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    (Original post by Nick_000)
    I'm sure you pay some form of taxation if the person dies within ten years of a property transfer or something?
    Seven years, I believe. You can transfer it to your kids, for example, and pay no capital gains tax (assuming main residence) and no stamp duty. However, if you die before the seven years are up, it will still be liable for inheritance tax (the most disgusting of the three disgusting taxes I've mentioned)

    To the OP: It's all about tax avoision, not tax evasion. If you start turning over a decent amount, then a good accountant is worth their weight in gold...
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    Op, you need to look into this a lot more - your calculations are wildly out.

    (Original post by Elipsis)
    I don't think they will be willing to help me start up this business. It's basically just selling legal highs... I was under the impression corporation tax was higher than 21-28%. How do they justify taxing the businesses profits and then taxing wages? 99p in a £ must go through the treasury.
    You've listed as overlapping taxes which do not overlap. Most importantly, wages and profits do not overlap. If your company makes £10,000 and pays you £10,000 as a wage, it won't be making any profit.

    Corporation tax is levied on company profits. You do not pay this tax unless you actually incorporate a company - just running a "business" does not trigger this tax. This has all sorts of advantages and disadvantages: the company is a completely seperate legal entity, even if you own all the shares.

    If you do incorporate, corporation tax does not overlap with National Insurance - NI is charged on wages. Wages are taken out of the equation before profits are calculated. If your company makes £10,000 in a year, and you pay yourself a salary £10,000; the company has not made any profit and so there is no corporation tax. If you keep the profit in the company and instead declare a dividend of £10,000 on your shares; you will pay corporation tax but you won't pay NI, and will pay less income tax than if you took the money as a salary.

    If you don't incorporate, you will pay income tax, VAT and import tax.

    As the above poster pointed out, some of your figures are wildly out.
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    (Original post by Hugh-Jackman)
    What if the person that has died sold the property for peanuts to her son/daughter???
    I think, there's a potential tax hit (capital gains I think) if the son/daughter sells within a certain time period...but I'm not sure. Stuff like this is why I pay a lawyer and an accountant.
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    Without the tax you pay innocent politicians will go without their moats and porn. Are you willing to have that on your conscience? :hmmm:
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    (Original post by George231086)
    Are you selling things like salvia? If you're good at chemistry you should create a chemical similar to LSD but one that hasn't been legislated against.
    It's not salvia, closer to your second suggestion actually.
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    (Original post by Elipsis)
    I am in the process of starting up a business, here is just a quick summary of all the tax I will be paying:

    Import tax: 22.5%
    VAT: 17.5%
    Corporation Tax: 30-40%
    Income Tax: 20-50%
    NI: 11%

    How ridiculous is that? I am paying tax on the same product like 4-5 times... the government really screws you from every angle.
    Note it is the socialist government screws you, they don't like businesses having too much money.
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    (Original post by jacketpotato)
    Op, you need to look into this a lot more - your calculations are wildly out.


    You've listed as overlapping taxes which do not overlap. Most importantly, wages and profits do not overlap. If your company makes £10,000 and pays you £10,000 as a wage, it won't be making any profit.

    Corporation tax is levied on company profits. You do not pay this tax unless you actually incorporate a company - just running a "business" does not trigger this tax. This has all sorts of advantages and disadvantages: the company is a completely seperate legal entity, even if you own all the shares.

    If you do incorporate, corporation tax does not overlap with National Insurance - NI is charged on wages. Wages are taken out of the equation before profits are calculated. If your company makes £10,000 in a year, and you pay yourself a salary £10,000; the company has not made any profit and so there is no corporation tax. If you keep the profit in the company and instead declare a dividend of £10,000 on your shares; you will pay corporation tax but you won't pay NI, and will pay less income tax than if you took the money as a salary.

    If you don't incorporate, you will pay income tax, VAT and import tax.

    As the above poster pointed out, some of your figures are wildly out.
    I see. So all we're gonna have to pay is basic income tax + NI?
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    (Original post by Elipsis)
    I don't think they will be willing to help me start up this business. It's basically just selling legal highs... I was under the impression corporation tax was higher than 21-28%. How do they justify taxing the businesses profits and then taxing wages? 99p in a £ must go through the treasury.
    It's something like 36p in the £, which is actually a hell of a lot.
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    (Original post by Elipsis)
    I'm not selling it as a legal high. It's not for human consumption lol. I already have the next few chemicals lined up to sell, so i'll always be 2 steps ahead of our crappy government.
    London underground pills and that sort of thing then? Shame they banned the BZP in those things really, it was a little safer than the crap some of those companies are sticking in their pills now.

    I know a few suppliers which are pretty decent, I still have about a pound of salvia in one of my cupboards :p: . I gave up on that stuff because I didn't want to get a reputation for it, but if you want any help pm me.


    On the tax side: My parents are directors on a company that turns over about £1.2 million a year, makes about £280,000 profit per year (they don't get all of that, they own 45%) and their accountant's been excellent, it still pays a huge amount of tax, but significantly less huge than it would have been.
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    (Original post by Elipsis)
    It's not salvia, closer to your second suggestion actually.
    Are you going to set up a website?

