Friday, 22 June 2012

The Jimmy Carr Tax Trick.

Self-employed? Sick of paying tax? Here's how Jimmy Carr got away with paying 1% on his income.

  1. Resign from employment in the UK
  2. Establish a company based overseas
  3. Get hired by the offshore company, on a minimal salary, say £8,105 per year.
  4. Pay any earnings directly to the offshore company
  5. Receive large interest free loans from your company
  6. Declare these interest free loans as tax liabilities to reduce Income Tax payable to HMRC
It stinks so bad, I might have to try it.


Anonymous said...

Not tax avoidance.

Tax evasion.

I'm sure the taxman will 'ave 'im

John Galt said...

Nope, tax avoidance as the value of the loan and the necessary tax (about 1%) has been reported to HMRC and paid on the loan.

Tax will continue to be paid on it until the loan is settled, unless Mr. Carr decides he has had enough persecution and decamps somewhere warm to spend the fruits of his labours.

Certainly I would do it if I could.

SadButMadLad said...

Everyone could, but to many it's not worth it. I could do it, but I would probably save a few hundred pounds of tax but have to have a lot more hassle than just simple PAYE. So for me it's not worthwhile.

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