How to Legally Avoid Tax 👀

How to legally avoid tax. Warning, um, what I'm sharing with you now, paradoxically, the government let you do, but the government don't want you to do and don't want you to know how to do. So make sure you watch this very carefully. Um, this kind of content is the kind of content that can get shut down and deleted and banned. So watch, listen, follow. Are you ready? I'm going to share with you 3 main ways that the ordinary person like you can legally avoid tax. I'm not talking about, you know, the billionaires and the massive corporations who set up these, um, sort of wrapper companies and trusts in Ireland and things like that. This is not what I'm going to talk about. I'm going to talk about how normal ordinary people like you can save and get around your tax bill legally without schemes and scams. Um, and, and like I said, weirdly, something that the government allow you to do but don't want you to do and don't want people like me publicizing how to do it. So give me a yes in the comments if you're up for it. And here we go. Okay, number 1 way to legally avoid tax, and you know, this is the most important one, it's the most necessary part, and that is that you, you need to be a business or company owner. If you are employed, you cannot avoid any tax, you know, unless you go to prison just for not paying it. That's called tax evasion, and we don't want any of that. So the first thing you need to do is have your own company. It could be self-employed, limited company, LLP, or in America it's called an LLC, essentially a limited liability partnership. Now you can have a job and also form and start a company. So actually starting a company is not difficult, anyone can do it. You know, let's say you're going to start selling some things on eBay on the side, or let's say you want to do some content on social media, you're going to form a company where you go from employed to business owner, employed to self-employed. Because in reality, your tax is defined in two ways. So the line there, it's you're employed or you're self-employed. Now when you're self-employed, there's self-employed Limited company, LLP, LLC— there's different wrappers within that. So anyone can actually start a company. Now, I'm going to come back to this point in a minute, and please do make sure you share this before it gets deleted and taken down. Um, so one of the things that I think is a real scam in the world, in the way that, you know, money is distributed and the government govern us is that your tax money— your money is taken before you get it. So you're supposed to be working to earn and live and, you know, pay your mortgage and look after your family and put your kids to school. You know, you're supposed to be, um, allowed to do this, but actually you work for the government. This is a shocker. And when you earn your money, here's what happens, and I'm sure you know this. You know, you get your, your, um, you get your payslip and you're like, it's almost like, this is what you could have won and this is what you won. This is what you earned, this is what we took, and this is what you've got left. So you are taxed at source. You are taxed before you earn. So when you're employed, the government literally takes your money and gives you the slim pickings that's left. As an employee. I think this is wrong, but this is the way they do it. But as a self-employed, you take the money first, you actually earn it, and then often delayed— like VAT is quarterly, um, and often your tax can be paid 6, 9, or 12 months in arrears— then you pay the tax over after you've earned. So I think it's a massive scam that they take all your money first. That's why I decided to take the risk and do the hard things and become a business owner and an entrepreneur 17 years ago, because I didn't want them taking my money before I got it. I wanted to take my money first and then pay over, you know, obviously there are laws, you know, I don't— I'm not against taxes, by the way, just I'm against unfair taxes. Okay, so the first thing you need to do to legally avoid tax is to form your own company, because here's what happens. When you're employed, you have no choice of how much you pay, you're just forced. But when you're self-employed, you take the money in, and then there are various things that you can offset, spend within the company to reduce the tax liability. Um, and, and, you know, anything that you need to um, spend, purchase to run the business, to effectively run the business, um, is an offsettable business expense. So you're charged your normal rates of tax— 25% corporation, scam, 45% income, scam, national insurance, scam, etc. But you know, your iPhone, your laptop, your ring light your headphones to do your calls on. All of this can be purchased within the company because it's a requirement to run the company, and so therefore you're reducing your tax bill and the amount that you pay to the government. And this is completely allowable. Now, I will just give you a little bit of a fair warning here. Um, never try anything, um, to avoid tax unless a good credible accountant has underwritten it. So by the way, and I'll just be honest with you, and this is why you should share this, this is why you should watch and listen, um, because this stuff could get taken down. But, um, I am trying to pay as minimum tax as possible. I am trying to legitimately run as much expense through— I'm not spending extra money that I wouldn't normally spend, but trying to run as much legitimate expense through my company as I can so then I can avoid tax. Now, by the way, if Rishi Sunak or Jeremy Hunt or the UK Chancellor or the governments and the prime ministers and the world leaders and the politicians, if you're watching, I'm going to give you a little tip, and this is for free. Every single business owner I speak to wants to leave the country or wants to do anything that they can to avoid tax because it is unfair and it is too much. Unfair and too much. But every single business owner I know says, well, if it was a flat rate, not a progressive rate, and if it was more fair, um, i.e., it was, say, 20% or even 25%, all of the business owners I know, they would probably not mess around trying to find ways to avoid tax. They'd just pay the tax because it was easier, um, and they would just