Legal Ways to Avoid Tax 🤫

Legal ways to avoid tax. I'm going to share with you 3 main ways to avoid tax legally without these global holding companies or trusts or going non-domicile. I'm not giving up on the UK yet, but I am close. And because I've been talking a lot about how outrageous taxes are, A lot of people have been asking me if I'm leaving the UK. Now, if Labour put taxes up anymore, I might have to consider it. Some people have been saying to me, Rob, can you even run a business or make money in the UK anymore? Thankfully, the answer is yes. You just have to get more smart with how you manage your tax. Because people think their biggest expense is mortgage, kids. I would say that even a divorce is cheaper than your tax bill because at least a divorce is probably only going to be half. And VAT is 20%, corporation tax is 25%, income tax is 40% plus depending on your bracket. National Insurance is going up to 15%. You've got business rates. You've got pension contributions. Then you've got tax on everything that you buy if you've got any money left. And it's just outrageous. And do you know in America, the average person is 40% more productive? And I believe that's because the higher rate of tax in America kicks in at like $600,000, $700,000, whereas in the UK, it kicks in at £50,000. What's that? $62,000. So they've got it completely wrong in the UK. It is an absolute mess. It's an absolute killer of productivity. And I think you know this. But you can still make really good money in the UK. You just have to make sure that you manage your tax affairs really well because you think it's making money that's the important thing. But if you're giving most of it away in tax, You need to figure out how to get your tax bill down. Now, the main way that you can get your tax bill down, completely legal, the government actually want you to do this, even Labour want you to do this. The main way is to be a business owner, sole trader, LLP, limited company, start a business, start a side hustle. Because when you're employed, you pay tax first and you get what's left. And then when you're a business owner or self-employed, you pay yourself first and you pay what's left in tax. Now, this has to be the way and it, it can't change. Otherwise, no one would take the risk of starting a business. So there has to be tax breaks, incentives, and protection mechanisms for people to start a business. Otherwise, no one ever would. So as much as I've been vocal about increasing in taxes and the closing of some of the tax breaks, it's still good. There's still good tax relief and it's still worth it. And I'm going to take you through it. So a lot of people say, oh, well, you know, I can't leave my job or I've got all these bills or overheads or mortgages or loans. Well, you, you just start a side hustle. You start an e-commerce business. You start an information business. You start doing content and, um, open a business to get paid for your content creation, for monetizing social media. You start a company. It can be a small company. You can do it for probably $50. And as soon as you have a company, here's what works. You take all the money in from your sales. and then you can offset and run expenses through and chip that corp tax down and reduce the amount that you draw as income to reduce the income tax down. By the way, you can use AI or go and even search across through the HMRC website and find legitimate ways to reduce your tax that the government want you to do, but they don't advertise because if they advertised it to us all, we'd all do it more and they'd get less tax. So it's a weird one where they need some of us to do it, but not all of us to do it, and they don't really want to make it easy for us to do. So the next thing you can do once you've started your company, it's really quick and easy, and if you don't know how to do this, bear with me. The next thing you need to do is you need to pay yourself first and pay tax last and look at all of your lifestyle expenses and start figuring out what you can run through your business. So I don't do holidays, I do work trips. My cars are owned in my limited liability partnership, and so they're bought before tax, not after tax, which means my cars cost me half. That's capital and ongoing running costs. Um, I have a home office and that's able to run through my LLP. Now, by the way, the specifics and the structures of this, you need to speak to a good accountant. You need to get it right because it is individual. It's really complicated, and I think they do that on purpose to make it hard. So then you just go, oh, fuck it, I'll just pay the tax. Do not do that. It's worth learning. These complexities that are hard for everyone are hard for everyone, which means when you figure it out, that gives you a strategic advantage. So my travel, my accommodation, I make sure whenever I go to London, I do business meetings. Most of the time when I'm driving, I'm— or I'm traveling, I'm driven by my driver. That's all run through as a business expense. Your phone, your laptop, a lot of your hardware all becomes a business expense. And pretty much everything except, you know, your children, um, and, you know, the stuff that's just for you, like maybe some of your clothing and food— most other things can be converted into a business expense if you run your business properly and if you know the rules of what you can offset. So the third thing, as an example, that's big for me is the cars. So I used to only have a limited company years ago. Then I got some good advice from a really good accountant. We set up, set up an LLP structure, which runs very differently to a limited company. And the two main benefits are running up the home office and the, the separate internet and the separate bills and everything through. But then also we can have one car per partner, and because of our type of business, we're able to run that as a pretty much a full business expense. So it could be a full business or part business expense. So my Lamborghini Aventador was bought by the company, £255,000. The maintenance, the ongoing servicing, the running costs all run through the business. That car is now completely owned fully outright, as are some of the other cars we have. And that was before tax, not after tax. And a £255,000 Lamborghini paid after tax would have been £500,000 or more because I'd have had