# Is Dubai for me?



## wetnwindy (Oct 4, 2012)

Hi all,

I currently do my own online marketing in the UK, I make mid 5 figures a month & I'm paying 40% tax in the UK. All my money comes from the US through bank wire, would living in Dubai benefit me? England isn't anything amazing & I've been to Dubai a few times so I wouldn't mind moving out there but surely I must be missing something? Is it really 0% tax and as good as I've heard? As you can imagine I'd be saving a hell of allot of money, 40% is almost half of what i earn, not to mention the 9% NI.

Thanks


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## m1key (Jun 29, 2011)

Some things are more expensive, others less. Compared to London I would say it is a little more expensive overall. If you are self employed and you are doing business with the US then a freezone might work for you. There are several freezones, which is best for you, only you can decide.


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## Mr Rossi (May 16, 2009)

You could do what you are doing with a Freezone license, approximate cost for the RAK one is 18,000 AED per year plus maybe 2k AED set up fees here and there. You will need 100,000 AED capital to set up though but you can withdraw that (and pay it back if you have borrowed it) once you are up and running. Other freezones are more expensive but don't require the capital, RAK is generally the most popular though. 

Remember your running costs may differ greatly as well as your own cost of living and that might take up any tax savings you may make.


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## EddieE (Sep 15, 2012)

wetnwindy said:


> Hi all,
> 
> I currently do my own online marketing in the UK, I make mid 5 figures a month & I'm paying 40% tax in the UK. All my money comes from the US through bank wire, would living in Dubai benefit me? England isn't anything amazing & I've been to Dubai a few times so I wouldn't mind moving out there but surely I must be missing something? Is it really 0% tax and as good as I've heard? As you can imagine I'd be saving a hell of allot of money, 40% is almost half of what i earn, not to mention the 9% NI.
> 
> Thanks


You make mid 5 figures a month? Is that £? 

So that means £55,000 a month, you pay around £20,000 a month tax and you are wondering whether 0% tax is worth it?

Unfortunately one thing you won't see in Dubai is pigs flying....

Maybe an accountant would be a decent first stop?


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## wetnwindy (Oct 4, 2012)

Thanks for the replies,

I have an accountant and all my money goes into a LTD business account with 22% corp tax. I then get a wage just below the 40% tax break from my ltd. Obviously with paying 40% tax and 9% NI though I wanted to save as much as possible & moving out of the UK isnt a problem for me. Am I right in thinking I have to have been outside of the UK for a full tax year before I no longer need to pay UK tax fees?


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## Canuck_Sens (Nov 16, 2010)

wetnwindy said:


> Thanks for the replies,
> 
> I have an accountant and all my money goes into a LTD business account with 22% corp tax. I then get a wage just below the 40% tax break from my ltd. Obviously with paying 40% tax and 9% NI though I wanted to save as much as possible & moving out of the UK isnt a problem for me. Am I right in thinking I have to have been outside of the UK for a full tax year before I no longer need to pay UK tax fees?


Eddie is spot on in this one. It boils down at your costs in running the business from here. And your accountant Shoukd be able to help you to figure that out and about residency status vs tax regime


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## BedouGirl (Sep 15, 2011)

I would say Elphaba and Nikkisizer are the people on here to ask. Not sure if you have enough posts yet to send a PM, but they are the most qualified.


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## EddieE (Sep 15, 2012)

I think the OP is full of ****....

If s/he was making that sort of money, they'd already have an offshore company and would be paying best part of nil tax.

Troll.


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## jojo (Sep 20, 2007)

Maybe stay in the UK and pay the taxes in the correct fashion to help the economy?????

Jo xxx


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## naru (Sep 25, 2012)

hEY,

I agree with jojo. Stay where are you don't focus the tax free or other concepts that is currently not relevant for your progresses.

Just a quick update about on line market here in Dubai... so new to the market and people are still trying to figure it out how the arabs build so much of buildings here so fast... bubble is broken and everybody is trying to blow it when there is a hole. If you are a expert and if you think you stand ahead, you are welcome, be the first, Dubai is all about first experience...

Your always welcome to Dubai but without tax you are alone when you need someone...


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## Canuck_Sens (Nov 16, 2010)

BedouGirl said:


> would say Elphaba and Nikkisizer are the people on here to ask. Not sure if you have enough posts yet to send a PM, but they are the most qualified.


 He needs to do research and find accountants or people who know the costs in running his businesses here. And a lot of people know this, but research starts with the interested party.


