3 Tax Loopholes Closing, be Quick ⛔️

Warning, these 3 tax loopholes which can save you a vast amount in tax look like they're closing. So I'm going to share with you in this video how you can offset and reduce your tax bill. Like I've said in the title, make sure you're quick onto this because unfortunately, as I'm sure you'll agree, the government seem to be closing all of our tax benefits and breaks. They seem to be taxing us more and more and more. Tax seems to be getting more and more unfair. Inflation and the cost of living seems to be getting higher and higher. We seem to be spending more of our time working for the government, uh, and what, what used to be— so I would say maybe 15 years ago, because I've been an entrepreneur for 17 years And about 15 years ago, how it used to work is the government would want to incentivize you to start a company, you know, so that you can keep unemployment down and hire people so that you could create really good economy and revenue for our government. And now it seems to completely have reversed where they seem to want to penalize you, cancel you, tax the hell out of you. And not really give you any reward for being an entrepreneur. And it— I don't think they understand how to run an economy. I mean, let me, let me know what you think in the comments, but surely the worst way to grow an economy is to penalize all the entrepreneurs who grow the economy. Surely the best way to grow the economy is to encourage and incentivize entrepreneurs to start a business, to take a risk, to hire people, to generate taxes. So if you just tax us loads, then we can't earn, we won't draw, and the money circulation will flow. Whereas if you tax us fairly and give us some incentives and rewards and breaks, we're going to go out there, we're going to hire people, we're going to take risks, we're going to draw our money because we feel like the tax that we're paying is fair, and the economy is going to grow. I mean, I feel like this is just common sense. I feel like this is Economics 101. I feel like no one in the government actually understands economics and how it actually works. Anyway, let me know what you think in the comments. So I'm going to share with you now a few tax loopholes, which by the way, these are legal. I would never share anything illegal. Disclaimer, but really you should do this as common sense. Make sure you run this by a good accountant. I'll tell you how to do that in a minute. And you know, just make sure that maybe you've got tax investigation insurance. And that your accountant underwrites what I'm about to tell you. Also, um, you know, make sure that you know— again, should be common sense, but I'd just like to share these things— make sure you understand that every, um, nation has a different set of tax rules, and it's your responsibility to find that out. Now look, uh, I have just sort of criticized the government a bit there. Um, however, what I will say is there are some good tax breaks. Here's the paradox: there are some good tax breaks out there, but the government aren't advertising them to you. And it almost seems like they want you to have some tax breaks so you can start businesses and hire people and make money and put it back into the economy. So it seems like they want that, but it also seems like they don't want to tell you, they don't want to share it with you, they don't want you to find out how to do it. So it's a bit, bit of a paradox. I mean, a lot of these things that I'm telling you are actually things that you can discover for yourself on the government websites. So if you have a good trawl through the government websites and then you hire a good accountant and a good tax lawyer, um, you can find some good ways to reduce your tax. Now, some of them are not fair, like for example these billion-dollar companies paying 4% or 1% corp tax by setting up a company in Ireland. You know, that's not fair and that's not right. And, you know, I think we should all speak up about the things that are right and fair. So what is also not fair is the amount of tax they charge entrepreneurs. So with all that being said, here they are. Are you ready? So number 1 is R&D relief. So there's a tax relief called R&D tax relief, or research and development. So you're able to offset some of your expenses or the expenses of research and development. You know, maybe you're developing software or a system, or you're doing testing for robotics or drugs or something like that. And, you know, if you think of manufacturers like Mercedes, they would do testing, you know, crash testing, and there are reasonably good tax write-offs for research and development. Now of course the grey area is, well, what determines research and development? And in reality, you know, quite a lot of what you do could be research and development. So your action from this: find a decent accountant, go and find the research and development tax relief, and quiz your accountant on what can be offset and challenge your accountant. Actually say, hey, look, can I offset this and this and this and this? And if they say no, because they're almost like government enforcement officers, say, well, are you sure? Now, my rule for running a tax break is number one, will the accountant underwrite it? Number two, will the insurance underwrite it? You know, having tax investigation insurance. And number three, have I challenged my accountant to be creative, to really look at it properly? Rather than just be lazy and go, oh well, the government, they don't want that, you know, you'll get fined for that, without actually properly looking into it. Okay, so number 1 is research and development relief. Number 2 is running an LLP and running cars in an LLP. So some of you here are saying, what about if you're employed? Look, I hope you would agree that I like to say it very clearly and boldly and bluntly and how it is. I'm not going to sugarcoat anything. Here's the reality. If you are employed, there's nothing you can do. You are fucked. If you are employed, i.e., you work for someone else, the way the government have screwed you in is they take all of your earnings first. They take off all their tax, whatever they want, and then they give you what's left. This is the reality. So you need to wake up to this. So for some people in the comments who are saying, oh well, I'm employed, what can I do, it's not fair, this doesn't work for me— if it doesn't work for you, you need to change what you do. So probably