to earn the £500,000, pay the tax, and then have the money left for the car. So these are actually hidden in plain sight strategies and tactics that anyone can do to get their tax bill down significantly, save tens of thousands or hundreds of thousands in tax. But because the tax code is so complicated, and, you know, I think that that's almost intentional, um, people in the end just go, oh, and they just don't do anything, or they're scared of HMRC. They think that they're going to come after them. But it's just about having a good accountant, and then if you ever have any investigations, just getting good tax investigation insurance, a good, you know, a solid lawyer who knows what they're doing, and just defending yourself. A billionaire friend of mine, um, at any one point in the UK was having hundreds of tax investigations against him. He didn't lose any of them because they just want the money. But then that's really when you get to the billionaire level, and that's, that's not an issue you'll have. So it probably pays you the most amount of money to learn how to get your tax bills down because that's your biggest expense, to learn what you can offset, what you can claim, what you can run through, you know, what is offsettable, where the tax breaks are. Now there's quite a lot of more advanced ones like EIS, SEIS, BADR, there's capital gains tax breaks, there's capital allowances, there's loads, but they become a lot more advanced. So you're going to love this, by the way. I've never done this before, but inside rob.team, free with the membership, I'm actually doing a 3-part tax saving masterclass. And I've got one of my top 2 accountants that I use and have saved myself and my community tens of millions in tax to come in and deliver a 3-part masterclass for you. How's that? Now usually this would either be a fully paid for online masterclass, £700 or a live event for £2,000 or £3,000, or at the very least it would be in Rob.team Gold, which is, you know, much higher price subscription. But I thought, you know, it's Progressive's 18th birthday, tax is getting worse and worse, need to help people. I figure if you save some tax, then we might do more work together in the future. So I'm actually putting this 3-part, 7 to 8 hour tax saving masterclass inside Rob.team. Rob.team is my digital financial freedom platform to help you start and scale a business. Make, manage, and multiply money and build multiple streams of recurring income. And get this, for 20 pence a day, which is half the price of Netflix, which is less than I spent on coffee this morning, you can go and join right now. And it's literally starting next week is module 2 of the 3-part tax saving masterclass. Module 1's already recorded and in there for you to go and consume. How does that sound? So if you want to join right now and not have to pay hundreds or thousands of pounds for the course in the future, just go to rob.team. The link is r-o-b dot t-e-a-m, rob.team. Go join now because the courses in the next 2 weeks are live, which means at the end you'll be able to ask all your personal questions. So I recommend you come in, you get your 20 pence a day's worth of value, and you get a load of questions prepped and you ask them at the end of the live masterclass. Once they're done, they'll be recorded and they'll be put in rob.team, but then you won't be able to ask your personal questions. So this is right here, right now, and relevant. And the reason I'm doing this— I've managed to persuade my accountant to not make this a course that's thousands of pounds, but to put it in rob.team— is because taxes are going up and up and up, and Labour are coming for you. They're coming for me. They're coming for us all. They're coming for entrepreneurs. And tax is getting worse and worse and more and more penal. And the economy is not growing and think we are not productive in the UK. And I'm angry about it. But I know you can still do really well as an entrepreneur. I know you can make good money. I know it's still possible because I'm still doing it myself. I'm still making good money. But it's more important than ever to get your tax bill down as much as it is to get your income streams up. So grab me on this celebrating my company's 18th birthday. And helping you save, save yourself from the government. Join rob.team. Just type in r-o-b dot t-e-a-m, rob.team. Once you've joined, um, in the next couple of days you'll get an email and a link with the full agenda. And there's essentially 7 modules over about 7 or 8 hours, and we start with the basics and you get into the advanced stuff later on. You know, like I said, BADR, SEIS, EIS, um, capital allowances, R&D tax credits. All of this stuff will be covered towards the end of the program. But you know, the basics and the fundamentals that most people don't know and aren't doing will be covered at the start. The first module is already in, so you can literally go and grab it right now. So the link is rob.team. I've spent more on coffee this morning than it costs you for a month membership. And what you could even do if you're not sure is go join, watch the tax masterclasses, and then decide if you want to stay as a member. There's hundreds of hours of courses, resources, and masterclasses to make, manage, and multiply money. So let me know what you think of tax right now in the UK. Are you sticking it out here or are you going to leave? Um, 20% VAT, 25% corporation tax, 40% plus income tax, 15% national insurance, business rates, the tax— the taxes go on and on and on and on and on, and there's more. But you can offset a lot of them if you manage your tax affairs well. So starting a company, learning what you can offset, changing your lifestyle, becoming more business focused, and therefore many of your expenses become business expenses. Things like cars can be run through, do work trips, not holidays. And all of a sudden you'll save tens of thousands in tax. It's basically money for nothing because what you save in tax, you get 100% off. What you earn, you might only get net 30% off or 20% off, so it's worth it. Thanks for tuning in. I hope you found this useful. Um, and remember, if you don't risk anything, you risk everything. I'll see you in rob.team. I've got some big masterclasses coming soon to rob.team, including this tax saving special, which would usually be a paid-for masterclass. Cheers.