How to pay 1% income tax (apparently) How to pay 1% income tax (apparently)
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  1. #1

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    Default How to pay 1% income tax (apparently)

    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

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    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.
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    Quote Originally Posted by northernladuk View Post
    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.

  4. #4

    contractorcontractor

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    Default Nail the Evaders

    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.

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    There is a big difference between perfectly legal tax planning which is referred to as tax avoidance and the criminal act of tax evasion
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    Quote Originally Posted by contractorcontractor View Post
    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.
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    Quote Originally Posted by northernladuk View Post
    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.

  8. #8

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    Quote Originally Posted by northernladuk View Post
    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.

  9. #9

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    Quote Originally Posted by LisaContractorUmbrella View Post
    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.

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    Quote Originally Posted by contractorcontractor View Post
    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?
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