a fundamental here to talk about, like, which overrides everything, is you need to be self-employed. And that could be self-employed, limited company, LLP, LLC, etc. But you need to be self-employed. Now, you can be employed and self-employed, and it's not actually that difficult to be self-employed. You know, if you have a little e-commerce business on the side, or if you make money on your social media content, or what you might do is start a side hustle and then once the income in the side hustle replaces or equals the income in the employed job, then you go self-employed. Now, Guy said here, so should all employed people give up their jobs? Now, a lot of people make this argument. The answer is no, Guy. Not every self-employed person should give up their jobs. You know, I know people in my space who are like, well, if you're an employee, you're a loser, and you've got to be an entrepreneur, and you need to fire your boss. This is actually not true. Some people, they have a better skill set or a certain mindset that makes them better as an employee. And don't forget that Steve Jobs— sorry, um, Tim Cook, who took over from Steve Jobs, he's an employee. You could make really good money as an employee. Terry Leahy, who basically ended up heading Tesco's. But the problem with being an employee is they take your tax first. and you get what's left. And so you've got no control, absolutely no control. However, if you become self-employed, either self-employed, LLP, limited company, LLC, you take your money first, you work your expenses down, you offset the allowable costs, and then you pay tax later. So you pay VAT in arrears every quarter, which means you can earn interest on that money. And you know, you pay your tax on— some tax is paid on account, but some tax is paid up to 9 months in arrears, you pay your corporation tax in arrears. So what you can do is offset your R&D budget, um, offset— for example, you know, you probably use those for work, for your phone calls. That's an offsettable business expense, your phone, the ring light here, your laptop. There's a lot of things you see, there's a lot of things you buy personally that you can buy through a company and use through the company. Because here's the thing, and this is a bit of a shocker, But if you buy things before tax, it costs you half than if you buy things after tax. So I have a basic rule: if I buy things after tax, it costs me double. If I buy things before tax, it costs me half. So the next offsettable thing that they may close— because they are closing a lot of loopholes. There were some really good tax reliefs, and then David Cameron came in and wiped them all out. Now it seems like the government are just desperate and just basically stealing the last amount of money that we've all got. But the next one is, um, having an LLP and running a car through an LLP. So when you buy a car personally, remember, you're paying double. When you buy a car through a company, you're paying half. But the problem is, if you buy a car in a limited company, you pay company car tax, which is hugely penal, and it makes it not worth it. You can have a car that costs you £400 or £500 a month on the payments, and it costs you £500 a month on the tax. So you don't want to do that. But, um, if you own an LLP and the car could, um, be something for marketing purposes, you can own one car per partner in an LLP. And I, um, have an LLP that owns a Lamborghini Aventador, um, it owns a Porsche 911, it owns, I think, an Audi RS Q8. I have, I think, 7 cars, and I think 4 or 5 of those are, um, are owned in the LLP. Now Heather has said, it's all right being smart, but deceitful is a no-no. Absolutely, Heather. Um, there's no point being deceitful. You could end up in a civil case or a lawsuit, or worse, you could end up in prison. It would be stupid of me to go and do lives on doing things that are deceitful. By the way, just for the avoidance of doubt, if tax was 20%, I would just pay it. I would not bother trying to get accountants and lawyers and, you know, finding the loopholes. If tax was 20%, I would just pay it. The government would get a lot more money out of me. I would be more incentivized to sell and to grow. Now, if the tax was 95%, I would leave this country and go to a country where it isn't. So, you know, you've got to make these decisions based on what you think is fair and right and what is the best use of your time. So for me, tax is very unfair. It's hugely penal. It's very difficult to run a business if you pay all these taxes. And it's— I regard it as my fiduciary duty to keep my company solvent, to work my tax bill down. My tax is my biggest expense. So would you be smart as a company owner to work down your overheads, keep your overheads low and lean? Would that be fair to say? Yes, you would. And if tax is your greatest expense, would it be smart and, um, you know, your fiduciary responsibility, your financial responsibility, to work that expense down as much as you can? I believe it is. Now, Claire has said tax is robbing the poor. I'm sorry, Claire, but I agree and I disagree. Well, I'm not sorry. I agree and I disagree. I think that how high taxes are is theft. I agree with you, Claire. But actually there's a progressive tax system in the UK. So the poor pay nothing, the broke or just over broke pay 20%, and the rich pay 45%, you know, when it comes to income tax. So actually in some ways the tax system is taking from the rich and giving to the poor. But the problem is it takes— well, actually no, because here's how it really works. Let's just, let's be accurate about this. And the super rich and the billionaires get away with it, and they don't pay anywhere near enough. The new rich, or the young rich, or the just rich, um, they get really penalized. And then the money goes from them, and it's supposed to then trickle down to the poor. But the problem is it goes into the government, and then it all just gets wasted and all just gets spent. Would you agree with that? Let me know if you'd agree with that. So consider your R&D, um, offsettables and speak to an accountant. And what can you um, offset as research and development, number one. Um, number two is, uh, work out if you could structure an LLP, limited liability partnership, and maybe you can buy one car per partner in the LLP because, you know, the car is an offsettable expense and it could be used, for example, for marketing. Remember, always get a good qualified accountant to