Quote robdave2k at 20 Feb 2015 3.53pm
Quote nickgusset at 18 Feb 2015 3.16pm
Quote CamberleyE6gle at 18 Feb 2015 12.24pm
Yes but no one pays tax on the first 10k. ISA's hardly deal with millions of pounds per individual. This isn't what the thread is about.
However the bloke from Camberley seems to think that because pensions have tax breaks to encourage more to save for the future, that makes it ok for Starbucks to claim they aren't making any money whilst diverting monies here there and everywhere so as not to pay tax. Tax which could fund hospitals to heal the sick or housing so that ex servicemen (supposedly our boys and heroes) can live somewhere other than the street.
Incorrect. The tax allowance on income steadily diminishes over £100k and is zero by £150k. Although you didn't answer the question I think we can safely assume you take advantage of tax breaks offered to all and therefore you are a tax avoider which is your right and perfectly legal for which you nor anyone else can be criticised. Just as it is for companies to do the same, provided it doesn't become tax evasion. Given that you don't seem to like that can you advise us where the line should be between tax avoidance measures that are acceptable and tax avoidance measures that are not acceptable to you and how that is justified?
What's the figure for unpaid tax? Is it about £34 billion? I hardly think that money for ISA's, tax breaks through earnings and pensions is the issue here.
You say that what companies and very rich are doing to 'avoid' paying tax through using savvy accountants is because loopholes are being exploited. There was a story circulating that some very very rich people are actually paying less tax than their cleaners! Whether this is true or not I don't know.
What you don't say is whether this is agreeable or not.
My argument is that the government of the day (and previous ones too) are not doing enough to stop these loopholes nor enough to stop the avoidance of tax being paid on goods and services provided here because the money is being 'moved' elsewhere.
Nick, quite agree with the sentiments - but sitting in public sector bubble saying "they should do this" is never going to change anything.
The skills lie in the private sector - why would you work for HMRC for £50k per year when you can earn far more working for the other side. HMRC introduced a number of counteraction mechanisms last year, most of which were ill thought out. I deal with HMRC on a daily basis and the issue is the way legitimate tax payers are targeted, but HMRC has a finite resource to work with.
If you want to change the laws - like any organisation they should take the right advice and pay the right people to help close those loopholes.
Accountants get a bad rap, it isn't accountants that design these schemes - it is Tax Barristers. Accountants have a duty to work within the laws to provide for their clients.
I wouldn't want a teacher to push their feelings on a subject onto a child because they feel that way, in the same way and accountant should not entertain tax evasion.
The scary thing with the tax avoidance is a lot of it doesn't work, but HMRC are too slow or ill prepared to get things into court and then compound the problem will ill thought out, vote winning responses that will take even longer to get through.
Also bear in mind what they do to the rich, will eventually filter to the poor. If they attack the people who can afford to defend themselves, then there is nothing to stop this filtering down the chain. Guilty until proven innocent is how HMRC seem to operate these days.
The system is broken, and the only way to fix it is for the powers that be to engage the right specialists and listen to what the accounting profession is telling them about what is wrong!
I pay my tax, i've no interest in seeing my clients evade it.
It's already 'filtered down' but this time the rich are richer.
Go figure.
Edit: As for HMRC having ''finite resources''.............If they utilised their resources wisely they'd spend less on catching the odd minnow or two and go land themselves a whale.
But they won't because that's not what the powers that be want.
Just an observation.