don't bother vomiting here and just fook yourself.
Constructive discussion please.

Three outcomes.

1) Borrow £1000 and pay back, say £2000 (so £1000 in interest). You might save £190 on your Corp Tax bill, but the other £810 is lost to the payday lender forever. So yes, it reduces your tax bill, but the overall loss to the business is far higher.

2) Set up your own payday lender, become regulated and all that. Pay £1000 in interest. You'd save £190 in Corp Tax, but the £1000 profit your pay day lender created would pay £190 in Corp Tax. That company would have its own accountancy costs and whatnot. So the overall loss is higher than had you not bothered.

3) Jail time. If HMRC managed to stop laughing at such a moronic 'scheme', that is. 'Schemes' to evade tax should result in you having more money afterwards (but before the court case), not less.

[milanbenes]

At 10% per day.
This is a scheme just like any other to reduce tax. Is it legal and what can HMRC do, cause they won't like it?

PS. Usual fookers don't bother vomiting here and just fook yourself.
Constructive discussion please.

oh dear

Milan.

[LondonManc]

I don't think he was suggesting borrowing from an actual lender. Just coming up with a stupid avoidance scheme that would fail for multiple reasons.
That's how I read it anyway.

Sounded to me like you'd need to set up some FCA-regulated lender to lend the company, say, £40k and get £80k back in capital and interest. It could work better if you then charge £100/week for statements, plus other varying amounts for activity and a banking hotline with an 09 number billing at £200/minute.

[Old Greg]

I don't think he was suggesting borrowing from an actual lender. Just coming up with a stupid avoidance scheme that would fail for multiple reasons.
That's how I read it anyway.

He should have thought of an invoice factoring tax avoidance scheme such as x factor (where x = OJDATC).

[Lance]

Although it is highly unlikely someone will lend money to an entity that can vanish overnight without paying it's debts...

I don't think he was suggesting borrowing from an actual lender. Just coming up with a stupid avoidance scheme that would fail for multiple reasons.
That's how I read it anyway.

[vetran]

Although it is highly unlikely someone will lend money to an entity that can vanish overnight without paying it's debts...

I thought that was the whole business plan of the Pay Day loan industry?

[malvolio]

Although it is highly unlikely someone will lend money to an entity that can vanish overnight without paying it's debts...

[Eirikur]

How is this scheme meant to work?

It's easy you deduct the 10% per day interest from your ltd profit which will save you on your 19% corporation tax per year
If you borrow £10 you only will have to pay back £1.17*10E16 after a year (assuming daily interest over interest has to be paid as well) this can than be fully deducted from the corporation tax bill

[tomtomagain]

and what can HMRC do, cause they won't like it?

Put you in jail for tax evasion.

[northernladuk]

The loan is denominated in a fast depreciating foreign currency processed via the Oude Joris Dutch Antilles Trading Corporation. PM me with your bank account details for further information.

Take my money!!!

[Old Greg]

How is this scheme meant to work?

The loan is denominated in a fast depreciating foreign currency processed via the Oude Joris Dutch Antilles Trading Corporation. PM me with your bank account details for further information.

[northernladuk]

How is this scheme meant to work?

Well to be fair non of the ones he's thought up have even come close so it's just par for the course really.

[fullyautomatix]

How is this scheme meant to work?

[cojak]

Here’s some constructive advice. Being rude AND stupid will get you banned.

Being a troll will get you permabanned.

[northernladuk]

How can we have a constructive discussion with the stupid questions you keep asking?

Maybe if a kind Mod would move this to general we could give the OP some constructive feedback.