underwrite this and always have tax investigation insurance. And if either of those aren't underwritten, don't do it because you're taking a major risk. Remember, the fundamental is to start your own company, whether it's self-employed, uh, or whether it is, um, you know, limited liability or limited company, etc. Um, now look, there are other tax breaks. Um, the government are clamping down on what you can put through as an expense. But if you don't have a company, you've got to buy that personally, so you're paying double. You've got to buy your phone personally, so you're paying double. You've got to buy your laptop personally, so you're paying double. You've got to buy your ring light personally, so you're paying double. Whereas if, you know, my laptop is mostly used for business, so I might claim it as a business expense. If there's mixed use, I will be honest about that, you know. So I have business trips, but if, for example, I'm taking my children with me, I just highlight that they are not a business expense and this is a business expense, because obviously you can have, you can have a sort of a merge of a work trip and, you know, you could maybe have your family with you. So My children and family I pay for personally, but me, you know, and my airfare and my accommodation that's linked to me doing public speeches and me doing business meetings, that gets put through the company. And remember, if it's put through the company, essentially if you can pay for something before tax, it costs you half, and if you pay something after tax, it costs you double. So I hope you found this content useful. Let me know if you've got any questions because I do from as much as I can, go in and engage in the comments. Now look, if you would like to get your tax bill down further, get your income streams up, learn how to set up a company, learn how to be an entrepreneur, learn how to make, manage, and multiply money, and if you found this kind of content useful, the next step is to join Rob.team. So in Rob.team, you get hundreds of hours of courses, resources, and masterclasses on making, managing, and multiplying money. It's no risk to you 'cause it costs less than 22 pence a day. You can cancel any time. There's no ongoing contract, and it can be a business expense. So to join, it's really easy. Just type in rob.team. Rob.team. Go and join right now. I can see the numbers moving down, which means people are joining. So go and join right now by typing in rob.team. Uh, 22 pence a day, cancel anytime, no ongoing contract, offsettable business expense, which makes it like 11 pence day. If you want to get your tax bill down, your income up, learn how to invest in assets, learn how to reduce your tax bill and what's offsettable, learn, um, you know, how to build multiple streams of recurring income, all of it is inside rob.team. Type in r-o-b dot t-e-a-m. Okay, I'll do a bit, a few questions as well, a quick one. Thanks for all the kind comments. Guy has said great info. Neil has said, wouldn't the country be better if the money was managed by business people completely? The economy is shrinking, stroke ruined, and the government think that the solution is to tax everyone more. The solution is to incentivise us to earn the government more, and we're only going to earn the government more if we can earn more. And if they tax us more, we earn less, and therefore the government end up getting less, whereas if They tax us less, we earn more, and the government end up getting more. And business people deploy capital much better than governments. Governments waste it, they spend it on public services, track and trace apps that cost billions. You know, they waste it. Look at the NHS. I mean, the NHS has something like a £250 billion input of money and it's completely broken. The police is completely broken. So yeah, I agree that actually entrepreneurs are better deployers of capital. So Heather said, what happens when everybody goes self-employed? Everyone won't. Not everyone's made for it. You know, some of you are asking questions or making statements here which almost make out like you can't do this. You can do this. I'm not sitting here saying everyone should be self-employed. I'm saying if you don't want to pay as much tax and if you want to leverage the tax loopholes, And if you want to make more money, and if you want to be in control of your money, and you want to pay less tax, and you want to pay it last, not first. If you are saying yes, yes, yes, yes to this, then you need to follow these steps. Many people are happy being a nurse in a $35,000 or $40,000 a year job, and I'm not sitting here knocking it. But instead of saying, oh, it doesn't work for me because, you need to think, okay, how can I make it work for me? This is what you need to think about. Anyway, let me know what you think in the comments. Also, I wonder if you wouldn't mind sharing this, because I think it's really important that we put information out there that challenges the governments, challenges the central banks, challenges the politicians. The more we all put information out there about that challenges them and holds them accountable, the better behaved they're going to be. But right now it's a free-for-all where the political system is screwed, where, you know, tax is way too high, where central banks have way too much control, and And remember, we put them in power, and now we've given them basically a dictatorship, and it needs to be back to democracy, I believe. Let me know what you think about that in the comments, and also share this if you agree. So thanks for tuning in, and look, if you want accountant recommendations and you want more information on, you know, what taxes, what tax breaks are there, then join rob.team. There's hundreds of hours of courses, resources, masterclasses, for start and scale-up entrepreneurs to make, manage, and multiply more money. Just type in rob.team. I'll see you there. And by the way, just to let you know, I'm not into scams, schemes, all this offshore trust stuff which is dubious or gets retrospectively, um, investigated. Personally, I'm not into any of that. I like to stay I like to offset everything I can and do everything I can, but I don't want to cross the line where it goes from avoidance to evasion. So I don't like schemes, offshore trusts, all of that. I think it's fraught with danger. Be careful out there. Thanks for tuning in, and remember, if you don't risk anything, you risk everything.