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Frank Hovis

How to pay no income tax

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I have posted similar before but here's a quick guide.

You pay income tax on two things:

Earned income

Investment income

To Avoid Tax in Earned Income

There is a big hurdle here, you need to be able to annually invest cash at the approx level of your gross salary less your personal allowance.  If you can't do this you can't save it all but you can still save a lot.

Pension contributions into a SIPP: up to £40k a year less any other pension contributions. If you have a defined benefit co. pension then you have to calculate this as as a multiple of the benefit, about 15x is a good guess.

These pay tax relief at your top rate.

Then you can invest the balance in Venture Capital Trusts which pay tax relief at up to 30% so mop up the rest of your paid tax.

Investment Income

There is no tax upon investment return in any of:

ISA

SIPP

VCT

Which over decades will make a huge difference to your investment balance.

 

Plus you get a nice warm glow from knowing that you are paying zero income tax for HM Government to waste!

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I will add:

  • First £1K of interest earned
  • First £5K £2K of dividend income
  • Income from feed in tariff
  • First £4K? from renting a room
  • First £1K of selling stuff on eBay

are tax-free. 

I'm interested in your recommendations on getting started with VCTs. 

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To which I would add:

Use small firms to do jobs for you, the turnover of which is under the VAT threshold so you do not pay VAT. Some small firms advertise this as a benefit, but if in doubt ask.

Buy things second hand wherever possible - cheaper anyway but  no VAT to pay. 

Drive a zero tax rated car - no Vehicle Excise Duty to pay.

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Good general advice.

Don't obviously put all your eggs to the above baskets. We don't know what kind of government will be in place in the future - they can always change the rules. If we become a Marxists/Communist state (and worryingly we might), all bets are off.

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14 hours ago, 201p said:

Good general advice.

Don't obviously put all your eggs to the above baskets. We don't know what kind of government will be in place in the future - they can always change the rules. If we become a Marxists/Communist state (and worryingly we might), all bets are off.

I agree about the SIPP but the benefit is so good it's worth the risk.

VCTs pay back huge dividends as they cash in their investments so I've got to the stage where they're paying for themselves, that is the annual divdend matches my annual investmnet, and it's just about tipping into a net annual credit which is only going to increase so I am shortly going to be taking more out of them than I put in each year.

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I have a left field theory which may not belong on this thread.

The NWO hasn't gone away, I think it's just taken on a new clandestine direction, now that it has been found out, and now that we have our "friend" Trump fighting the "globalists" for us.

If the NWO directive is to control the population numbers, it can be done incredibly efficiently through Communism. And we'll soon be voting for it soon.

With the banning of F1 girls, the rise and domination of identity politics in the media each day, and gender wars, under the guise of progressiveness there doesn't seem to be any resistance - if there is they are bowing quietly away. We're fast moving in a new direction that we won't realise until we're there already and it's too late. We'll be told that you must be Vegan or you're worse than Hitler.

Walk or if you use a car you're polluting the planet, and you're worse than Hitler.

If you breath, you're using up oxygen, and you're worse than Hitler. There is no middle ground.

That's fine with me - I am not the elite, and not worried if the economy does nothing for then next 100 years. I don't have billions in share holdings or land that needs to be yielding. I don't own the Telegraph or the Daily Mail, or have a big interest in the Conservative party - but hell, they must be worried because their holdings will be worth zip in the new world.

What's it going to be then? Communism or Food? There is no middle ground.

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Looking far into the future, be self sufficient where you can, so don't have to rely on so much income (which maybe harder to come if they raise taxes).

The Mogg incident recently is just another event in the cultural/identity war. Milo talked about this cycle not involving a war on drugs, or a war in a foreign land, but this is a cultural identity war*. Most people, left or right, just want to be left alone, and not be under control, and told what to do, work wear, or eat. He is right.

*This is dangerous as this happens on home soil, and we've not seen what this war would look like. Who benefits from this war? Who is stoking this up?

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17 hours ago, stokiescum said:

the country is reliant on us buying shit we dont need though.

 

16 hours ago, One percent said:

The whole capitalist system....

The economy as it is; everyone stops buying and GDP plummets.

And the problem is?

There will still be sufficient tax revenues to look after the sick and disabled and to pay pensions to the old.

The axe will need to be taken to tax credits, housing benefit, foreign aid, vanity projects such as HS2, road building, house building, unnecessary layers of management and government etc.

 

There will be a big drop in house prices and rents, immigration will go into reverse and the population will fall, unwanted houses will tumbledown back into nature as in Detroit, lengthy commutes (guilty) will cease as wages will not support them, people will buy things (cars, phones) to last rather than to upgrade, waste and rubbish will be a fraction of the current levels, wildlife will flourish, and everyone will be happier and value the people and environment around them far more.

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2 minutes ago, Frank Hovis said:

 

The economy as it is; everyone stops buying and GDP plummets.

And the problem is?

There will still be sufficient tax revenues to look after the sick and disabled and to pay pensions to the old.

