There are tens of thousands of super rich individuals in the UK, and even they are constantly looking for ways to save money on their taxes. This is usually done by using an accountant Kent to document expenses into legal categories that can be classed as deductible and moving around earnings in to different areas to prevent taxing. There are many strategies that rich people use to save money on their taxes, including both legal and sometimes even illegal.
- Shell Companies – Shell companies only really exist on paper and there are no products or services being sold. They are used by the rich to funnel money internationally through by buying and selling, and therefore avoiding taxes on the money.
- Retirement Accounts – All income levels have access to a retirement account and the rich tend to contribute the maximum amount to this account in order to minimise their taxes.
- Tax Havens – Many individuals and even companies with a lot of money tend to make the most of tax havens, which are offshore accounts in countries that have small or even no taxes such as the Cayman Islands and the Channel Islands. By registering your location in one of these countries and spending some time there, a rich person can evade taxes by moving their money to a tax haven.
- Incorporation – In many ways when it comes to tax, it is better to be a high earning company rather than an individual, so the super rich will incorporate themselves to save on taxes.