How to Avoid Being Over Taxed
VAT used to be 17.
5%, it was then dropped to 15% to help create the illusion that the government was trying to help the population.
However, we are now looking at an increase to 20% which is very high.
This will be applied to everything and will be unavoidable in day to day life.
Just as people's financial circumstances are starting to improve, this is causing quite an upset.
One of the best ways to avoid tax is to spend some time in another country, like China.
Whilst there you could get a job with a foreign company, and any money you make in the UK for the year your away, won't be up for tax because you weren't present in the country.
If you are able to find a foreign owned company in China that you can work for, they will pay you in RMB which you will keep in your Chinese bank account.
After a year or so it might be possible to return to the UK and still keep doing the job for that company from home, this is especially true for web based work such as SEO.
This work can be done from home in the UK, all the while the company is putting RMB into your Chinese account.
Once such an amount has been met, you travel back over there and withdraw all that money.
Then you can bring it back over in a secure case and exchange it for English pounds! Thus avoiding any tax that may have been applied to that amount if you had made it in the UK.
Do note that this is not tax evasion and is a perfectly legal practice that many people do.
This method is very popular among expats, who often transport large sums of money between the two countries.
China has become wise to this by putting a limit of $50,000 dollars on the amount that any one person can bring in.
Having so many dollars coming in dilutes the strength of their own currency and they don't want to be dependent on such a volatile currency.
Obviously moving such large quantities of money between countries is risky.
Someone could steal your bag or if your placing the money bag on the plane, it could get lost (not that anyone with half a brain would let a bag full of money go out of sight!).
Clearly it depends on what kind of job you can get in the other country and your circumstances.
Not everyone will go to such lengths but those that do reap the rewards.
Freelance English teachers are the ones who can exploit this to a high level.
Nearly anybody can teach English in China and get paid for it, so freelance teaching can make you a lot of money in China and you can live very comfortably indeed.
It's even better if your schools pay you in cash for your part time work.
This article does not condone tax evasion, it simply gives you some ideas on how to avoid tax, which is completely different to evasion! Going the extra length and doing something a little far out often has big rewards, especially when it comes to money!
5%, it was then dropped to 15% to help create the illusion that the government was trying to help the population.
However, we are now looking at an increase to 20% which is very high.
This will be applied to everything and will be unavoidable in day to day life.
Just as people's financial circumstances are starting to improve, this is causing quite an upset.
One of the best ways to avoid tax is to spend some time in another country, like China.
Whilst there you could get a job with a foreign company, and any money you make in the UK for the year your away, won't be up for tax because you weren't present in the country.
If you are able to find a foreign owned company in China that you can work for, they will pay you in RMB which you will keep in your Chinese bank account.
After a year or so it might be possible to return to the UK and still keep doing the job for that company from home, this is especially true for web based work such as SEO.
This work can be done from home in the UK, all the while the company is putting RMB into your Chinese account.
Once such an amount has been met, you travel back over there and withdraw all that money.
Then you can bring it back over in a secure case and exchange it for English pounds! Thus avoiding any tax that may have been applied to that amount if you had made it in the UK.
Do note that this is not tax evasion and is a perfectly legal practice that many people do.
This method is very popular among expats, who often transport large sums of money between the two countries.
China has become wise to this by putting a limit of $50,000 dollars on the amount that any one person can bring in.
Having so many dollars coming in dilutes the strength of their own currency and they don't want to be dependent on such a volatile currency.
Obviously moving such large quantities of money between countries is risky.
Someone could steal your bag or if your placing the money bag on the plane, it could get lost (not that anyone with half a brain would let a bag full of money go out of sight!).
Clearly it depends on what kind of job you can get in the other country and your circumstances.
Not everyone will go to such lengths but those that do reap the rewards.
Freelance English teachers are the ones who can exploit this to a high level.
Nearly anybody can teach English in China and get paid for it, so freelance teaching can make you a lot of money in China and you can live very comfortably indeed.
It's even better if your schools pay you in cash for your part time work.
This article does not condone tax evasion, it simply gives you some ideas on how to avoid tax, which is completely different to evasion! Going the extra length and doing something a little far out often has big rewards, especially when it comes to money!