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RockyBalboa
20th June 2012, 17:07
A Times newspaper investigation has exposed a tax avoidance scheme that annually shields £168 million from HMRC and includes amongst its clients, the comedian Jimmy Carr.

The K2 scheme is provided by Peak Performance Accountants and works by transferring salaries into a Jersey based trust which then lends money back to investors. Technically, the loan can be recalled which allows the income to escape income tax. The 1,100 clients using this scheme pay as little as 1% income tax, according to the Times investigation.

Whilst confirming that the celebrity comic and TV presenter, Jimmy Carr, is a beneficiary of the scheme, his lawyers have denied their client is involved in anything illegal and that the arrangement had been disclosed to HMRC.

The Times reported that the K2 scheme has enabled Carr to keep £3.3 million from the clutches of the Revenue.

Roy Lyness of Peak Performance Accountants told an undercover reporter, “It's like a satnav. I'm driving to Manchester, get a message saying there's a smash at Stoke, press this button to re-route. The Revenue closes one scheme, we find another way round it.”

Following this year’s Budget that signalled a get tough approach on aggressive tax avoidance, Lyness announced to his clients, “We're delighted to inform you that most of the powerful tax saving opportunities survived unscathed.”

It is this type of brazen attitude towards aggressive tax avoidance displayed by the likes of Lyness and others that enrages the Government and will make them more determined to stamp out artificial schemes by way of a GAAR (general anti-abuse rule), which is currently being consulted on.

Source: contractor weekly

northernladuk
20th June 2012, 17:12
Yeah well done A) It is yesterdays news and B) We currently have two threads, one in business section and one in General...

I think that is a KUATB to you.

RockyBalboa
20th June 2012, 18:32
Yeah well done A) It is yesterdays news and B) We currently have two threads, one in business section and one in General...

I think that is a KUATB to you.

Yep, I realised after I posted but had no way to delete. :hug:

contractorcontractor
27th June 2012, 22:41
I know contractors who get paid abroad but work and live in the UK. I knew a Labour voting contractor who locked his money away and claimed income support.

Lets be clear, hiding you money is not the same as an ISA. The taxman doesnt care about ISAs. If you hide income from the taxman, it is EVASION and you deserve to get clobbered.

I am fed up of free loaders and that includes tax evaders. If you dont come clean, I am happy for hector to go for the 4 bedroom house and 4WD Lexus.

LisaContractorUmbrella
28th June 2012, 08:30
There is a big difference between perfectly legal tax planning which is referred to as tax avoidance and the criminal act of tax evasion

northernladuk
28th June 2012, 08:32
I know contractors who get paid abroad but work and live in the UK. I knew a Labour voting contractor who locked his money away and claimed income support.

Lets be clear, hiding you money is not the same as an ISA. The taxman doesnt care about ISAs. If you hide income from the taxman, it is EVASION and you deserve to get clobbered.

I am fed up of free loaders and that includes tax evaders. If you dont come clean, I am happy for hector to go for the 4 bedroom house and 4WD Lexus.

You really must learn about the actual situation if you are going to try and rant. Stops you looking stupid.

contractorcontractor
29th June 2012, 22:15
You really must learn about the actual situation if you are going to try and rant. Stops you looking stupid.

Ha, some people dont like others to talk. Instead of a counter argument we have an attempt to silence...

Here is the test:

1) if you are happy for the taxman to see your income, it is avoiding - like stepping out of the way of a car.

2) if you hide income from the taxman, it is evading - like hiding behind a bush.

contractorcontractor
29th June 2012, 22:18
You really must learn about the actual situation if you are going to try and rant. Stops you looking stupid.

Mr Northerner, I think you have spoken on the Security Cleared thread.

If so, here is something to think about. If you are secuity cleared and hide global income from the taxman, you are at risk of blackmail. If so, you could/would/should lose your security clearance.

contractorcontractor
29th June 2012, 22:21
There is a big difference between perfectly legal tax planning which is referred to as tax avoidance and the criminal act of tax evasion

If you hide your "perfectly legal tax plan", chances are, you already suspect it isn't legal at all.

northernladuk
1st July 2012, 21:04
Ha, some people dont like others to talk. Instead of a counter argument we have an attempt to silence...

Here is the test:

1) if you are happy for the taxman to see your income, it is avoiding - like stepping out of the way of a car.

2) if you hide income from the taxman, it is evading - like hiding behind a bush.

You have been drinking haven't you?

porrker
2nd July 2012, 07:13
Ha, some people dont like others to talk. Instead of a counter argument we have an attempt to silence...

Here is the test:

1) if you are happy for the taxman to see your income, it is avoiding - like stepping out of the way of a car.

2) if you hide income from the taxman, it is evading - like hiding behind a bush.


Simply Avoidance is working within the law. Evasion you are breaking the law.

LisaContractorUmbrella
2nd July 2012, 08:33
If you hide your "perfectly legal tax plan", chances are, you already suspect it isn't legal at all.

I'm sorry but what are you talking about :confused:

contractorcontractor
2nd July 2012, 12:40
You have been drinking haven't you?

Poster of the year? Judging by the standard of your posts, I'd say you did very well.

contractorcontractor
2nd July 2012, 12:41
I'm sorry but what are you talking about :confused:

That's ok you are not expected to understand everything.

But remember, when it comes to law and taxes, ignorance is not an excuse.

LisaContractorUmbrella
2nd July 2012, 13:10
That's ok you are not expected to understand everything.

But remember, when it comes to law and taxes, ignorance is not an excuse.

You're are sockie aren't you?

northernladuk
2nd July 2012, 14:17
48

Clare@InTouch
2nd July 2012, 14:37
48

42 Surely?

cojak
2nd July 2012, 15:06
Moved to General as it was never a useful thread in B/C, and (contractorcontractor can consider himself lucky that I did...)

Doggy Styles
2nd July 2012, 15:19
Isn't there a new law that says tax avoidance is morally illegal?

Or something?

Jog On
2nd July 2012, 15:34
Isn't there a new law that says tax avoidance is morally illegal?

Or something?

Yes I think the penalty is a jolly good dressing down and some quite scary posturing.

NickFitz
2nd July 2012, 16:16
45

Doggy Styles
2nd July 2012, 16:23
Yes I think the penalty is a jolly good dressing down and some quite scary posturing.What, one of those silky Japanese style ones with a dragon on the back?

That contravenes human rights, that does.

:D