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## Canuck_Sens (Nov 16, 2010)

EddieE said:


> I think the OP is full of ****....
> 
> If s/he was making that sort of money, they'd already have an offshore company and would be paying best part of nil tax.
> 
> Troll.


Wow hold on, not everybody knows where the best tax haven is....I know some countries but cannot say at all the best one. It depends...And I do not know if he has a small business, sole proprietorship or whatever...no point to jump the gun.


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## Canuck_Sens (Nov 16, 2010)

jojo said:


> Maybe stay in the UK and pay the taxes in the correct fashion to help the economy?????
> 
> Jo xxx


You made me smile... but people have the right to plan their lives and businesses to suffer less tax burden. After all, that's what most of us are doing here anyway. Let's not be hypocrites, most of us are here because legally speaking we like the idea of not paying taxes at all


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## Mr Rossi (May 16, 2009)

EddieE said:


> I think the OP is full of ****....
> 
> If s/he was making that sort of money, they'd already have an offshore company and would be paying best part of nil tax.


I was wondering how someone can get a five figure monthly income via affiliate marketing. That's a helluva lot of blogs and click throughs.


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## jojo (Sep 20, 2007)

Canuck_Sens said:


> You made me smile... but people have the right to plan their lives and businesses to suffer less tax burden. After all, that's what most of us are doing here anyway. Let's not be hypocrites, most of us are here because legally speaking we like the idea of not paying taxes at all


 Well I'm not a hypocrite, I'm in the UK and work PAYE, my husband has a successful business and pays taxes and our country needs those taxes. So I cant and wont condone those who think that they're above and beyond their countries tax system that they have used throughout their lives and now, because they earn too much, they seem to think that its ok to be greedy and selfish

Sorry


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## BedouGirl (Sep 15, 2011)

Canuck_Sens said:


> He needs to do research and find accountants or people who know the costs in running his businesses here. And a lot of people know this, but research starts with the interested party.


I agree but I think he or she thinks they are doing research by asking questions on here. If you google Nikki, you will see she has an accounting business. Elphaba, as we regulars know, is an incredible source of knowledge and information. I doubt, if I were in his position, this would be my first 'port of call' because I would have thought he or she would already have an accountant anyway if they are self employed.


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## XDoodlebugger (Jan 24, 2012)

jojo said:


> Well I'm not a hypocrite, I'm in the UK and work PAYE, my husband has a successful business and pays taxes and our country needs those taxes. So I cant and wont condone those who think that they're above and beyond their countries tax system that they have used throughout their lives and now, because they earn too much, they seem to think that its ok to be greedy and selfish
> 
> Sorry


I think the ultimate greed is a government who thinks they have the right to take half of what a citizen earns.


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## Canuck_Sens (Nov 16, 2010)

jojo said:


> Well I'm not a hypocrite, I'm in the UK and work PAYE, my husband has a successful business and pays taxes and our country needs those taxes. So I cant and wont condone those who think that they're above and beyond their countries tax system that they have used throughout their lives and now, because they earn too much, they seem to think that its ok to be greedy and selfish
> 
> Sorry


Jojo why did get so work up with hypocrite


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## jojo (Sep 20, 2007)

XDoodlebugger said:


> I think the ultimate greed is a government who thinks they have the right to take half of what a citizen earns.


 I happen to agree, I'm a firm believer in keeping high earners in their country as they will spend their wealth there and create prosperity. But thats not the case and its not fair that lower earners have to pay higher tax because those who leave dont want to. We all have to be responsible since it was our countries that enabled us to have the lives we know have

Jo xxx


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## Canuck_Sens (Nov 16, 2010)

jojo said:


> Well I'm not a hypocrite, I'm in the UK and work PAYE, my husband has a successful business and pays taxes and our country needs those taxes. So I cant and wont condone those who think that they're above and beyond their countries tax system that they have used throughout their lives and now, because they earn too much, they seem to think that its ok to be greedy and selfish
> 
> Sorry


Jojo why did get so worked up with hypocrite?

My point was persons have the right to find ways to save tax legally even if it means leaving the country. 
But of course it depends on each person.
Most of us leaving in tax haven countries accepted the offers knowing the perks and yes knowing that we didn't need to pay taxes was a great thing

Your act may be noble but businesses are not run like that. You do not need ppl to pay taxes you need a gvt that knows how to lure companies to stay in the country.

