[Closed] Tax avoidance advice please

Is it paid before April 6th?

Good question, I suspect it'll be paid end of April, but i'll double check my documents. I'm considering seeing if I can start a month earlier.

EDIT: Yeah it'll get paid 28th April if I start in April as I am currently set to.

Absolutely no legitimate reason you "should get your arse handed to you"

As above get it paid before April 4/5/6 (whatever date is tax year end)
If that's not possible you may consider putting a lump sum into your pension this year, of course you can't access that cash until you retire but you know you have £10k less tax coming so could clear out some savings now and into pension ?

As an aside when 50% tax rate was announced companies up and down the country accelerate bonus payments into the current tax year so 40% and paid no bonus in the 50% tax year. Perfectly rational and legit.

Yes there is Jamba - tax avoidance is immoral as you would know if you had any morals. People moan about not having decent public services then do everything they can to avoid paying a fair amount of tax.

Tax evasion is illegal. Tax avoidance isn't.

Cycle to work is tax avoidance. Do you consider it immoral?

It's not immoral: it's sensible.

Tax evasion on the other hand is immoral. And illegal.

If its not used to ride to work yes.

Nothing wrong with optimizing tax within the rules, most people would think nothing of putting money into a spouse's bank account if that'll reduce tax paid. similarly waiting to put money into a pension until can get higher rate tax payer so get more tax back. Also using losses to offset future tax isn't a bad thing is it?

Cycle 2 work is only tax avoidance if your using it for funding your new gnarpoon instead of a modest bike to cycle to work on as intended.

tjagain - Member 
Yes there is Jamba - tax avoidance is immoral

Immoral isn't illegal though, and one persons immoral tax avoidance is another persons wise tax planning. No one sees it immoral to put your money in an ISA and yet that is tax avoidance.

[I]"No man in the country is under the smallest obligation, moral or other, so to arrange his legal relations to his business or property as to enable the Inland Revenue to put the largest possible shovel in his stores. The Inland Revenue is not slow, and quite rightly, to take every advantage which is open to it under the Taxing Statutes for the purposes of depleting the taxpayer's pocket. And the taxpayer is in like manner entitled to be astute to prevent, so far as he honestly can, the depletion of his means by the Inland Revenue" - Lord Clyde, 1929[/I]

And, we're away!

Sorry Cougar - I couldn't resist it 😉

I shall go and sit in a corner

Didn't take long to get away from the OP's original question did it?!

Bearing in mind a lot of us here are middle class, probably working in IT, wealthy tax avoiding scum, hence can afford the bikes 😈

People moan about not having decent public services then do everything they can to avoid paying a fair amount of tax.

Part of the problem is that we have such a ridiculously complex tax system with a myriad of rates and exemptions, hence 'fair' is quite hard to define. E.g. Using up your £40k annual pension allowance would save you £16k in tax in the current year, although you're likely to be taxed in the future on it (probably at 20%).

Interesting article on just how generous our tax exemptions are:
https://www.theguardian.com/money/blog/2016/apr/30/britain-savers-paradise-tax-breaks-few-benefit

Congratulations on your bonus! Spend it wisely(*) !

(*) Well, the ~50% or so of it the government lets you keep.

Open an account in Monaco, place it there.

tj I don't think you can argue that the cycle to work scheme is moral. It is not in practical terms open to everyone and the higher rate tax payer derives a far greater saving than the lower rate tax payer.

I know a couple of folk who have used it to buy a cheap commuter for work and who have stated riding to work as a result. I have no objection to that. Greater good and all that.

I also know someone who earns quite a lot more than me but is able to avoid tax so pays less tax - and the things he claims as tax deductable are laughable.

No, its paid in the next fiscal year.

Good question, I suspect it'll be paid end of April, but i'll double check my documents. I'm considering seeing if I can start a month earlier.

You don't need to start a month earlier, just early enough to get paid something (and your bonus) in March.

I also know someone who earns quite a lot more than me but is able to avoid tax so pays less tax - and the things he claims as tax deductable are laughable.

captain - his fault as he claims as work expenses things that are not - and his accountant colludes with him. Its the norm for people who are self employed IME

captain - his fault as he claims as work expenses things that are not - and his accountant colludes with him. Its the norm for people who are self employed IME

As above. Tax evasion as you describe is illegal. Tax avoidance isn't.

You don't need to start a month earlier, just early enough to get paid something (and your bonus) in March.

To get paid in March I'd have to start 3-4 weeks earlier. I'm not sure it'd be feasible though as I need to work my current notice period (Which I might be able to wriggle out of but not sure) and the new job involves a house move which we've pretty much planned and this might complicate it.

Just a bit annoying because I'll end up paying £2-3k more in tax if I start in April rather than March.

Cheers for the replies though everyone.

Not just your inconvienance to start earlier. Might find the bonus is only approved for the new financial year

Ask for it in cash!

TJ as you know I don't care about the Pantomime Villan tag. We keep telling people about the Laffer curve but some chose not to listen. The public expects a discount for cash jobs, how do you think the tradesman calculates a lower price ?

They are having a Referendum in Surrey about 15% increase in council tax to plug budget hole for social care. Surrey like frankly everywhere else in the country (imo) is going to vote no. Taxes are things everyone else should oay more of .... not "me" though as I can't afford to pay more

Let's rip up all tax law and make payment based purely on morals. See how we get on shall we ?

We keep telling people about the Laffer curve but some chose not to listen

Telling them what though? It's just two points, a load of extrapolation and is interpreted to mean whatever the poster wants it to, normally that tax is bad. Doesn't actually prove anything.

Laffer curve is proven nonsense dreamt up by right wing zealots to justify low taxation.

PSA, a more factual answer to the LC is available

Not that it's really relevant here

OP, why not talk to th company. They may have overlooked the tax implications. Talk to them, they may pay you in advance. If so, you could declare that correctly as income for the tax year. Otherwise, it looks, smells and sounds like income for next tax year.

Laffer curve is proven nonsense dreamt up by right wing zealots to justify low taxation.

I thought the 50% tax rate was cut to 45% and overall revenue from that rate went up?

(Or would it have gone up anyway due to asset inflation at the time? Who knows).

jambalaya - Member 
They are having a Referendum in Surrey about 15% increase in council tax to plug budget hole for social care

And it's being played by the council as "boo hoo, we're not getting enough money from central government and look at these poor children/adults who need social care, please agree to this increase", while the top exec team at Surrey County Council earn £1mil between them, the boss on at least £220k (even the PM earns less than this), and money is wasted on inefficiencies, pointless property investments and development schemes that councillors have financial interests in and are of little benefit to the county.

Spend our taxes wisely and there wouldn't be such a black hole, and I'd be happier paying the taxes.

Meanwhile I donate a fair whack to charity instead. Funnily enough that lowers my tax bill 😉 , but it's less money the tax man can take and waste and more that the charities get directly including the amount the gov would normally have taxed on my income. I pay the same whatever but it's going to the right people.

How immoral DK 😉 !!!