• Welcome to DOSBODS

    Please consider creating a free account to be able to access all the features of the DOSBODS community. It only takes 20 seconds!

Sign in to follow this  
Austin Allegro

Legitimate tax avoidance methods

Recommended Posts

I thought readers might like to share their (legal) tax avoidance methods, for all of us concerned about the amount the state wastes on its inefficiency,  benefits culture and crackpot schemes. 

Here's a few I use. Most will save you money anyway in addition to being tax free. 

- Use tradesmen from small companies that are under the VAT threshold. 

- Brew your own alcohol.

- Buy tobacco on the continent, it is generally much cheaper than in the UK and the tax won't go to HMRC.

- Put as much money as you can in a pension

- Use tax free savings vehicles like ISA

- Drive a zero tax rated car - no VED payable and less money on fuel duty.

- Buy second hand whenever possible. No VAT payable. 

- If you smoke, change to snuff. It is not taxed and is much cheaper. 

- Most food is tax-free but some is not so avoid confectionery, crisps and savoury snacks, hot food, sports drinks, hot takeaways, ice cream, soft drinks and mineral water.

- Make money from matched betting - gambling winnings are tax free. 

- Rent out a spare room, you get tax free income up to a certain amount. 

- If self employed, restructure your work and manage your expenses etc so that you get the maximum tax free allowances. 

 

Share this post


Link to post
Share on other sites

Very good checklist.

I would add:

Get an electric car so saving all that duty, VAT, and money to the House of Saud.  It's not currently practical for me.

Insulate your house and generate your own power. Not practical if renting.

Do a @Turned Out Nice Again and move into a van so avoiding vast amounts of council tax.

Share this post


Link to post
Share on other sites
On 31/01/2018 at 16:55, Austin Allegro said:

- Drive a zero tax rated car - no VED payable and less money on fuel duty.

Or ditch it and get a <£1000 diesel from before the DPF era and put the £200 PCP money in to your pension via SS :)

Share this post


Link to post
Share on other sites
On 2/4/2018 at 13:11, spunko2010 said:

The Telly Tax is a tax too, so cancel the Direct Debit :D

Good point. All channels except BBC can be viewed legally without charge on a laptop if you use catch-up services.

BBC radio is also free of charge through internet and on the air. 

Share this post


Link to post
Share on other sites
13 minutes ago, Austin Allegro said:

Good point. All channels except BBC can be viewed legally without charge on a laptop if you use catch-up services.

BBC radio is also free of charge through internet and on the air. 

The piece is rather ambiguous but it remains cheering that 3.5 million people have cancelled their TV licence over the last four years :)

Quote

 

Figures obtained under Freedom of Information rules show 788,605 people cancelled in 2017.

In the preceding years it was 817,509, 875,169, and 945,751.

Tory David Davies said: “These reflect that millions of people feel that the So-Called BBC no longer reflects their outlook on life.

“If the So-Called BBC don’t start representing the large slice of the populace, who support Brexit and worry about immigration, then we will end up having to move towards a subscription service.”

 

https://www.thesun.co.uk/tvandshowbiz/5167904/licence-fee-amazon-prime-netflix-bbc/

Share this post


Link to post
Share on other sites

Can someone explain how gifting to charities can be tax effective in the UK?  I've never been able to work out why the rich do it so much (except where they set up a new charity and employ their relatives - that makes sense)

Share this post


Link to post
Share on other sites
On 19/02/2018 at 16:53, wherebee said:

Can someone explain how gifting to charities can be tax effective in the UK?  I've never been able to work out why the rich do it so much (except where they set up a new charity and employ their relatives - that makes sense)

Well it's tax effective in that you deduct the payment to the charity but you'd be much better off if you didn't make the donation in the first place.

 

What you need to remember is that there are divisions of wealth.

  • There are the poor / indebted who live from week to the next.
  • There are the those more comfortable but still have to work.
  • etc.
  • By the time you get to billionaire level and already have the crewed luxury yacht, half a dozen houses, and holiday when you want then you start thinking differently about money.  You have far more than you, or your children, could possibly spend so then you start to think about how you can use your money to buy influence and change the world how you want it t be chnaged.

 

You or I would put a fiver in the poppy tin because we want to help; we're not buying influence or (indiviudlaly) making a change. 

Soros would donate millions to "philanthropic" organsiations because he wants to weaken European nation states.  Warren Buffet / Bill Gates use their billions to reduce disease and poverty.

There is charity and charity.

Share this post


Link to post
Share on other sites
On 2/19/2018 at 16:53, wherebee said:

Can someone explain how gifting to charities can be tax effective in the UK?  I've never been able to work out why the rich do it so much (except where they set up a new charity and employ their relatives - that makes sense)

It used to be much more tax effective until Gideon closed that loophole. AFAIK it was never re-opened.

https://www.theguardian.com/society/2012/apr/07/george-osborne-charities-donation-tax-revolt

 

In the USA it's still possible and the deductions are much more generous.

A lot of companies do it to reduce corporation tax burdens as well - as these are only paid on profits.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.