Have a look on what the uk gvt did tax wise. It prompted several banks with HQ in london to rethink their presence in turn the uk gvt backed off. Some banks were ready to leave


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## jojo (Sep 20, 2007)

Canuck_Sens said:


> Jojo why did get so worked up with hypocrite?
> 
> My point was persons have the right to find ways to save tax legally even if it means leaving the country.
> But of course it depends on each person.
> ...


I'm not worked up, but I guess I feel that at the moment in the UK, middle income families, especially those who are on PAYE have no choice but to pay huge taxes on their incomes because there are those who earn huge amounts and leave because they're expected to to pay a percentage of their incomes and they dont want to. I cant change the rules, but it doesnt seem fair or right that once someone has a lot of money they can afford to up and leave the country that raised them and not pay taxes if thats what the government want - and no, as I said before, I dont agree with that theiory, altho I'm no politcal animal and I dont want this thread to turn into a political slanging match. But I dont like to see people actively trying to become tax evaders! They're frowned upon here in the UK

Jo xxx


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## Canuck_Sens (Nov 16, 2010)

Jojo,

I can related to what you are saying, but the gentleman who opened the post is inquirying about Dubai to save taxes. This is the main thrust.

Your point is that because you feel the GVT is being unfair to your people you feel he should not move. Well this is noble very noble and perhaps your husband is a lucky guy, but it is not a valid reasoning to tell that gentleman that he should not leave the UK. It is his choice. He may feel he is paying too much I dont know. I dont know his operational costs I only know the revenues. I do not judge on that basis. He asked for information. And we did go off topic did not we ?

If you feel the need to debate about this and by the way this is something not only happening in the UK.. It has been happening in all developed countries let's open a thread in sandpit

During recession it is hard to find a formula, but we all know what people who can barely make ends meet will do or those who think they can save for the future and are qualified ...they might take the chance and try different places if the outlook is grim.


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## wetnwindy (Oct 4, 2012)

I know I need to research this further, I was just curious as to whether its true what people say & if it was I'd dig deeper and speak with an accountant who has experience with Dubai.

JoJo I've been around our government long enough to see how it works, when I was 17 I was a royal marine till the age of 21 & then I went onto working in a school 9-5 full time. I'd often drive home around 3pm and see all the wasters sat outside of the pub during the summer drinking their dole money away. I also know of around 100 parents at the school who claim wrongfully for tax and make a better living than most staff from it. Finally all the hard earned tax you pay is being pissed away on a regular basis by schools who spend unregulated amounts of money.

We would have the school floor resurfaced & school repainted 3 times a year just so we spent the allotted money from that budget otherwise the budget is cut. I speak with various business managers from Government funded schools and they have the same outlook of spend it or lose it. We waste copious amounts of money in Afghanistan (first hand experience) and don't even get me started on the national health service.

Finally Eddie, get a clue mate. Do you have any idea how difficult it is to manage and maintain offshore accounts? It's practically a full time job which I don't have time for.

Everyone else, thanks for your input.


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## Elphaba (Jan 24, 2008)

A few facts. Having either an offshore account or an offshore company does not mean a UK resident does not pay UK income tax. A person's liability to UK tax depends on where they are resident, for how long and where the income arises.

wetnwindy - if you know of people who are fiddling the UK tax system why don't you report them?


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## wetnwindy (Oct 4, 2012)

Elphaba said:


> A few facts. Having either an offshore account or an offshore company does not mean a UK resident does not pay UK income tax. A person's liability to UK tax depends on where they are resident, for how long and where the income arises.
> 
> wetnwindy - if you know of people who are fiddling the UK tax system why don't you report them?


I have done twice


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## rajir (Oct 7, 2012)

jojo said:


> I happen to agree, I'm a firm believer in keeping high earners in their country as they will spend their wealth there and create prosperity. But thats not the case and its not fair that lower earners have to pay higher tax because those who leave dont want to. We all have to be responsible since it was our countries that enabled us to have the lives we know have
> 
> Jo xxx


Sorry my intention is not to hurt anyone but facts are facts. I think 5 digit salary in UK is not enough for the survival of a family. Because govt in the name of taxes squeezes half of that & out of the remaining 50 percent rents or mortgage payments will be for 30-35 percent remaining is for transportation, grocery any remaining for entertainment. It's a common scene nowadays to see huge crowds at poundland & 99P stores, because of inflation. The govt in view of creating equal quality of living is in fact squeezing hard working middle class and in return giving them sub standard lifestyle choices. Those who are on benefits are living in large houses having multiple vacations and hard working taxpayers cannot even afford to have a decent family vacation.:boxing


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## ccr (Jun 20, 2010)

rajir said:


> I think 5 digit salary in UK is not enough for the survival of a family.


