Forum Moderators: martinibuster
I haven't been living in the uk for the last 6 months, just travelling the world. I don't own property in the uk. I'm lazy I guess but I figured I'd just keep on paying uk taxes as it's easier.....Now I'm not so sure.
If you're in Belize one month, the states the next, two months later in canada, then Poland and Switzerland, and you make a lifestyle of this, where do you pay tax?
My accountant said it's the location of the servers that's the key, but still he said there are a lot of grey areas with contextual advertising and affiliate marketing.....Wondered if anyone had any input.
Are Your travels not all to ad new pages?
Are not all Your travels business expenses?
About 2/3 of my turn around are business expenses, so the tax does not eat me.
Regarding expenses, I spoke to my accountant about claiming ALL travel as an expense.....He said that's a great way to get flagged for an audit.
Of course anyone could buy a domain like StTropezLife.com, live in St Tropez for 6 months for research purposes and in a year or two roll out a little content site.
Then repeat the above with every new place visited, but would that not be stretching credibility a little?
>> 40 percent plus national insurance contributions of 8 percent,
I make it out to be a lot more. The national insurance works out to, I think, 23.8% if you add both employer and employee's contributions (both of which you have to pay).
>> And once they get their teeth into you they are like pit bulls.
They are but with the help of a good IR inspection tax specialist you can wear them down. Tip: The tax inspector investigating your case doesn't stay in his job long. And, he has an incentive to "close" cases before he moves on. ;)
Your StTropezLife.com idea won't work. If the site's not making enough profit it's transparently a tax dodge.
>> My accountant said it's the location of the servers that's the key
There's no key. IR is capable of presenting any argument if they believe it will net them more tax. The trick is to pre-empt those arguments and create conditions for those arguments to be easily disproved.
The tax havens subject is a minefield. And, it's changing everyday. Many ex-havens have capitulated to the EC and are willing to disclose your private affairs to the IR. Others may follow. I'd look for a country/tax haven with a no-double-taxation agreement with the UK. Like the Isle of Man. Pay tax there at the lower rate and the IR can't touch you.
Ask you accountant about SIPPs
Crappy NHS, 2nd rate public transport system.
At least we know are tax pounds are being wisely spent......Makes you proud to be British.
I've been long arguing that tax is cleverly taken from us in a variety of ways, under different names, and with a stealth that would make pickpockets blush with envy. It's so cleverly done that 99% of people I speak to seem to have fallen hook, line and sinker for all the spin. They typically estimate the amount they've paid in tax at less than 50% of what they really paid.
SIPPS will be gaining popularity with the expanding of assets you can hold under them.. including, soon, residential property and equity. But, beware, there's no accounting for what a future government may do. Remember Gordon Brown's raid on pension funds? Apart from death and taxes you can be sure of one more thing: when a government needs/wants money badly enough there's no depth to which it won't sink.
Regarding expenses, I spoke to my accountant about claiming ALL travel as an expense.....He said that's a great way to get flagged for an audit.
You have ad channels to show from wehre Your income comes.
For example You have $5000 travel expenses, so this travel should generate $100 per month AdSense income.
Not every journey can be the same success. So maybe 10 journeys $50.000 expenses should create at last $1000 income.
If they create only $100, the IRS would say hobby and private expenses.
Even when they recognice only 50% of Your travel expenses, this would reduce the tax very much.
