The Schmidt
Tax Report

Tax Advice & Planning Newsletter

Justin Power, publisher, explains how his newsletter will save you tax

justin-small
Justin Power

If you are unhappy about the amount of tax you and/or your business has to pay and would like tax advice, then the Schmidt Tax Report will be of interest to you.

Its primary objective is to explain how you can, without behaving in an unethical way or taking any risks, legally save a substantial amount of tax.

So, if you want to know how to extract profits tax-free from your business, or avoid capital gains tax, or invest in a tax-efficient manner, or anything else about reducing your tax liability and dealing with HMRC, you’ll find the answers in the Schmidt Tax Report.

Moreover, if you have a particular problem to solve, we also offer completely free tax advice – an unrestricted ‘ask-the-experts’ service that enables you to seek one-to-one advice from leading tax consultants as often as you require.

 

Our New Property Pages

If you are a residential, commercial, agricultural or industrial landlord – or are thinking of investing in any sort of property in the UK or overseas – then  our new monthly supplement on property and taxation will prove invaluable. The property supplement offers:

  • Property tax news
  • Details of existing and proposed legislation affecting the taxation of your portfolio
  • Latest HMRC developments
  • Property tax planning opportunities
  • Advice on property investment structures
  • Tax efficient methods of profit extraction
  • Hot tax saving tips
  • Feature articles on a variety of property/tax related subjects

We are the only UK publication offering small to medium sized property investors straightforward, plain-English information and advice on how to best mitigate what may be their largest cost. Property is an ideal way to generate capital gain and/or income and can be used for other purposes such as inheritance tax deferral but returns can be dramatically reduced by taxation. Our supplement will ensure that your property investment objectives are not hampered by unnecessary taxation.

What follows is a summary of the benefits offered by the Schmidt Tax Report. However, before I say another word I want to reassure you regarding the cost. We are so confident that you will find the newsletter of value that we are happy to offer you:

  • A trial issue so that you can judge the newsletter for yourself.
  • A free copy of the editor’s recent book The Entrepreneur’s Tax Guide  worth £20 (publisher: Head of Zeus), to keep whether you decide to subscribe or not.
  • 50% off your first year. Pay just £99 – which works out at less than £2 a week.
  • Immediate, free tax advice from our ‘ask the experts’ service for 30 days (even if you decide not to become a regular subscriber).

The real beauty of the Schmidt Tax Report is that it allows you to receive first-class tax advice from some of the UK’s leading experts at a fraction of the cost of a one-to-one consultation, giving you a tax planning service so helpful, for instance,  when planning your tax returns. After all, the £99 first year subscription would barely pay for ten minutes of an experienced tax consultant’s time.

A recent survey of new subscribers revealed that the average tax saving achieved has been £36,418. You’ll find details of the survey below.

The Schmidt Tax Report will soon be celebrating 25 years in continuous publication. It is the only comprehensive, practical, trustworthy, plain-English newsletter on the subject of tax saving in the UK. Indeed, it is read by many accountants, who find it an excellent source of information and ideas. If you are interested in reducing your own tax bill, help with tax returns or if you have some other tax-related issue why not send for a trial issue? You’ll be under no obligation and it could save you a sizeable amount of tax!

Yours sincerely
Justin Power
Publisher

Read before you buy. Request your trial issue.

Snapshot of The Schmidt Tax Report

Here’s a quick overview of what The Schmidt Tax Report offers:

  • Monthly newsletter focusing on ethical, legal tax saving
  • Free ask-the-experts service
  • Focuses on most expensive taxes: income, capital gains, corporate, inheritance and national insurance
  • Special emphasis on extracting profits tax-free from businesses
  • Regular features on low- and no-tax investment planning including property
  • Tax planning, tax return help, offshore tax planning, dealing with HMRC and other related topics all regularly covered

What’s more:

  • Written in plain English by some of the UK’s leading tax experts
  • Immediate tax savings guaranteed
  • You can ‘read before you buy’ thanks to our Trial Offer

Interview: The tax expert who guarantees to save you money

Jonathan Self, former Times columnist, interviews Alan Pink, editor of the Schmidt Tax Report

“I saved this shop owner £142,876. I saved this company director £68,561. I saved this property investor roughly £7,000 a year for three years or, more precisely,” Alan Pink, editor of The Schmidt Tax Report, paused for a fraction of second, “£21,396 in total. I saved this recruitment consultancy £211,000. I saved…”

At the beginning of our interview I asked Alan, one of the UK’s most eminent and respected tax advice experts, to give me some examples of tax savings he had made for his clients and he led me from his office and into a strong room. There, he unlocked a fireproof filing cabinet, pulled open the top drawer and began a running commentary as he flicked through the files.