    The guy that created BZP has made a fortune.
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    (Original post by Elipsis)
    Might be a bit hard to operate? My friend is a tax law expert so hopefully we should be able to do our fairshare of dodging together.
    Lucky guy. An acquaintance of mine is also a tax expert (multi-millionaire), one of the best in the country at Tax litigation and he saves companies so much lol. Milk your friend for all the free advice you can get :p:
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    (Original post by TShadow383)
    London underground pills and that sort of thing then? Shame they banned the BZP in those things really, it was a little safer than what some of those companies are sticking in their pills now.

    I know a few suppliers which are pretty decent, I still have about a pound of salvia in one of my cupboards . I gave up on that stuff because I didn't want to get a reputation for it, but if you want any help pm me.
    BZP isn't banned yet? What is in London underground pills?
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    (Original post by George231086)
    Are you going to set up a website?

    The guy that created BZP has made a fortune.
    Yup I am. I have 1 chemical coming in soon, and 2 more to follow when the government bans that. If they feel like banning those i'm sure something else can be found:rolleyes:.
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    (Original post by Elipsis)
    BZP isn't banned yet? What is in London underground pills?
    http://news.bbc.co.uk/1/hi/uk/8061693.stm

    I thought this had gone through already, either way most of the suppliers in the UK no longer have it since it's about to be banned...

    Personally, I think the safety side's up to the person taking it, just whatever you're going to be doing with this company make sure you inform people of the risks. I think the people who died from BZP mostly took multiple pills and suffered cardiac arrest.
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    (Original post by TShadow383)
    http://news.bbc.co.uk/1/hi/uk/8061693.stm

    I thought this had gone through already, either way most of the suppliers in the UK no longer have it since it's about to be banned...

    Personally, I think the safety side's up to the person taking it, just whatever you're going to be doing with this company make sure you inform people of the risks. I think the people who died from BZP mostly took multiple pills and suffered cardiac arrest.
    Ah I see. BZP is total junk though, I have no idea how anyone would take it? Since when is one death a reason to ban something, bloody caffine has killed more people than that in a day. I cannot offer advice on ingesting the product because then I will be prosecuted under the medicines act, it is labelled not for human consumption. My reasoning behind this is that the 2 greatest risks when taking any drugs are that the police catch you and you ruin your life, or it's cut and it kills you. The product will be legal, so the police can't ruin your life, and 99% pure so it isn't cut.
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    (Original post by Elipsis)
    I see. So all we're gonna have to pay is basic income tax + NI?
    Yes. If you don't incorporate, there is no "special" tax that attaches just because you are running a business: the situation only changes if you register a company. As a self-employed person, you also pay less NI: the details are on the HMRC and www.direct.gov.uk website.

    My advice would be to keep all receipts and keep good records. This will allow you to claim back VAT in full (VAT is a tax on value-added... so if you buy something for £10, and sell it for £15, you pay VAT on the £15 but claim back VAT for £10; with the net result of paying VAT on £5). It will also allow you to make sure you don't pay income tax on any expenses, and to prove those expenses to the tax man.
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    (Original post by Elipsis)
    Ah I see. BZP is total junk though, I have no idea how anyone would take it? Since when is one death a reason to ban something, bloody caffine has killed more people than that in a day. I cannot offer advice on ingesting the product because then I will be prosecuted under the medicines act, it is labelled not for human consumption. My reasoning behind this is that the 2 greatest risks when taking any drugs are that the police catch you and you ruin your life, or it's cut and it kills you. The product will be legal, so the police can't ruin your life, and 99% pure so it isn't cut.
    True, these things are always faar safer than the illegal alternatives, simply because it's easier to track down the suppliers if what they're selling is fake and dangerous.
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    (Original post by TShadow383)
    True, these things are always faar safer than the illegal alternatives, simply because it's easier to track down the suppliers if what they're selling is fake and dangerous.
    In a perfect world ecstasy would be legal. There aren't many drugs that are as safe as ecstasy available, and I worry as each new combination is made to get around it the more dangerous it will be.
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    (Original post by jacketpotato)
    Yes. If you don't incorporate, there is no "special" tax that attaches just because you are running a business: the situation only changes if you register a company. As a self-employed person, you also pay less NI: the details are on the HMRC and www.direct.gov.uk website.

    My advice would be to keep all receipts and keep good records. This will allow you to claim back VAT in full (VAT is a tax on value-added... so if you buy something for £10, and sell it for £15, you pay VAT on the £15 but claim back VAT for £10; with the net result of paying VAT on £5). It will also allow you to make sure you don't pay income tax on any expenses, and to prove those expenses to the tax man.
    Thanks very much for your help.
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    (Original post by Hugh-Jackman)
    What if the person that has died sold the property for peanuts to her son/daughter???
    It will be all traced afaik - they aren't dumb enough to be. Same with insolvency; you can't simply start offloading everything to friends at undervalue.

    Best way to get around inheritance tax is max out your 'gift' payments and also stay prepared. E.G my parents recently bought a second home, yet my sister and I own 25% each

    also, best thread on TSR in a while
 
 
 
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