The axe will need to be taken to tax credits, housing benefit, foreign aid, vanity projects such as HS2, road building, house building, unnecessary layers of management and government etc.

 

There will be a big drop in house prices and rents, immigration will go into reverse and the population will fall, unwanted houses will tumbledown back into nature as in Detroit, lengthy commutes (guilty) will cease as wages will not support them, people will buy things (cars, phones) to last rather than to upgrade, waste and rubbish will be a fraction of the current levels, wildlife will flourish, and everyone will be happier and value the people and environment around them far more.

I too don’t see a problem Frank. 

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5 minutes ago, stokiescum said:

it gets more tempting every day to just work 2 days a week and sod the system,but im not sure if my liver could cope

Ha ha.

I console myself that by legitimately avoiding most taxes (income tax, TV licence, VAT by rarely buying things) I'm not contributing much to the problem in the first place.

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13 minutes ago, stokiescum said:

it gets more tempting every day to just work 2 days a week and sod the system,but im not sure if my liver could cope

Three days for me. :Passusabeer:

by the time they have taxed me, taken national insurance that will not give me an income if I fell on hard times, and pension contributions that won’t pay out before I die, it really isn’t worth doing anymore. 

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On 2/4/2018 at 10:03, stokiescum said:

it gets more tempting every day to just work 2 days a week and sod the system,but im not sure if my liver could cope

When my eldest worked at Spoons, one of the kitchen guys only worked 2 x 12 hour shifts, Saturday and Sunday. Those 24 hours gave him enough WTC and HB to get by and he got Monday to Friday off.

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On 04/02/2018 at 10:03, stokiescum said:

it gets more tempting every day to just work 2 days a week and sod the system,but im not sure if my liver could cope

Haha I work 2 days a week but get round the drinking problem by being involved with a couple of local sports teams. I can't really play properly if I've been out on the lash the night before, and most people in the pub respect that and don't laugh at me (too much) if I stick to just two pints. 

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On 04/02/2018 at 10:12, Frank Hovis said:

Ha ha.

I console myself that by legitimately avoiding most taxes (income tax, TV licence, VAT by rarely buying things) I'm not contributing much to the problem in the first place.

I recently saw a good video on Youtube about people in the US who live in camper vans, travelling around the country while working occasionally, and organising meet ups of like minded people on social media. These weren't gyppos - they were educated, professional people who had seen through the rat race and consumer society. One man, who said he lived well on $US  500 per month, said something which stuck with me, which is if you want to 'stick it to the man' don't bother with revolution, just live frugally, because then you are depriving the system of what it needs. 

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Must be about 30 or 40 years ago but there was a piece on tv about a middle class American guy that threw in the towel. Quit his job and sold almost everything he had. Bought a dirt farm in some flyover state and lived on food stamps plus what he could grow.

According to him, in America, you need to be either extremely rich or extremely poor.  

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6 hours ago, jm51 said:

 

According to him, in America, you need to be either extremely rich or extremely poor.  

Never a truer word spoken, same for the UK nowadays.

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On 24/05/2018 at 13:49, Austin Allegro said:

I recently saw a good video on Youtube about people in the US who live in camper vans, travelling around the country while working occasionally, and organising meet ups of like minded people on social media. These weren't gyppos - they were educated, professional people who had seen through the rat race and consumer society. One man, who said he lived well on $US  500 per month, said something which stuck with me, which is if you want to 'stick it to the man' don't bother with revolution, just live frugally, because then you are depriving the system of what it needs. 

I worked with somebody who lived on his boat in a (hard-standing) boatyard and he said there was a small community there; the boats were seaworthy but generally spent a year or more in the boatyard with occasional moves to new boatwards for travelling to work or just fancying somewhere new.

From what he said it was all men, probably the victims of bad divorces as it's a very cheap way to live.

In a sense there's a whole documentary there but they try to keep it quiet because of the government's penchant for legislatiing against people having low housing costs meaning that they would either outlaw it or require an expensive residential licence.

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On 24/05/2018 at 13:49, Austin Allegro said:

I recently saw a good video on Youtube about people in the US who live in camper vans, travelling around the country while working occasionally, and organising meet ups of like minded people on social media. These weren't gyppos - they were educated, professional people who had seen through the rat race and consumer society. One man, who said he lived well on $US  500 per month, said something which stuck with me, which is if you want to 'stick it to the man' don't bother with revolution, just live frugally, because then you are depriving the system of what it needs. 

 

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I read an article about  Americans past retirement age with camper vans that do seasonal work. Once that's done, they drive to the next place that has seasonal work. Amazon employs a lot of them.

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On 26/05/2018 at 12:20, jm51 said:

I read an article about  Americans past retirement age with camper vans that do seasonal work. Once that's done, they drive to the next place that has seasonal work. Amazon employs a lot of them.

I know a near retirement age EHO who has a whopper of a Mobile Home and does contract EHO jobs in the nicer parts of the UK. Tower Hamlets (pass) North Somerset (yes please). 

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