“I saved this manufacturer £1.8 million. I saved this dentist nearly £90,000. I saved…” When he saw that he had made his point he stopped and gave me a shy smile. “I love my work.”

Indeed, Alan loves his work so much that although every year he swears he is going to retire (one assumes that not only does he earn an excellent income but also he probably doesn’t pay much tax on it!) he simply can’t give it up. “It is strangely addictive. I have done all the research I need to do to write a book about the Victorian architect, Samuel Sanders Teulon, and, of course, my family keep saying I should take it easy, but tax planning is so fascinating.”

Alan’s acknowledged talent lies in identifying and exploiting legal tax loopholes. Every new Finance Act is a challenge he can’t resist, a chance to pit himself against the tax authorities and come out on top. Indeed, Perrie Croshaw, a former FT journalist, once said that: “Out of approximately 130,000 accountants in the UK maybe less than one hundred have Alan Pink’s talent for identifying new tax-saving opportunities.”

Given the demand for Alan’s tax advice and consultancy services I expressed surprise that he is willing to give up the time to write and edit The Schmidt Tax Report every month. “What I am interested in,” he replied, “is a platform for my ideas. A way of promoting to a wider audience all the many different, ethical and legal ways in which it is possible to save tax. Of course, I don’t write it all myself but ask other experts to contribute every month.” In Alan’s own introduction to the newsletter, below, he explains what he means by ‘ethical.’

Alan says that he writes not for the super-rich (although some of his personal clients have incomes running to many millions of pounds a year) and not for the multi-nationals, but for private individuals and for small to medium-sized private businesses. People and companies, in other words, that wouldn’t normally think of employing a specialist tax adviser of his experience. “I like the fact that for £2 a week someone can plug into a huge tax planning and reduction resource.”

If you request a trial issue of The Schmidt Tax Report you will receive a free copy of Alan Pink’s book: The Entrepreneur’s Tax Guide (publisher: Head of Zeus) worth £20, to keep whether you decide to subscribe or not.


Read before you buy. Request your trial issue.

Alan Pink, editor, on why you have every right to reduce your tax bill

As an accountant and tax advice and planning specialist I spend a good deal of my time listening to entrepreneurs’ problems. Despite what you would expect, very few of them ever complain about such issues as lack of opportunity or a shortage of capital. What they are worried about is complying with a highly complex tax system that changes from month to month and, of course, finding the money to pay larger and larger amounts of tax.

Politicians waffle on about how small to medium sized enterprises (SMEs) are the backbone of our economy, employing roughly half the workforce and accounting for roughly half of all business turnover, but when it comes to providing practical support they burden entrepreneurs with endless red tape and ever larger tax bills.

A good example of the politicians’ hypocrisy is business rates, which in 2013 leapt up by the highest amount in 20 years and are set to rake in an extra £6.5 billion in the life of the current parliament.

To add insult to injury entrepreneurs have to listen to accusations that they are not paying their fair share, as if more than a handful of businesses are able to use fancy offshore tax structures to save UK tax.

Thanks to our politicians there is a public perception that any business that tries to save tax is up to something dodgy. This is deeply unfair. Tax, in its many guises, is generally a business’s single highest overhead. Naturally, it is simply sound commercial sense to make sure – without breaking the law – that it is not costing more than it has to. Indeed, it is a well established principle of British tax law that, as Lord Clyde put it: ‘No man in the country is under the smallest obligation, moral or other, so to arrange his legal relations to his business or property as to enable the Inland Revenue (HMRC) to put the largest possible shovel in his stores.’

In fact, if you are an entrepreneur there are lots and lots of perfectly legitimate, no-risk methods by which you can dramatically reduce your tax bill. Methods that you will find described by my colleagues and me in the Schmidt Tax Report.

