Tax Free Riches + The End of New Labour Tax Free Riches + The End of New Labour
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  1. #1

    hugebrain

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    hugebrain

    Default Tax Free Riches + The End of New Labour

    Most of the genuine contractors on this board probably have a hundred grand or so kicking about in their limited companies waiting for a rainy day. Also, you probably haven't saved much of a pension.

    OK. Here's the plan...

    Come April 7th, we will be able put up to 225 grand in a tax-free pension.

    What if we all raise our salaries to 225K that year, invest it as a SIPP in foreign shares/property?

    That year all our companies make a loss. Labour's tax receipts turn negative. The British economy is utterly destroyed, the government falls. At a single stroke we rid ourselves of our oppressors and ensure ourselves a comfortable old age.

    Who's with me?

  2. #2

    DimPrawn

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    DimPrawn

    Default

    Not me mate. I'll be sitting by my pool sipping a cool beer and staring out to the med thinking of all you poor sods paying for Blairs dream Britain. :rollin

  3. #3

    dotnetted

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    dotnetted

    Default dp

    what are going to be doing in the med dimprawn? Are you hanging up your .net gloves?

  4. #4

    DimPrawn

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    DimPrawn

    Default Re: dp

    I've got enough wonga and property here to live a *basic* life at my villa without working, but intend to setup some sort of business once I'm out there. Not sure if it will Internet related or more traditional tourism based. Maybe flog timeshares to dozy Brits or ship cheapie foreign IT workers into Britain to work on <toot-toot> public sector IT projects. Who knows. Who cares.


    Main thing is you can keep Blairs dream. I'm not paying for it anymore, .NET or no bloody .NET

  5. #5

    Mr UK Bean

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    Mr UK Bean

    Default Re: dp

    Using SIPP to invest in property is throwing money down the drain, Property has had it’s boom and sorry to say, it’s on the bust.

    See www.citywire.co.uk/News/N...onID=74965

    Before you all jump down my throat

  6. #6

    hugebrain

    Guest

    hugebrain

    Default Re: dp

    >> thinking of all you poor sods paying for Blairs dream Britain

    Err, We won't be paying for Blair's dream, that's the whole point of the scheme. We can claim back this year's corporation tax and next year we pay no income tax or corporation tax at all.

    With all the money we save we can join you by the Med

  7. #7

    hugebrain

    Guest

    hugebrain

    Default UK Beans

    That article is about UK prices.

    Obviously they may go down a bit when my cunning plan destroys the British economy. That's why I specified that the SIPP should be used to buy foreign assets.

    Now that I've straightened out the minor quibbles - is everybody with me?

  8. #8

    DimPrawn

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    DimPrawn

    Default Re: UK Beans

    Explain it in detail for the hard of thinking.

  9. #9

    hugebrain

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    hugebrain

    Default Re: UK Beans

    >> Explain it in detail for the hard of thinking.

    This year we pay a low salary + dividends as normal and retain plenty of money in the limited company. Next year we pay a salary of 225,000 and invest it all in a pension.

    The company makes a loss next year so we have no tax to pay plus can claim back the corporation tax for this year.

    (You might want to run this past an accountant before trying it but I don't see why it wouldn't work). Also avoids that nasty dividend tax that makes it hard to withdraw any money in the company that directors had saved for their old age.

  10. #10

    DimPrawn

    Guest

    DimPrawn

    Default Re: UK Beans

    Any accountant types wish to comment?

    So we have the limited company pay a one off special bonus in the form of a pension contribution to our personal pension? Or are you saying we take £225K salary (which would attract employers NI)?

    Can a company go insolvent to pay a bonus? All seems a bit unlikely to me?

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