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rich
16th December 2002, 13:26
Hi,
Just about to receive a cheque for my first contract job outside of my fulltime job. Its a job I did for a fixed amount evenings and weekends at home after work.
How do I go about it to avoid paying loads of tax and losing all my (really really!!) hard earned money. I've waited four months for payment and don't want to see it all swallowed up in tax.
Should I set up a company or just declare it as earnings?
Any help, links, advice would be hugely helpful as they are asking who to make te cheque payable to and I dont know what to do
rich

shop
16th December 2002, 15:29
Setting up a Ltd company for 1 cheque is a little bit of overkill.

If they will make the cheque out to Bearer or cash. That would be good (Go straight into the bank and hand over the cheque to get the cash)

If the cheque is made payable to you, You can :-

1. Stick it in your back account (Hope the IR don't catch you)

2. Stick it in your bank account & declare it in your SA

3. Ring the IR for assistance.

I'm sure there will be a few people on here with far more creative methods.

SupremeSpod
16th December 2002, 15:52
Pay the required amount of tax and NI, then smile!

We've got to pay for the expansion of the EU somehow!

roger rabbit
16th December 2002, 16:06
tell the company to make the cheque out to mr r rabbit.

WouldBeEntrepreneur
16th December 2002, 18:17
Find someone with a Ltd company who needs another director. Then you can invoice and receive payment through the Ltd. How you take your remuneration is then a standard choice of salary/dividend split (but watch out for demon whose name is IR35!).

Debbie ITAccounting Online
17th December 2002, 08:13
You would need to be a shareholder (not a director) to receive any of the payment in dividends.

ITAccounting Online - Truly Interactive Internet Accounting (http://www.itaccounting.co.uk)

LeCorsaire
17th December 2002, 11:57
stick in your bank account - IR won't find out!!!

threaded
17th December 2002, 11:58
IIRC the UK banks now have to inform the authorities if one suddenly starts to receive large sums of money into ones bank account...|I

MarillionFan
17th December 2002, 15:50
Dont worry about it. Just put it in the bank and forget about it.

What you have to remember and what the chaps on this board have to remember is that we are self-employed. We pay our own tax. Therefore if we dont declare it we get screwed. Permanent employees have their company sort out all their tax receipts. No-one will find out. Bank it and have a great xmas.

NOTiFY
19th December 2002, 07:45
Telephone your local I.R. office and tell them your problem, that you don't want to pay taxes.

Make sure you give them real name and address and preferably your N.I. number before you start off on your "hard luck" story.

donaldduke
30th December 2002, 19:04
Go down to your local building society (or converted mutual eg halifax/abbey national etc) and open an
instant savings account with your cheque as opening
payment. Wait for cheque to clear, then
withdraw cash and close account.

Then 'misplace' all evidence of ever having held this account ie statments/savings books.

Of course you will need to keep some of the money to
one side for paying tax/ni etc etc