Read before you buy. Request your trial issue.

Your accountant and tax: why specialist tax advice is necessary

Surely, you may feel, your accountant should be giving you the advice found in the Schmidt Tax Report?

This is what a subscriber – Harry Carpenter from Battersea in London – had to say regarding a piece run in The Schmidt Tax Report about extracting profits tax-free from a private company:

“Whenever I asked my accountant if there was some way to reduce my personal tax burden he would talk about putting money into my pension fund or investing in ISAs. Which is why I was so pleased to read Mr Pink’s recent article. It was packed full of practical, relevant ideas. A back-of-the-envelope calculation suggests I will be able to boost my disposable, net income by about 15% as a result of his advice. In cash terms that is the difference between having £8,000 a month and £9,200 a month to spend.”

You will notice that Mr Carpenter was not entirely happy with his accountant’s tax advice. Understandably, a large percentage of accountants find it difficult to keep up to date with tax. Every year the Finance Act gets fatter and fatter. The latest one, for instance, runs to 634 pages, which is about four times longer than the same act was in the early 1980s. This is before one considers everything else that an accountant should be reading to stay abreast of the latest tax news including other legislation, Her Majesty’s Customs and Revenue (HMRC) press releases and notices, court cases, rulings, tribunal hearings, learned opinions, specialist books and – literally – thousands of articles.

Another thing. In the past the rules relating to such areas as non-residence, pensions, national insurance, self-employment, partnerships, gifts and so forth were relatively static. Nowadays, all the rules change all the time. It’s not just a matter of learning about tax, it’s a matter of re-learning it over and over again.

Think of it this way. Would you ask your GP to perform open-heart surgery on you? No. You would go to a specialist – someone with experience and a proven track record.


Read before you buy. Request your trial issue.

What our readers say

How much can you actually hope to save? We were curious to know and so between 2011 and 2013 we polled a sample of new subscribers, asking them: “How much tax have you saved as a direct result of something you learned from our newsletter?” This was the result:

Saved over £250,000 5
Saved £100,00 – £250,000 11
Saved £50,000 – £100,000 27
Saved £20,000 – £50,000 31
Saved £10,000 – £20,000 104
Saved £1,000 – £10,000 193
Saved under £1,000 51

On average Schmidt Tax Report readers saved £36,418. This is what a few of them told us:

“Inspired by the article we have put in place an income splitting plan that reduces my tax bill on £200,000 income from £75,000 to £33,000.” David Ross, Edinburgh.

“We have re-organised our property holdings as suggested effectively doing away with any tax on our profits. The saving is worth around £3,500 a year.” Steve Ellis, Kent.

“For the first few issues I thought I had wasted my money but then in the February newsletter two simple things that have saved me £1,800 a year and got me a rebate of £2,140. Thank you.” Joanna O’Sullivan, Hampshire.

“I am delighted to say that your plan will mean I pay capital gains tax at 18% instead of income tax at the highest rate. A saving of over £72,000. Hurrah!” Geoffrey Bush, Swansea.

“Thank heavens (and thank you) we have sidestepped the problems we were about to have with the new anti-IHT avoidance rules and will be able to leave our home, which even in the current climate is worth over £1.5 million, tax free to our children.” Mr & Mrs Philip Orr, Liverpool.

“I get full tax relief on the money I put into my retirement fund. When I retire I can take as much as I want as a lump sum. Best of all, I am not going to be forced by the government to take out an annuity when I stop working. Your pension solution suits me perfectly.” Colin Evans, Norwich

“My colleagues and I are in the process of re-organising our business along the lines you describe and we confidently expect to save in the region of £14,000 – £17,000 each a year for the foreseeable future.” Peter Hannart, Birmingham.

“I have sold my business for £850,000 and won’t pay any tax on the proceeds saving me roughly £140,000. I would never have managed this if it wasn’t for your advice.” Dr Yasmin Gupta, London

You’ll notice that the amount of tax saved by Schmidt Tax Report readers varies dramatically from the tax advice given. You’ll have your own ideas about what a worthwhile amount of tax to save is, but one thing is certain: the longer you delay putting an effective tax reduction strategy in place, the more it is going to cost you. For whichever political party is in power over the next few years until the economy is transformed and the national debt reduced, the overall level of taxation is likely to continue rising.