I am confused... Are you referring to 5-digit ANNUAL salary or 5-digit MONTHLY salary per OP ?



wetnwindy said:


> I make mid 5 figures *a month* &


50,000 pound or US$80,000 / month (close to US$ 1 million / year) and can't feed a family ?


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## Mr Rossi (May 16, 2009)

Anyone that truly believes that people on benefits are truly living in big houses, in the pub all the time and taking "multiple vacations" is a gullible mug of the highest order that deserves the misery they are unnecessarily bestowing upon themselves.


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## Elphaba (Jan 24, 2008)

Mr Rossi said:


> Anyone that truly believes that people on benefits are truly living in big houses, in the pub all the time and taking "multiple vacations" is a gullible mug of the highest order that deserves the misery they are unnecessarily bestowing upon themselves.


You could have used a lot less words and written 'is a gullible Daily Mail reader'.


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## Elphaba (Jan 24, 2008)

ccr said:


> I am confused... Are you referring to 5-digit ANNUAL salary or 5-digit MONTHLY salary per OP ?
> 
> 
> 
> 50,000 pound or US$80,000 / month (close to US$ 1 million / year) and can't feed a family ?


Have you seen the price of lobster and caviar recently?


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## ccr (Jun 20, 2010)

Elphaba said:


> Have you seen the price of lobster and caviar recently?


I have.

And since I don't make US$1M / year, we have limited ourselves to fresh-flown coldwater lobster and Russian-caviar only one day / week at the house...


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## Elphaba (Jan 24, 2008)

ccr said:


> I have.
> 
> And since I don't make US$1M / year, we have limited ourselves to fresh-flown coldwater lobster and Russian-caviar only one day / week at the house...


Times are tough...


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## rajir (Oct 7, 2012)

Sorry for the confusion I'm talking about 5digit per annum.


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## vantage (May 10, 2012)

rajir said:


> Sorry for the confusion I'm talking about 5digit per annum.


Rajir,
you are seriously deluded.

a family can survive in the UK on a '5 figure salary' without any problem.
Not quite sure what sort of lifestyle you are referring to?

In fact, i've done it for years, with 2 kids, and have millions of Britons.

four bedroom period farmhouse - large garden. open countryside & chainsaw.
15 minute commute to a capital city
1 x summer holiday abroad
1 x skiing holiday in France
2 x cars
creating savings
adding to pension
not living off baked beans.
no tax breaks
no hand-outs (other than the universal child benefit)
maxxing out Child Trust fund contributions annually.

no, it wasn't London, but it wasn't close to £99,000 PA either.

It's eminently doable. It's not hard to be prudent, but lots aren't.

I do not drink my salary up the wall
I do not subscribe to paid TV
I do not pay for a gym (i use the great outdoors)
and most importantly, i have never bought the Mail or the Express!


then redundancy changed things somewhat, and now i'm here!


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## m1key (Jun 29, 2011)

Sadly I didn't live the dream. No chainsaw for me, just a petrol hedge trimmer in my household


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## vantage (May 10, 2012)

m1key said:


> Sadly I didn't live the dream. No chainsaw for me, just a petrol hedge trimmer in my household


at least it was petrol driven. You're not a real man unless you have several tools that can kill you.
I was particularly fond of my cement mixer too!


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## Elphaba (Jan 24, 2008)

Surely it depends on which five figures?

GBP 15,000 - no go
GBP 90,000 - fairly comfortable


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## vantage (May 10, 2012)

Elphaba said:


> Surely it depends on which five figures?
> 
> GBP 15,000 - no go
> GBP 90,000 - fairly comfortable


absolutely. And location.

to me, '5 figures' refers to the full range. It suggests he wouldn't get out of bed for less than £100K.


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## rajir (Oct 7, 2012)

vantage said:


> Rajir,
> you are seriously deluded.
> 
> a family can survive in the UK on a '5 figure salary' without any problem.
> ...


