Are you going to stand by and let our new government take up to half (or more) of your income? How heavy does your tax burden have to become before you decide to take action?
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Tax rates are going up, but you can pay less...I am willing to give you a 100% money-back guarantee that this man can help you slash your tax bill. |
“Alan Pink is the David Copperfield of tax. He can make your tax bill just disappear.”Jonathan Self, The Times |
Dear Taxpayer
“I saved this shop owner £142,876. I saved this company director £68,561. I saved this property investor over £17,000 a year for three years or, more precisely,” Alan Pink paused for a fraction of second, “£51,396 in total. I saved this recruitment consultancy £311,000. I saved…”
The first time I met Alan, one of the UK’s most eminent and respected tax experts, I asked him 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 £2.4 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.”
Alan Pink can save you tax. I guarantee it. I’ll explain how in a moment.
First, let me tell you a bit about Alan himself. He is around 50, happily married, lives in a huge house in Kent, writes exceedingly well and is something of an expert on the Victorian architect Samuel Sanders Teulon (1812-1873). For as long as I have known him – and that’s 15 years – he has been announcing his imminent retirement as a tax consultant in order to write a book about Teulon, who is best known for his Gothic churches. However, every time a new Finance Act is published Alan decides to put Teulon on hold for another twelve months.
| "Thank you Mr Osborne - the good news is that suddenly business and personal tax planning is looking even more attractive." Alan Pink, Budget Day 22 June 2010 |
Why can’t he give up his tax practice?
Not for financial reasons, that is for certain. Alan charges according to the savings he achieves for his clients and, as you can imagine, something like the £2.4 million tax saving mentioned above comes with a pretty juicy fee. No, Alan’s talent lies in identifying and exploiting tax loopholes that no one else has seen. 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.
An FT journalist said that out of 130,000 accountants in the UK less than 100 have Alan’s talent for identifying new tax-saving opportunities.
I am a publisher and I was looking for Alan, or someone like him, in 1994 when I needed a replacement editor for my tax newsletter, the Schmidt Report. The thing about the Schmidt Report is that it is not aimed at one particular group but at anyone who wants to save tax, whether it is £500 or £500,000. You may think that there is a huge difference between the two
figures, but when it comes to tax planning there isn’t. The nature of the problem is the same, it is only the scale that varies.
Anyway, finding the perfect candidate wasn’t easy. Perrie Croshaw, a journalist friend of mine on the Financial Times, said that out of the 130,000 members of the Institute of Chartered Accountants there were probably less than a hundred with the sort of intuitive understanding for tax planning that I required. If anything I think she overestimated the supply.
Another problem was that the handful of tax experts I found capable of delivering what I wanted expected much more money than I could pay them. When I pointed out that it was an effective way to promote their services they just laughed at me. Hot-shot tax planners always – and I mean always - have considerably more work than they can handle.
In desperation I ran an advertisement in Tolley’s Taxation (a weekly magazine written by tax specialists for other tax specialists) and – thank heavens – Alan responded. “What I am interested in,” he wrote, “is a platform for my ideas. A way of promoting to a wider audience all the many different and entirely legal ways in which it is possible to save tax.”
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Why should the super-rich be the only people to legally avoid tax? Why shouldn’t you and I?
Alan wanted to write not for the super-rich (some of his personal clients have incomes running to many millions of pounds a year) and not for multi-nationals (again his private client base includes some pretty big names), 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 Alan’s experience.
| We agreed that he would write for an audience with some say as to how they receive their income (whether it comes from investments or they earn it). They could be on PAYE, directors, self-employed, entrepreneurs or retired but they must be able to influence their financial affairs or they wouldn’t be able to act on Alan’s suggestions. |
Alan decided that he would concentrate on six core taxes: Income Tax, National Insurance, Capital Gains Tax, Inheritance Tax, Corporation Tax and VAT. Yes, he would cover all the others but he would focus his effort on the taxes that hit people the hardest. Which is exactly what Alan has been doing for Schmidt Report readers ever since.
The results can be instant. Overnight one of my readers boosted his net disposable income by 15p in the £1.
This is what one new subscriber – Harry Carpenter from Battersea in London - had to say about a piece Alan wrote in 2007 on 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 waffle on about putting money into my pension fund or investing in ISAs. He just didn’t get it. 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 fed up with his accountant.
