It’s all very well to watch what is going on now in Saudi and talk about sand niggers, it’s not so much, it’s about a state grabbing money however it can.
One of the lessons most lost to history is the extent to which the state will go to in order to grab money, and, it’s coming back….
This is greg’s story, in his own words, unedited.
I own(ed) my own house (outright valued £80,000) and I did a ltte bit of work “on the side” for a couple of years, nothing ridiculous. I got made redundant (58) and I couldnt get another job. No, I didnt sign on (too proud) but I kept looking for work while working “on the side”.. I claimed nothing. Pretty soon another 3 years had gone by and I was 61 and still jobless and still working “on the side”. Oh I had put money away for tax and NI but had no idea what to do or how to pay it. I never even realised that I was supposed to tell HMRC. I’d never evr heard from them since I was 17… So here I was, I was working for myself (I was totally clueless)… I then figured things out after stumbling across tax sites on the web and I decided to go the route of “self disclosure”. Got myself a tax specialist and I was TOTALLY open with them and with HMRC. I gave them all paper work bank statements etc, and I held nothing back. I receieved 70% penalty (ouch), and every “fine” in the book. Paid the £65,000 (the amount of lost tax by one payment from my bank)… but they wanted another £45,500 in penalties. So I lost all my life savngs (and wifes savings), lost the house and was declared bankrupt. They said I should be grateful that I was not going to jail… Oh, I am. Would I self disclose again? Is there anything in it for someone to self disclose? The reality is there is no amnesty, there is nothing. Its not exactly the return of the prodigal son and hey, nice, thank you for saving up all that tax…. Bit late but thank you – NO! that’s not how it works !
So, in case you missed the highlights, by the time he was 56 Greg owned his own modest house outright, and at that point he started doing “odd jobs” here and there for others, at 58 he got made redundant from his long term job, did he sign on the dole? did he fuck, he just did a few more odd jobs, after all, he already owned his house so his outgoings weren’t too bad… three years later he is still doing the same thing, doing odd jobs, not claiming the dole.
Then, someone told him he should tell the state about it.
So he did, and he did it properly, hired an accountant and everything.
Next thing he knew he owed the state £110,500, which wiped him and his wife out and made them homeless, but, he was told, he was lucky he didn’t end up in jail….
But wait, it gets better, very recently the state has been granted FULL access to all sorts of shit, not just your bank accounts which they had anyway, but payal, ebay, amazon, etsy, gumtree, fuckbook, you name it.
Now you do not have to shop yourself, your online footprints will do it for you, all for free.
For now the threshold per annum is about one new iphone x, god help you if there are four in your family and you sell on your old phones for 250 quid each, you just turned into a “business” (even if you are already in full time employment), according to the state, and since you did not tell them, a deliberately fraudulent tax dodging business, here come the extra penalties and fines.
And it is going to get worse, a lot worse.
Lots of people ask me why, with my own small one man business, I went to all the trouble of making it a proper company (In law a company is an individual entity, a bit like a person) and of course all the expense, hell, even my accountant and tax dude says I should have stuck at being a sole trader.
I just smile at them and say yeah well.
The fact is you either hide stuff behind a separate legal entity like a company, or it is all in your own name, and the only occupation that is safe in your own name is being a welfare lout, everything else is fair game.
People who know me in real life know that I am not a deceitful person, I am not a rogue or a con man or a fly by night type, on the other hand, I am a private person, if I sell an old phone for 200 quid that is my business and no other fuckers, except for the guy I sold it to, it is certainly no business of the state, well, that is my personal opinion, a personal opinion that is now at odds with the state law…
So I moved everything across to a legit company, which being legit costs a fair bit each year, but on the other hand it is a separate legal entity to me.
Many of the laws that apply to private individuals like me do not apply to corporate entities like my company, and when I say “my” company even that is a bit misleading, it has rules too, for example I can’t simply draw 500 bucks for hookers, I must either pay myself wages or loan myself money, sure, I can make that choice, nobody can gainsay that choice, I still get the 500 bucks for hookers, but I have to do it that way and record it in the books as one or the other.
But it cuts the other way too, if the state decides that I have to explain the 500 bucks that landed in my private bank account, and why I spent it on hookers, whatever the company does or did is an unrelated issue, the state can wait for the year end accounts to be filed by the accountant, and good luck arguing with them.
Greg’s company would not have been liable for Greg’s debts to the state, and his debts to the state and bankruptcy may have disqualified him from being a director of that company, but company directors can be changed, the company sails on.
There is a guy down the road from me who owns three companies, one of them owns a business, that he is employed at, one of them owns a house, that he rents, with wages paid by the first company, and the last one owns a classic car and motorcycle collection, which he is employed to maintain and drive.. but wait, it gets better, all three companies are owned by a shell corporation that sits in another country entirely thousands of miles away, he himself doesn’t have two pennies to scratch his ass with.
