Anyhow, staff is gonna be rich.
- Thread starter cedivad
- Start date
Cezz
Well-known member
Tell me about it... lol... Throw in business tax if they open up an office, and council tax on their homes and you are paying more than 50%... Though NI isn't that bad at the moment either £2.10 or £14.?? (voluntary)
welshstew
Active member
Why don't you open a panama/honk kong limited?
I'm serious. Just like megaupload
That would mean they can only reside in the UK for 3 months of the year..
Cezz
Well-known member
I guess that would be a valid reason for a lot of holidays?
live in 5 countries 3months a year every year
... somehow I think that will cost more than the 50% but would be an interesting life... Though school for Kier's little one may be very difficult
cedivad
Active member
Is there a UK laws that says so? Because you don't have to be resident in panama to have a limited there =)
from italy it would be possibile. put my names in all the contracts, i will take the 1%. i'm available
welshstew
Active member
You don't pay coporation tax if you have an office, you pay it if you register as a company at companies house.
But the point is that you do want to register as a ltd company if you are producing a Good. One reason is becuase you can then claim relief from VAT, but the other is that the company is classed as a seperate entity, which is good from a legal aspect.
If you not registered as a company, then you take that VAT hit, which sucks down your potential profits...
On top of the VAT relief, corporation tax is only 19% and dividend tax is 19% (I think). Therefore, as an owner of the company you can pay yourself a lower wage (paying 23%) and then claim dividends for the rest - therefore only pay 19% rather than 40%
NI is complicated, as it all depends on what band you fall into.
welshstew
Active member
yeah, if you reside here for longer than 3 months you have to register for tax purposes - which is why a lot of service based people now work remotely from Dubai...
or the Isle of Man ...
welshstew
Active member
Ah man, I just looked this up and it looks like they have closed this loophole - Razza-Frazza-Grazza-Drazza!
I hate the tax man
Cezz
Well-known member
You don't pay coporation tax if you have an office, you pay it if you register as a company at companies house.
But the point is that you do want to register as a ltd company if you are producing a Good. One reason is becuase you can then claim relief from VAT, but the other is that the company is classed as a seperate entity, which is good from a legal aspect.
If you not registered as a company, then you take that VAT hit, which sucks down your potential profits...
On top of the VAT relief, corporation tax is only 19% and dividend tax is 19% (I think). Therefore, as an owner of the company you can pay yourself a lower wage (paying 23%) and then claim dividends for the rest - therefore only pay 19% rather than 40%
NI is complicated, as it all depends on what band you fall into.
You miss-understood what I meant by business tax, I didn't mean corporations tax but actually tax on the business property (Commercial Property Tax)... it is lower for an office than say a shop but it is still higher than residential council tax. Or at least it is in my area (thought there are some grants for business under 2years old).
Cezz
Well-known member
Ah man, I just looked this up and it looks like they have closed this loophole - Razza-Frazza-Grazza-Drazza!
I hate the tax man
Lol this was closed a while ago... In fact not long after the whole directors loans loophole was closed.
jonsidneyb
Well-known member
When they start selling at the volume levels you guys are talking there are gong to be quite a few more employees than the three of them.
I really do want them to become very rich off of this.
Sometimes companies that look rich are not as you would think. I worked for a company that was pretty high profile, the sales were huge, the NPV was not as big as it appeared. The margins were much smaller than the public imagined. In spite of the massive revenue the costs were much higher than people thought and there were many hands out for money. People would say things such as "they have too much money" or "they can afford it" yet there was much worry about being a going concern.
I do think they will make it but after then have there first million what ever measure you want to use they will not have a million. When the the sales are flowing in fast they will likely not be quite a rich as most people think even if they are rich.
I really do want them to become very rich off of this.
Sometimes companies that look rich are not as you would think. I worked for a company that was pretty high profile, the sales were huge, the NPV was not as big as it appeared. The margins were much smaller than the public imagined. In spite of the massive revenue the costs were much higher than people thought and there were many hands out for money. People would say things such as "they have too much money" or "they can afford it" yet there was much worry about being a going concern.
I do think they will make it but after then have there first million what ever measure you want to use they will not have a million. When the the sales are flowing in fast they will likely not be quite a rich as most people think even if they are rich.
XFA
Well-known member
Entertaining to read how you guys are trying to find solutions for Mike/Kier having to pay tax. Lol,
Yeah they kinda are the accounting team !
captainslater
Well-known member
Ah man, I just looked this up and it looks like they have closed this loophole - Razza-Frazza-Grazza-Drazza!
I hate the tax man
But helps a country to stay intact (more or less)...
XFA
Well-known member
Were you referring to the Greeks ?
Tax are really well managed by there it's a known fact Anyway if there were no taxes that would be a total chaos in every countries !
welshstew
Active member
Entertaining to read how you guys are trying to find solutions for Mike/Kier having to pay tax. Lol,
Not just those guys, I run my own side business too, so always looking for ways to keep more of my hard earned cash...
captainslater
Well-known member
Were you referring to the Greeks ?
Anyway if there were no taxes that would be a total chaos in every countries !
No I'm not refering to a specific country
Cezz
Well-known member
As most of the UK taxes have gone into bailing out the banks recently, and after doing that it was ruled that it is legal for the banks to charge its users £100's of pounds in overdraft charges a month I have to disagree...
Why am I paying taxes to fund banks that then take more money from me :S... I don't understand this..
Why am I paying taxes to fund banks that then take more money from me :S... I don't understand this..
cedivad
Active member
It's quite easy. We live in a world where the only important things is MONEY. I think you should watch Zeitgeist Addendum. It's 60% wrong but it gives you an idea.
