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Seeking advice: Taxation Confusion

Seeking advice: Taxation Confusion

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Hi Folks,
 
I need your take on my income from my internet based share revenue.
 
Here are  my details;
 
I am from British national but was born in Pakistan, So i am dual national. i am married and my wife is on dependent visa and not British national.She is Pakistani national.
 
I am here in this country from last 10 years.I am working for a multinational company and on the Salary of 38K.
I am doing this internet based business as part time because i have to just watch 10ads in 24 hours and the company share the revenue with the members.I have invested $10,000 to buy the ad packs and now after 6 months i have started to withdraw from my revenue share money from the Trafficexchnage account into my Paypal account.
 
So it will be like $6000/month.I have personal Paypal account and i have verified it with Barclay bank.So i have withdraw some money into my bank from Paypal already.
 
So:
 
 
 
Should I pay income tax on that earning which i am getting into Paypal ? 
if yes then what would you advise me because i am also doing full time job too and it will be higher rate tax .
 
 
Please advise me the options for structuring the business in a tax efficient manner.
 
Should i register a Ltd company in UK or offshore company in 0% tax jurisdiction.
 
Thanks in advance
Faran

Replies (13)

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Portia profile image
By Portia Nina Levin
11th Jan 2016 14:51

Have you thought about just not telling anybody about it? The other alternative is to just pay the frigging tax. The offshore company is a bad idea.

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By stephenkendrew
11th Jan 2016 14:54

Shall I go first?

"... what would you advise me?"

- to get an accountant!

Thanks (2)
RLI
By lionofludesch
11th Jan 2016 15:07

Second

I'll go second.

stephenkendrew wrote:

"... what would you advise me?"

- to get an accountant!

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By Melody
11th Jan 2016 16:49

Is it a scam? (And yes, get an accountant!)

1. If you are earning income you need to pay tax on it as your total income is already over the basic rate threshold. 

2. You need an accountant,  who will be able to advise which route is best for you (self-assessment,  limited company etc)  and help you not to pay tax on losses - something we cannot do here as an accountant will be able to look at the full details of your finances. And if you try setting up an offshore company, particularly without the help of an accountant, you could easily fall foul of strict tax anti avoidance rules. 

3. This business actually sounds like a scam. Most schemes which offer rewards that are too good to be true but ask you for an investment up front are scams. It could well be a Ponzi scheme. The originator makes their money out of the payments from "investors" like you. The investors may get some cash back to keep them interested, but never get as much back as they paid initially. I suspect the only actual revenue comes from new members investing. If they ask you to invest more cash to get greater returns - don't!

4. The scheme could even be illegal, so be very careful, particularly if you are offered rewards to get more people involved. Don't let yourself get suckered into doing anything illegal yourself.

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By aland
11th Jan 2016 22:00

Scam/Ponzi agreed

Do I understand that you are expecting to get $6,000 per month for doing virtually nothing (except a one-off $10,000 investment)?

If so this is clearly "too good to be true", ie a scam, and as Melody says quite likely a Ponzi scheme. If you do ever get $10,000 back, get out immediately!

Also be very wary of what account (bank, Paypal) details you give out. You may find money suddenly disappearing.

 

PS - no tax due on just getting your money back!

 

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By Matrix
11th Jan 2016 22:49

Non-dom

You could pay £30k a year to HMRC, keep the income offshore and then you will only be taxed on the remittance basis and not the arising basis.

This may be useful when you are making millions from the scheme ;)

 

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Out of my mind
By runningmate
11th Jan 2016 23:07

Get out as fast as you can

Get your money back & get out as fast as you can before the whole scheme collapses!

RM

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By Wanderer
12th Jan 2016 06:36

So

you put $10,000 in & are going to get $6,000 per month back.

Come back to us when you have received AND COMPLETELY CLEARED your first three $6,000 receipts with no chance of clawback.

In the meantime don't, whatever you do, invest a penny more of your no doubt hard earned 38k salary in this or similar schemes.

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Hitch photo
By Kevin Kavanagh
12th Jan 2016 10:17

Wow, great find craig....perhaps the OP would like to respond?

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By skhan
24th Nov 2016 19:23

Be careful. These ad companies are fraud and work like Ponzi like Trafficmoonsoon. Get all your money. The money earned is taxable.

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By skhan
24th Nov 2016 19:24

Be careful. These ad companies are fraud and work like Ponzi like Traffic monsoon. Get all your money. The money earned is taxable.

Thanks (0)
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