I am sorry about the good things u have enjoyed back then but It's 2 yrs that we have migrated to UK & I have only one word to say It's difficult.
I do not know about the period house you are talking about but I live in a decent secure suburb in London with good schools, apart from the tax more than half of my husband's salary goes to my landlord as a direct debit,towards rent main chunk of the remaining portion goes towards transportation and other things. 
As you have mentioned both of us neither drink nor smoke we do not even watch movies. Other than the child care vouchers and pension we are hardly left with no money. Not just me here in London I hear everybody complaining that life has become very difficult and most of them are hard working middle class people in decent jobs. 
I think that is why every month one or the other high street stores are going out of business and the only stores to grow are the discount stores.

FYI MY HUSBAND IS WELL ABOVE IN THE 40 PERCENT tax bracket range, but living on 1 person's salary is not workable in UK.


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## vantage (May 10, 2012)

rajir said:


> I am sorry about the good things u have enjoyed back then but It's 2 yrs that we have migrated to UK & I have only one word to say It's difficult.
> I do not know about the period house you are talking about but I live in a decent secure suburb in London with good schools, apart from the tax more than half of my husband's salary goes to my landlord as a direct debit,towards rent main chunk of the remaining portion goes towards transportation and other things.
> As you have mentioned both of us neither drink nor smoke we do not even watch movies. Other than the child care vouchers and pension we are hardly left with no money. Not just me here in London I hear everybody complaining that life has become very difficult and most of them are hard working middle class people in decent jobs.
> I think that is why every month one or the other high street stores are going out of business and the only stores to grow are the discount stores.
> ...


i left the UK 4 months ago.

The key phrase you use is LONDON.
Fortunately, i've never had to live in or near London.
I too would have struggled there, but it is do-able.


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## m1key (Jun 29, 2011)

rajir said:


> I am sorry about the good things u have enjoyed back then but It's 2 yrs that we have migrated to UK & I have only one word to say It's difficult.
> I do not know about the period house you are talking about but I live in a decent secure suburb in London with good schools, apart from the tax more than half of my husband's salary goes to my landlord as a direct debit,towards rent main chunk of the remaining portion goes towards transportation and other things.
> As you have mentioned both of us neither drink nor smoke we do not even watch movies. Other than the child care vouchers and pension we are hardly left with no money. Not just me here in London I hear everybody complaining that life has become very difficult and most of them are hard working middle class people in decent jobs.
> I think that is why every month one or the other high street stores are going out of business and the only stores to grow are the discount stores.
> ...


Sounds like you've chosen to live in a part of London that has particularly high rents. I spent nearly 20 years living in and around London and you can very easily live without earning big bucks and live in a decent part of the city. You just need to know the best places 

If you're spending 50% on your rent you have broken the 3rd rule and you really should be looking to live somewhere less expensive. Transport isn't cheap in London, but you have to take it into account when choosing where to live.

You also have to remember that the UK has been in a slump for a few years. There is a negative atmosphere, even amongst people doing ok; they're just upset the pay rises haven't been so good for a while! High street stores are going out of business because people are spending money online. The same stores went on crazy expansion in previous years and as soon as the growth stopped they got into trouble with big leases and stagnant sales. many of them have gone to the wall because of poor management and vision. The discount stores I think you are alluding to are doing well because of marketing and a few dim people. They sell odd sized versions of what the supermarket sell that cost more per gramm/ml and rely on the public to not be able to work it out.

Pop down to Waitrose and you'll see the economy isn't as bad as the doom mongers will have you believe


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## m1key (Jun 29, 2011)

vantage said:


> at least it was petrol driven. You're not a real man unless you have several tools that can kill you.
> I was particularly fond of my cement mixer too!


I had a petrol mower as well, but that wasn't particularly vicious! I'm very accident prone, so the hedge trimmer could easily have done for me the time I fell off the ladders into the bush


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## saraswat (Apr 28, 2012)

m1key said:


> I had a petrol mower as well, but that wasn't particularly vicious! I'm very accident prone, so the hedge trimmer could easily have done for me the time I fell off the ladders into the bush


Two words.. Weed-Whacker.. 

P.S: no real sense to this post, just really love that term, and wanted to insert it into a related discussion, what with talking about hedge trimmer's, petrol mowers etc.. ...


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## m1key (Jun 29, 2011)

saraswat said:


> Two words.. Weed-Whacker..
> 
> P.S: no real sense to this post, just really love that term, and wanted to insert it into a related discussion, what with talking about hedge trimmer's, petrol mowers etc.. ...


This post made me smile


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## Elphaba (Jan 24, 2008)

Much as I enjoy the witty banter :focus:

Thank you


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