Ordinary accountants are not the best source of tax advice.
The fact is that a large percentage of accountants struggle to keep up to date with tax. In a way this isn’t surprising. Every year the Finance Act gets fatter and fatter. The latest one, for instance, runs to 458 pages, which is about three 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 all about tax, it’s a matter of re-learning it over and over again.
In a nutshell, ordinary accountants, through no fault of their own, are rarely the best people to talk to about tax planning. 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.
Speaking of track record, I started this letter by listing some of Alan’s successes with his very high-net-worth private and major corporate clients.
But Alan is just as good at coming up with workable tax-saving strategies for readers of the Schmidt Report.
When Alan took on the newsletter’s editorship he made me three promises. The first promise was:
| “I will make sure that any tax-saving solution that I suggest is 100% practical.” |
Alan’s ideas are simple and they are workable. Moreover, they are accompanied by step-by-step instructions so that Schmidt Report readers can actually act upon them. His second promise was:
| “I guarantee that the editorial will be relevant and understandable.” |
Alan sticks to the key areas of taxation (see above) and devises plans that are within the scope of ordinary taxpayers to execute. He describes them in plain English without recourse to jargon. Which brings us to his third promise:
| “I will stick to legal, uncontroversial plans that are unlikely to attract unwanted attention from the tax authorities.” |
This is crucial. Schmidt Report readers are law abiding and don’t want to do anything that is going to irritate or inflame HMRC. Alan is not one for pushing the envelope. He avoids any tax plans that he feels may be challenged. “Why stir things up? There are no shortage of legitimate tax planning opportunities if you know how to go about it.”
(However, Alan does write regularly about dealing with the taxman and offers plenty of tips on avoiding inquiries, bringing inquiries to a satisfactory conclusion etc.)
Schmidt Report readers are more than happy with Alan’s advice
Did Alan stick to his promises? The Schmidt Report subscribers clearly think so:
| • | “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. |
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| • | “We have reorganised 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. |
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| • | “For the first few issues I thought I had wasted my money but then – bang – 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. |
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| • | “I am delighted to say that your plan will mean I pay capital gains tax at 18% instead of income tax at 50%. A saving of over £72,000. Hurrah!” Geoffrey Bush, Swansea. |
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| • | “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. |
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| • | “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 |
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| • | “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. |
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| • | “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. |
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You’ll notice that the amount of tax saved by Schmidt Report readers varies dramatically.
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, taxes are set to rise and rise and rise.
After all, the UK national debt is close to £800 billion. Add in pension contributions and PFIs (private finance initiatives), which the government are obliged to pay then the amount is £1,340 billion. Add in the cost of purchasing shares in failed banks and building societies over the next two years and the figure shoots up to £1,690 billion. Compare this to a national debt of £437 billion in 2003 and you can see why the tax burden is going to get heavier and heavier.
If you were a Schmidt Report reader how much tax - in cash terms - could you hope to save? I was curious to know more about this and in 2007 I polled a thousand readers and asked them: “How much tax have you saved as a direct result of something you learned from my newsletter?” This was the result:
In other words, 6 out of 10 readers have saved over £1,000 as a result of reading my newsletter and an even more satisfactory 4 out 10 readers saved over £10,000. True, the really massive savings (over £250,000) were restricted to a much smaller percentage of readers but look at the average saving… |
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| On average Schmidt Report readers have saved £18,345 (and this includes the readers who didn’t save anything at all or didn’t tell us). |
Remember, too, that while the country has been in recession the total amount of tax paid to the government has fallen. Businesses are making smaller profits and some will fail. Individuals are earning less and some will lose their jobs. British taxpayers may feel they have had a tough time of it over the last few years, what with Gordon Brown’s stealth taxes and the decision to increase the marginal rate of income tax to 50%. However, despite the change of government, before too long many high earners may look back on this period with nostalgia. After all, in 1974 the marginal income tax rate was 98% and it was still up at 60% as recently as 1988.
| “Our economic crisis is so bad that over the next few years, taxes are very likely to rise and rise and rise.” |
Remember, too, that one of the ways in which governments raise extra tax without it being obvious is to increase the number of people affected by a particular rule. The 50% rate only applies to income over and above £150,000 at the moment. How long until it applies to income over £100,000? £50,000? History tells us…maybe not long at all.
