Would you avoid tax if you could?

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  • fedupnow
    fedupnow Posts: 931 Forumite
    I think I'd like to be in a financial position to take advantage of such loopholes. They are legal after all.

    I'd also like to think that I'd donate the money I 'saved' to a worthwhile cause which the current tax system is neglecting. In other words choose where my 'taxes' were going.

    I'd quite like that.
  • This is the same government that provides things like health care, education, refuse collection, law and order.

    Why is it moral for you not to contribute your fair share for those things and for the rest of us to do so instead?

    Your sellective reading there is to be applauded... if you care to check again, you would see I have no issue with paying taxes to hospitals, police etc... I do have an issue paying taxes for subsidised MP's meals, or paying for second homes to be flipped etc etc etc....
    A big believer in karma, you get what you give :A

    If you find my posts useful, "pay it forward" and help someone else out, that's how places like MSE can be so successful.
  • lanavdt
    lanavdt Posts: 158 Forumite
    I don't understand why Cameron decided to shoot himself in the foot like this. Surely he should have made sure there wasn't any higher profile celebs doing it first... Or did he just make sure none of his donors were in that particular scheme?
  • 1jim
    1jim Posts: 2,663
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    I would most certainly pay as little as possible, preferably legally.

    I have may pay as paye so not much chance of taking advantage of various schemes but I do make sure I claim all of my allowances and would encourage everyone to do that.

    I have also been known to pay cash in hand to various tradesmen and have no issue with that at all, certainly it seems the vat rules can have a negative effect on small businesses who just cross over the vat threshold.

    On the Carr issue, I do think the prime minster really should have kept his nose out, if he is going to wade in to carr he should also have said the same of his friend/donor, although he has again showed his true colours in this matter. I fully nderstand the moral argument to pay tax and agree with this......... But, if there is a scheme which is legal then why wouldn't you take it up, as I understand it he had informed the tax office of this arrangement. Let's face it we all would if we could, look how we react to misprices on the grabbit boards. If the government don't like these schemes they need to have a simple but effective tax scheme that makes these schemes illegal, they really shouldn't pick on people going about their lawful activities.
  • System
    System Posts: 178,068
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    I assume that MPs still 'house flip' to avoid CGT? Pot, kettle, black springs to mind
  • JasonLVC
    JasonLVC Posts: 16,762
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    There's a lot of discussion between evasion and avoidance but the other mis-conception is the phrase "loop-hole". It suggests a rip in the fabric of the law which can be stitched back up.

    But many of these tax avoidance schemes are not exploiting loopholes, they are just using the legislation in a way that was not meant or anticipated.

    If I give you a sandwich then I'd expect you to eat it. I wouldn't expect you to sell it on to someone else for profit, feed it to the ducks or use it to absorb a spillage and yet you could do any of these things, but that is not why I gave you the sandwich.

    The Barlow music partnership was designed to encourage investment in the sector by giving a tax break, the Carr scheme allows the company to lend money to the owner for further investment (especially since banks don't lend anymore) and so a good route for entrepreneurs to invest in new business.

    These "loopholes" cannot be closed down without closing down the opportunity it was designed for, which is then counter-productive.
    Anger ruins joy, it steals the goodness of my mind. Forces me to say terrible things. Overcoming anger brings peace of mind, a mind without regret. If I overcome anger, I will be delightful and loved by everyone.
  • fluffymitten
    fluffymitten Posts: 14 Forumite
    edited 27 June 2012 at 1:02PM
    ...but more about how you earn it that determines whether you can take advantage of legal loopholes.

    If you are a PAYE employee, as most people are, then your opportunities to reduce tax are slim and limited to ISAs and a few other things.

    However, if you are self employed, or the sole director of a small limited company, you have more options available to you.

    Not everyone wants to be self employed, or a one man band company as it is risky. Not everyone works in an area where they can choose to take that path.

    I think it is wrong that any person, famous or not, is named and shamed. As other people have commented, it will just drive people out of the country. The way to deal with this is by a complete overhaul of the tax system. It needs to be simplified and the holes plugged. But, all that will happen is another complicated, poorly thought out piece of legislation (IR35 all over again) will be released that will keep tax lawyers comfortable for years to come and will cause small businesses a fortune in compliance.

    No governement, regardless of what they say, is supportive of British talent and small enterprise.

    Rant over, sorry for length.
  • JasonLVC
    JasonLVC Posts: 16,762
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    I think it is wrong that any person, famous or not, is named and shamed. As other people have commented, it will just drive people out of the country. The way to deal with this is by a complete overhaul of the tax system. It needs to be simplified and the holes plugged. But, all that will happen is another complicated, poorly thought out piece of legislation (IR35 all over again) will be released that will keep tax lawyers comfortable for years to come and will cause small businesses a fortune in compliance.

    http://www.hmrc.gov.uk/about/tax-defaulters-q-a.htm

    Since April 2010, HMRC have had the power to publish details of any person who have had deliberate tax defaults or wrongdoings....although of course a banal list of nobodies isn;t going to focus the publics attention half as much as a list stuffed full of celebs.

    On your other point about poorly thought out legislation, I totally agree, it will hurt a lot of innocents whilst the guilty few will capitalise upon the confusion.
    Anger ruins joy, it steals the goodness of my mind. Forces me to say terrible things. Overcoming anger brings peace of mind, a mind without regret. If I overcome anger, I will be delightful and loved by everyone.
  • If I could get away without paying any tax I would, we pay tax in our wages then we are taxed again on Food, Drinks, Clothes, Utility Bills etc and why for the poor to get poorer and the big fat cats at the top to get richer.

    A tax free month per year would be good for me - if only it were possible
  • 1jim
    1jim Posts: 2,663
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    JasonLVC wrote: »
    http://www.hmrc.gov.uk/about/tax-defaulters-q-a.htm

    Since April 2010, HMRC have had the power to publish details of any person who have had deliberate tax defaults or wrongdoings....

    But correct me if I am wrong, the Carr tax thing was neither a default or a wrongdoing. It was within the law as it stood so therefore legal and he had declared it to hmrc, so therefore should not have been named
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