Monday, 6 October 2014

If You’re Rich Enough, You Could Avoid The Eyes of the HMRC



It actually pays to become rich, literally, because you have so much money and the only trouble you have is spending it faster than you could hide it, or you could spend to hide it. Many in the United Kingdom use their money for the latter. UK millionaires may give you an insight on how to hide you money effectively from the HMRC.

1.    Incorporate a Business

Start a small business and have it pay you as an employee of the business. Employ your significant other and you both get reduced tax rates and benefits. This is opposed to paying 60% against 40% of your taxable income. Any income going over £100,000 automatically has an additional 20%, which is quite a painful load for any millionaire. Incorporation benefits also add more tax deductibles to your business activities.

 2.    Give to Charity

Giving to a charity or NGO gives you a tax deductible, but only to a point. It would be unwise to give to charity more than your income. But being a millionaire, such an income wouldn’t be too much of a burden for you. Just give enough money to the charity and you could get it back.

3.    Self-Employed

For self-employed individuals, declaring a living space as your workplace helps you have tax deductibles that you could use for renovation and improvement. For millionaires, having a tax deductible home helps them purchase the latest technological improvements for their home in the name of self-employment.

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