Why stand by and let yourself be soaked by future governments when it could all be avoided?
Everything you need to know about saving tax… in 15 minutes a monthOne of the key benefits of the Schmidt Report is that you can speed-read it in about 15 minutes a month. And a remarkably enjoyable read it is, too, because Alan (our editor) manages to make even the driest subject fascinating. Obviously, there will be articles of particular relevance that you will want to study, but the important point is that saving tax need not be tedious or time consuming. |
The country is moving, then, into an even higher tax environment and I am not going to be so disingenuous as to pretend that this is bad news for my newsletter. Naturally, I am
pleased when the Schmidt Report is thriving. However, it wouldn’t thrive if there weren’t
such a huge gap in the market for sound, reliable and effective tax planning advice. A gap that isn’t filled by ordinary accountants or by any other publication.
So far I have introduced Alan Pink (the editor), I’ve given you actual examples of the tax savings he (and the Schmidt Report) has achieved for a selection of individuals and companies and I have explained why tax planning is more important in the current climate than ever before.
The question I haven’t fully answered is: What can the Schmidt Report do for you? Before I say a word on this subject, a quick outline of the newsletter:
| » | Published monthly. |
| » | Jargon-free articles explaining how individuals and companies can dramatically cut their tax bills. |
| » | Free regular email updates. |
| » | Free website containing thousands of useful articles. |
| » | Free bonus reports throughout year. |
| » | Free Ask the Experts service with unlimited access. |
Of these different features the last is worthy of special mention:
As a reader you have free, unlimited access to Alan Pink and his team of tax experts. Even if you subscribed to the Schmidt Report just to take advantage of this Ask the Experts service you would be getting fantastic value for money.
In fact, as a subscriber you will receive a great deal more. The benefits can be summarised as follows:
| 1. | You will pay substantially less personal tax. |
| 2. | You will pay substantially less tax in your business if you own one. |
| 3. | You will learn how to protect your assets from the HMRC now and how to protect your estate after you have gone. |
| 4. | You will be informed of the latest tax loopholes and how to apply them. |
| 5. | You will be kept up to date with constantly changing tax legislation and other news. |
| 6. | You will be able to plan for a tax-free retirement. |
| 7. | You will learn how to avoid the unwanted attention of HMRC and other tax authorities. |
| 8. | You will know how to protect yourself if any tax authority should decide to investigate you. |
| 9. | You will have unlimited access to articles from our back issues. |
| 10. | You will have the satisfaction of knowing you are always one step ahead of the taxman and the peace of mind that comes from knowing you are safe from attack. |
| 11. | You will be able to check that your accountant is looking after your best interests and be in a position to make suggestions of you feel he (or she) isn’t. |
| 12. | You will have experts to turn to you if you need personalised advice (thanks to our Ask the Experts service). |
“Yes, yes, yes,” I can hear you saying to yourself, “that is all very well but if I was to run my eye down the contents page of a typical issue what sort of actual articles would I find to read?” Let me give you just a handful of examples:
| » | 23 ways to extract profits – tax-free – from limited companies. Boost your net income by 15% or more. |
| » | 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. |
| » | Retiring abroad. Top 10 retirement destinations reviewed from a tax perspective. |
This is just a random sample to give you a feel for the newsletter.
Basically, every issue is packed to bursting point with tax advice that you can press into immediate use…tax advice that will save you thousands and thousands and thousand of pounds.
As you will have gathered I am confident the Schmidt Report is going to save you a really worthwhile amount of tax. I am so convinced of this that I am willing to make you an extraordinarily generous offer. An offer that is worth more than £160.