The guy in question was the one who told me a few years ago to fuck all that shit and get myself a proper company, and when anyone asks why you are bothering just say yeah well…
See, off the top of my head I can’t think of a single country that has not indulged in some sort of mass state wealth collection at least once within the last 100 years, and I don’t mean the usual punitive taxes and inflation devaluation and shit, I mean stories like Greg’s, but told thousands of times in any one region… either all the precious metals were taken, or the property was taken, or the land was taken, or the bank accounts were taken, and by the way, you can count yourself lucky you did not end up in jail.
I can remember it happening to my dad in 1971, that was all the cash in the bank, I can’t remember but he can remember it happening to his dad in the 30’s, all the precious metals went first, then the iron and steel, and then some of the property.. he can remember his dad talking about it happening to HIS dad in the 1890’s, so without even going outside my own family on the paternal side, I’m the only one who hasn’t been fucked by the state they happened to be in, and that isn’t an omen I care to ignore.
Remember, the law in pretty much every country says a proper company must file legal accounts every year, the law says sweet fuck all about that company either making a profit or turning over any money year to year, and the fact is you can do all this for less than it costs to run a smoking habit…
The proverbial “boating accident” will land your ass in jail, or leave you literally on the street with literally nothing but the shirt on your back.
The proper company doesn’t have to do any such thing as have boating accidents. Companies are taxed on profits, not assets or turnover (just ask google or amazon, amazon uk paid just over 4,000 pounds sterling tax last year in the uk) .
10,000 bucks borrowed from my company is a genuine debt for me as a private individual, if I want to prove I personally have no assets.
Don’t get too fly, if your company buys a 1000 buck banger and rents it to you for 500 bucks a month off your wages for sure it will lower your personal tax threshold, but it will show as a profit on an asset or the company, and it will show the state you are being fly.
Much better to have to company pay you the legal minimum wage in the first place, it lowers your personal tax threshold and so what if the company employs minimum wage staff who are unproductive…
But the fact is that aside from the yeah well, the penniless guy with the three companies owned by the foreign shell company, did make me think about things, and nothing I have seen since leads me to any other conclusion other than we are in for another round of state sponsored theft by any other name.
Getting another passport and fucking off to some foreign climes is often neither practical or possible for many, but every single fucking one of you can get a proper company set up, even if you are one of the few personally disbarred from ever owning a company, your brother can do it for you.
While my dad, and my grandad, and my great grandad all had an ass raping from the state, none of the fuckers got wiped out, none of them had all of their eggs in one basket.
if you are *just* a private individual or worse still a private individual who is also a sole trader, take a good long hard look in the mirror, you are the textbook definition of having all your eggs in one basket.
Now look at the state, it’s looking increasingly like a mugger about to pounce on the low hanging fruit like you.
Now, I wasn’t even going to write this post, so it only existed in my head, and it has existed there for some time, and the post as it was ended there.
The reason it is actually being posted is something that happened the other day.
I know someone who has had a car vandalised, I know someone who has been ripped off, I know someone who was attacked by a drunk, in every case it was the same old story about when seconds count the po po are minutes or hours away, and when they eventually turn up, they aren’t interested.
I know someone who owns a company, someone kicked off in their reception area, so he called the po po and said “Acme Ltd here, we have someone being violent and abusive in our reception area, please send someone immediately”
The first po po car arrived three minutes later, two more arrived over the next ten minutes.
The perp was taken away in cuffs.
Yeah, not just the tax departments of the state that treat companies better than individuals then….
Thanks for this. Sole trader/self employed and thought by not going LTD and VAT registered I’d be minimising my involvement and exposure to the state. I’m going to have to seriously reconsider this.
Comment by justwanttocommentblog — November 17, 2017 @ 11:38 am
If you are in the Uk the threshold for “sideline hobbies” inc odd jobs, car boots, ebay etc is £1,000 per year, 1 penny more and you must disclose by law and be taxed by law.
HMRC estimates that there is in excess of 85 billion quid to be grabbed in taxes thusly, you do not even need greek banks bailing you in a day before the tax department assesses you as owing them your last 5 years wages.
Consider this too…
The direct equivalent to a company turnover is your private income or wages, the direct equivalent to a company profit is your private surplus income or wages after you have paid all bills and taxes.
Company turnover is not taxed. Private turnover is taxed, punitively.
Company profit is taxed, but there are plenty of things that can be legally set against it, even just reinvestment.
A company is a legal entity, a private individual is a legal individual, the two are separate, and also not exactly the same thing, for example a company can buy pure alcohol and red diesel readily enough, a private individual can be imprisoned readily enough.
The past 50 years of western civ is not necessarily a good guide to the next 10 years.
Do your research.
Do not ask a barber if you need a haircut.
Learn the definition of hedging your bets, do you have a policy in place for each of the likely / possible outcomes?
Comment by wimminz — November 17, 2017 @ 2:28 pm