carry on with their life. Um, but because tax is so penal and unfair Many business owners are trying a workaround. So that's a little note to the government. You can have that one for free, Rishi. Someone has said here, this isn't relevant to anyone who is employed. Well, look, David, we can all sit here and go, oh well, it doesn't work for me and it's not relevant and it's not fair, but how is your life going to change? Like I said, you could be employed, yes, and no, you cannot get your tax bill down if you're employed. That is a fact. So what are you going to do, just accept that? Or are you going to try a workaround? And even if you're employed, you can set up your own company and generate some part-time income and work that tax bill down. Okay, so, um, little word to Rishi there. Rishi, feel free to come on the show. I'll give you lots of tips and advice on how to run an economy because you don't know how, and how to stop all of the people who earn good money in this country leaving. And how to stop all of the good people who earn money in, in this country not drawing the money because they don't want to give you all the tax revenue. Anyway, okay, so we've covered number 1: you need a company, even if it's a small part-time self-employed company. Okay, number 2 then is if you run an LLP, limited liability partnership, you can run your home office and your cars, one car per partner, through the company. So in a limited company, the tax is disgraceful. So if you own a car within a company, you get what's called benefit-in-kind tax. You get company car tax on the company car, you get benefit-in-kind tax if you're going to use it personally, and you can be paying hundreds of pounds on a car that just makes it not, not worth owning. But in an LLP, limited liability partnership, You're able to own a car as a company asset. Now, by the way, this is huge. Remember I said earlier, what you want to do is make sure that you learn this information, you get a good accountant, and you get these strategies and tactics underwritten by an accountant. I have tax investigation insurance, a really fucking good accountant, and I get all of the tax saving strategies underwritten by the accountant for the purposes of the insurance. Number 1, to make sure I'm doing it legally, and number 2, to make sure that, you know, if the government do knock knock, we want money. Because here's the thing, when you save tax, the government will come knocking on the door for money because they don't want you to save tax. So I'm just giving you fair explanation and warning about this. Detail and context is important. Like I said, probably shouldn't be saying this, um, so make sure you, you share this and you implement this before they cancel me. But here's the ironic thing, um, the government don't want you to save tax, but they do want you to start a company, and they do offer you incentives to save tax, but they're not advertising how you can save tax. So it's all a bit weird, isn't it? Okay, so it— I'm just going to give you some examples here. I own a Lamborghini Aventador and knew that car was probably, let's say, £300,000. It was about that new. So if I want to buy that personally, I have to earn about £600,000, just under, and then I have to pay the tax on that, which is 45%, and then I, um, can buy the Lamborghini. So a £300,000 Lamborghini would cost me £600,000 if I had to pay the tax and then buy the car. And it's the same for the servicing and the maintenance and then there's the depreciation. So, you know, the Lamborghini is going to cost me 2 to 2.5 times more if I am buying it post-tax. However, if I can buy it pre-tax, it's costing me not the tax. So in a limited liability partnership, you are able to own a car as a company asset if that car is useful to the company, for example, for marketing purposes And so, um, I have 4 or 5 partners in an LLP company, which means we're allowed to own 1 car per partner. So my £300 grand Lamborghini only cost me £300 grand, not £600 grand. Um, but then the maintenance I can run through, so that's, you know, let's say it's £20 grand a year, so that's £20 grand a year off the tax bill. And then, you know, the fuel and the general running and usage and servicing, let's say that's another £10,000 a year, then that comes off the tax bill. So I've saved £300,000 in tax, and I've also then saved about £30,000 a year in expense, which is going to reduce your tax bill down. And I just work out to half, so if it's £30,000 expense, I'm working out that it's saving me about £15,000 a year. So that's already £315,000 saved. Then there's the depreciation. So let's say that car goes down £20,000 a year. I'm saving another £10,000 a year in tax on top of that. This is something that a lot of accountants don't know because they're sausage machine accountants. Do you know, a lot of accountants to me just seem like government tax enforcement officers. No, can't do that. No, can't do that. No, can't do that. No, that's illegal. 'No, you can't do that. No, you got a prison for that.' Need to find a better accountant then. Okay, give me a yes if you're finding this useful. Thanks for the stars there, Brent. Also, if you are finding this useful, please share it. We need to get this information out to as many people as possible because here's the thing, right? If we can all earn more and we can all pay less tax, the world is going to be better. The economy is going to be better. It's going to benefit us all. If, if, if all of us are paying a lot more money in tax we can't buy from each other and sell to each other and do things with each other. You know, a lot of people in Britain are like, oh, I want to hoard information. No, share this, because the more people know about this, the better it is for all of us. Okay, then the third thing I'm going to tell you— now, by the way, there's quite a few other ways to save tax, and if you say that this content is useful, give me the feedback in the comments, let me know if it's useful, I'll keep doing more of this. If you want to tag in any business owners and friends of yours by all means do. Okay, so the next thing which is quite big at the moment is R&D tax relief. So if you have software systems or anything that requires research and development, you know, testing, research, you know, like if you're a car manufacturer, they