Read before you buy. Request your trial issue.

Everything you need to know about saving tax… in 15 minutes a month

One of the key benefits of The Schmidt Tax Report is that if you wanted to you could speed-read it in about 15 minutes a month. However, you may find yourself spending much longer studying it as it is a remarkably enjoyable read. Alan (our editor) and his colleagues manage to make even the driest subject fascinating. The newsletter proves that saving tax need not be tedious or time consuming.

As a subscriber – even a trial subscriber – you have full, unrestricted access to our ‘ask-the-experts’ service. Ask any question you want for a detailed, confidential reply, whether it’s for tax returns, tax planning or just general tax advice.

The newsletter’s vital statistics are:

  • News – a round up of relevant news stories
  • Editorial – a look at two or three current tax topics, plans and/or ideas
  • Feature articles – in-depth, action orientated tax saving articles
  • Alternative investment – low tax and no tax investment
  • Offshore column – news and tax planning including becoming non-resident
  • Top tips – quick tops that could save you substantial sums
  • Q&A – a selection of the month’s ‘ask the experts’ queries

Below is a selection of typical feature articles:

  • 23 ways to extract profits – tax-free – from limited companies. Boost your net income by 15% or more.
  • The Limited Liability Partnership and how it can save you huge amounts of tax.
  • Why pay tax on property profits? Tax efficient property investment strategies to put in place before the next upturn.
  • Instant loopholes. Simple ways to slash the cost of everything from stamp duty to national insurance.
  • Inheritance tax is still a voluntary tax if you use this clever, little known trick.
  • A-Z of legal VAT avoidance.
  • The company Rolex. How to make luxury items and hobbies totally tax-deductible.
  • Tax-free investment. 32 ways in which you can avoid tax on both your capital gains and investment income.
  • Protecting your assets from HMRC, divorce and political disturbance
  • Making sure overseas assets (such as property) are tax-free.
  • The 100% tax-free pension.
  • Going offshore. How to enjoy a better tax climate.
  • How to survive an HMRC investigation.


Read before you buy. Request your trial issue.

Read before you buy – our special trial offer

We know that if we can get a single issue into your hands the chances are you will become a long-term reader. Knowing this means that we can afford to offer you lots of incentives to encourage you to try the publication out. In summary:

  • A trial issue so that you can judge the newsletter for yourself.
  • A free copy of the editor’s recent book The Entrepreneur’s Tax Guide (publisher: Head of Zeus) worth £20, to keep whether you decide to subscribe or not.
  • 50% off your first year. Pay just £99 – which works out at less than £2 a week.
  • Immediate, free access to our ‘ask the experts’ service for 30 days (even if you decide not to become a regular subscriber).

Risk-free trial issue

The day we receive your risk-free Trial Application we will send you – first class – the current issue of The Schmidt Tax Report. This way you can prove to your own satisfaction that the newsletter is everything we promise. If not, keep the copy or pass it on to a friend or colleague.

Free copy of The Entrepreneur’s Tax Guide

We will also send you a free copy of the editor’s recent book The Entrepreneur’s Tax Guide (publisher: Head of Zeus) worth £20, to keep whether you decide to subscribe or not. The title of Alan’s book describes it perfectly and it has received excellent reviews everywhere from The Times to Taxation Monthly. This is what one reviewer said: “Tax expert Alan Pink offers a comprehensive set of strategies to reduce tax liabilities on businesses. He considers the full range of types of tax – taxes on profits (such as income tax, corporation tax and National Insurance contributions); capital taxes (such as capital gains tax and inheritance tax); and VAT. Throughout the book handy lists of action points are provided for practical tax planning. Current rates of tax and allowances are also listed. The rewards of tax planning are huge. This book will help hard-pressed businesses and investors play the tax game by the rules – and still win.”

50% off!

If you do decide to subscribe you’ll receive a 50% discount in your first year. Pay just £99 – which works out at less than £2 a week.

Free access to our ‘ask the experts’ service.

As a trial subscriber you will receive immediate, free access to our ‘ask the experts’ service (even if you decide not to become a regular subscriber).

Read before you buy. Request your trial issue…

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