Over the last 20 years my newsletter has enjoyed what the publishing industry call ‘high retention’. Over 80% of new readers are so satisfied with the newsletter that they decide to renew their subscription for a second year. The figure actually improves in the third year. Basically, I know that if I can get a single issue into your hands the chances are you will become a long-term reader. Knowing this means that I can afford to give you lots of incentives to just try the publication out.
| INCENTIVE 1: my FREE, no-strings-attached report: 20 Proven Tax Plans. |
I must stress that this report – which we normally sell for £67.50 - is yours to keep whether you decide to subscribe or not. Given its title I don’t think you’ll be surprised to find out that it contains full details of 20 proven tax plans. Each example includes details of:
| » | Tax plan objectives |
| » | Who can use the plan. |
| » | The reason why it works. |
| » | Step by step instructions. |
| » | Mistakes to avoid. |
| » | Extra things you can do to make the plan even more effective. |
| » | Further sources of information. |
Plans cover how to save Income Tax, Corporation Tax, National Insurance, Capital Gains Tax, Stamp Duty, VAT, Inheritance Tax, Council Tax and all the other taxes and duties.
The primary contributor was Alan Pink with additional material by members of his tax practice.
| INCENTIVE 2: our FREE fact sheet: 101 Top Tax Tips - each one of which is worth a minimum of £1,000. |
Another publication that I am happy to send you without cost or obligation on your part and that you can keep, whether or not you become one of our regular subscribers. The fact sheet lists 99 tax tips each of which – if put into practice – will be worth a tax saving of at least £1,000. We normally sell this report for £24.50.
| INCENTIVE 3: a FREE trial copy of the Schmidt Report. |
The day I receive your risk-free Trial Application I will send you – first class – the current issue of the Schmidt Report. This way you can prove to your own satisfaction that the newsletter is everything I promise. If not, keep the copy or pass it on to a friend or colleague.
| INCENTIVE 4: if you decide that you do want to continue your subscription to the Schmidt Report then the first year will be HALF PRICE. |
I’m going to tell you the annual subscription price of the Schmidt Report in a moment and I think you are going to be surprised at how inexpensive it actually is. If I say that it equates to around 5-7 minutes of Alan Pink’s time you will get an idea of the sort of value it offers. Before we get onto the actual cost, however, let me introduce Incentive Four. If you do decide to subscribe then your first year’s subscription will be half price.
| INCENTIVE 5: FREE access to our Ask the Experts panel for 30 days. |
When I send you your first copy of the Schmidt Report I will include the email and postal address you can use to access our Ask the Experts panel – which is headed up by the editor, Alan Pink. You can submit any inquiry you want for a full 30 days from receipt. So if you have any tax questions or need any tax advice this is a way to get an answer from a leading tax specialist without it costing you a penny. (If you decide to remain a subscriber you can use this service as much as you require).
| INCENTIVE 6: I’ll throw in free access to our website |
When you become a trial subscriber I will throw in free access to our website for a whole month. So if there is a subject you are keen to research you have plenty of time to read up about it. (Again, if you decide to stay with us you can use this service as much as you require).
| INCENTIVE 7: No-quibble money-back guarantee that the Schmidt Report will save you tax. |
I guarantee the Schmidt Report will save you tax or your money back.
Suppose you subscribe to my newsletter but after three or four issues you haven’t seen any way to apply the tax saving information we have supplied? No problem. At any time we will refund the unused portion of your subscription in full.
So, what do you imagine that a specialist tax newsletter that promises to provide you with the very best tax saving advice available in the country should cost?
For the next 12 months…just £99.
Clearly, it is only going to take one, very, very modest tax-saving tip to make your subscription an extremely worthwhile investment. It is a no-risk investment, too, when you bear in mind the free trial issue, free report, free fact sheet, free use of our Ask the Experts service, free access to our website and full money-back guarantees.
If you are fed up with your current tax bill – if you are worried about how much your tax bill is going to cost you in the future – then I urge you to take advantage of our free trial offer. At a bare minimum you are going to walk away with £92 of tax-saving reports free of charge:
20 Proven Tax Plans written in plain English and containing step-by-step instructions on how to substantially reduce or completely avoid income tax, capital gains tax, inheritance tax and corporation tax.
101 Top Tax Tips each one of which is worth a minimum of £1,000.
All you have to do is click on the following link for your FREE TRIAL. You can choose whether you wish to pay via PayPal or standing order.
I look forward to welcoming you as a subscriber in the very near future.
Yours sincerely
Justin Power
Publisher
PS Woops. I forgot to say that I am happy to take your calls personally. If you telephone our offices on 020 7353 6606 and ask for me I’ll be delighted to assist you.
Remember, the two free reports and your first issue of the newsletter are yours to keep whatever you decide.