obviously do a lot of testing for crashes and, and things like that. Um, if you have that, there is an R&D tax allowance. Now, I won't go into the, the nitty-gritty details of it because obviously it can get very technical, but could there be any instances, um, in your self-employment where you are doing research and development? You know, I have to do a lot of informational research, um, you know, for keeping up my knowledge. I have a membership platform, and I have— that's essentially a piece of software, and, you know, so that requires a lot of testing and research. Now obviously what you can research and what you're developing, um, you know, if you're a robotics company, obviously you're developing and researching robotics, so that's probably a bit of an easier sell. Um, and you've, like I said, you've got to run this through an accountant who says, yeah, that is, that's research and development. And then, oh, actually no, that's not research and development. So you just make sure that you, um, like I said, it's all about the quality of the accountant and if they will underwrite, um, you know, if there was an HMRC investigation and, um, if it would be underwritten by the insurance. Um, I, I always get tax investigation insurance and I never do anything that would, um, negate, um, my insurance because that obviously tells you that, you know, it's a bit of a, um, it's not going to work. Um, yeah, so quite a few of you are saying more on taxation and tax saving tips. Absolutely. Okay, so I'm going to finish with this, and like I said, give me the feedback. If you love this, tell me. If you want me to do something else, tell me. I'm here for you. And share, um, because we all benefit when we pay less tax, because where's the tax money going? Can't get in the NHS, the police is corrupt and underfunded, the roads are fucked up. Where's all of our money going? You know, if I had a choice between giving my government all my tax money or an entrepreneur like Elon Musk, I'd give it to Elon Musk all day, every day. Okay, final thing I'm going to share with you, and I might do a part 2 on this, is, um, you have to challenge your accountant to find ways where you can reduce your tax. Because if you don't, they'll just do your VAT returns and do your tax returns and tell you you can't do this and tell you you can't do that. So I'm always going to my accountant going, hmm, can I put this clothing through? Hmm, can I put this trip through? Hmm, can I put this hardware or software through? Hmm, can I buy this as a company asset? And often the first thing they say is no. So for example, you can put branded clothing through, you know, if, if you're a plumber and you've got a uniform and it's got your branding on it, you know, that's a company expense. You need it. They are overalls. As they are necessary for your business. But you know, my accountant says you can't just buy your own clothes and put them through because that's called duality of purpose. And if there is a duality of purpose, i.e., you can use it personally as well as for the company, then you're not allowed to run it as an expense. So I say to my— I challenge my accountant and I say, okay, but this is my uniform. And he says, well, prove it. And I says, well, it's my brand. I've got a big social media following. I do content all the time. I am known for this. This is my brand. This is commercial. And he said, okay, but as you're saying, it's work uniform, has to be stored at work. So I said, no problem, I've got a wardrobe. I put it in the office at work and I hang it up at work. You know, just like if you have a company car, you have to leave it at work. And I do not wear these clothes personally. I only wear these clothes for my business. And I wear them for public speeches. And so we went through this discussion and debate, and in the end, the accountant underwrote it. Now look, some of these areas are gray, and HMRC may not agree, and so it's up to you to be able to prove them, which is why you have the insurance and you have the accountant, um, underwrite it. Because actually, good accountants can push back and say, well, no, we believe this is legal, we believe this is allowable. And actually, my accountant has never lost a case against the HMRC, um, because he knows the law. He knows their laws better than them. So look, let me know if you find this content useful. Like I said, please share it, because the more we all learn, the more we all learn, and the more we all learn, the better we all are. You're going to get a lot more clients and customers and people spending money with you if they can save half of the freaking tax. You know, half of their money that they're earning tax. And also, if you want to continue to get content like this from me, you know, maybe you want to start and scale a business, maybe you want to build recurring income streams, you want to reduce your tax and get your income up, um, create multiple streams of income, the next step is to join Rob.team. Rob.team is my digital financial freedom platform. It's really easy to join, costs only 22 pence a day, um, cancel anytime, no ongoing contract, and you can run it as a business expense. So to join, um, just go right now to rob.team. You literally just type in R-O-B dot T-E-A-M. Rob.team. Go join right now. Less than 22 pence a day, which if you save the tax on it, it's about 13 pence a day. Um, you can run it as a business expense, cancel anytime, no ongoing contract. Hundreds of hours of courses, resources, masterclasses, masterminds, Sunday sessions, Zooms, Q&A sessions with me on starting a business, scaling a business, making, managing, or multiplying money, investing in assets, getting your tax bill down and your income up. So thanks for tuning in. Remember, if you don't risk anything, you risk everything. Just like I might be taking a risk doing this content, but screw it, let's do it. And share this with your friends, your colleagues, tag in, you know, your friends, your entrepreneurs. Here's the thing, I don't know if you agree with this, but as entrepreneurs we should be bloody well supporting each other. I mean, as humanity we should. I agree, tax is legal robbery. Tax is theft. We should be supporting other entrepreneurs, helping each other. So tag in someone who you think could benefit from this. See you soon.