Need To Save Money on 34k's Worth of Tax (UK)?

Question

Hi everyone, I'm just going to explain my situation and if any of you could offer advice it would be greatly appreciated, (Im in the UK):

Over the last year I have made around £100,000 from various websites I set up.I received the money via cheque and deposited them in my barlcays current account. I also made that money when I wasn't registered as a business. I'm assuming this means I fall into paying tax as a sole trader....

And if so the rate will be extortionate (up to 40%). Is there a way I could incorporate now, so that I pay just 19%... and pay 19% on those earning even though they were paid into my bank when I wasn't registered?

Thanks,
Alex

P.S: Also if anyone happens to know of any viable schemes such as reinvesting in the business, etc please say

P.S. Could I for example buy a ready made shelf company formed 2-3 years ago, so that I can say I earned the money when I was incorporated, see:

http://www.sfsgo.com/shelfcompanylist.asp

Answer 1

You cannot back-date income in the way you suggest. get an accountant and have them compute the least expensive way of ordering your affairs, given the reality of what has gone on so far. Make sure they are Chartered or Certified.

you might think of investing in a pension plan, but that doesn't do a right lot for you. There are investment vehicles which will defer income tax, but you have to spend real pound notes to benefit.

Remember that incorporating is not so wonderful. There is still, to some extent, double taxation when you get your money out.

Answer 2

I'm rather annoyed that you are on this site asking for ways to avoid paying tax. The majority of the UK pay tax through the PAYE system and we have no choice but to pay the right amount of tax at the right time.

We are the people that pay for schools and hospitals and you are the sort of person that moans when the services that are provided by the UK Government are sub-standard because people like you avoid paying you fair share of tax.

I could help you, but I won't. I am disgusted. I pay higher rate tax and I don't look to avoid one penny of it by under handed schemes thought of after the event.

You should have thought about your tax responsibilities and planned for them as any intelligent business person does.