I look after tax issues for people in business, help with employment issues, property taxation and offshore issues such as residence and domicile conundrums. I provide tax consultancy to accountants in practice who cannot be expected to keep up with all the tax changes in addition to the evolving accountancy world where I would certainly defer to them.
I have gone on record in saying that I am uncomfortable with aggressive tax avoidance schemes, but that is because so many end in tears and those who go into them are not always properly advised of the risks of failure, the protracted correspondence with HMRC, and the heartache.
However, we live in a democratic society in contrast to old South Africa or the nineteenth century era of colonialism, so while I do not like, and do not recommend, the more extreme schemes I am not in a position to say people should not participate any more than I would say that people should be banned from smoking in their own homes even though I find the whole idea of nicotine-soaked wallpaper very distasteful.
Also as a free thinker I like to determine my own morality based on my experience, not borrow the latest fashionable one.
So, Rebecca, I do agree with you in many ways, and it is unfortunate that HMRC have seen so many staff cuts and so many of the more senior staff left are technically not up to speed.
The Government policy in engaging workers as contractors through limited companies is to avoid their responsibilities as employers, such as notice requirements and pension obligations. That is why we have such double standards carried over from the previous administration.
... led to an over-reliance on technology rather than people, by which I mean HMRC staff who actually understand tax. Dave Hartnett did work at the coal face once, and I had hoped his successor would also be a former Inspector of Taxes rather than some bussed-in civil servant from elsewhere (with the greatest respect of course).
The budget cuts imposed by G Brown have been seriously detrimental to HMRC's ability to function effectively. I was in a room with Dave around three years ago when he complained about Brown's funding cuts, which were no doubt rather counter-productive from the Treasury's point of view. The Coalition expects the department to make more cost savings.
Dave is not the best diplomat of course. For most of his professional life he was probably more effective being rather undiplomatic.
Since comparitively few businesses can use the current £50K AIA due to lack of cash or seeing the need, this is a headline-grabbing non-event in my view.
I attended an HMRC Roadshow earlier in the year. I enjoyed it and thought it worthwhile. My review is here. I would recommend any professional practitioner to attend. After all, it is not so often many of us get to talk to HMRC staff who actually know anything about tax! Go along if there is one in your area.
Yes, but there's more! I agree with your comments and it is important to be in touch with your referral network, and manage them as necessary. There are networking events at all times of the day where one may meet potential referrers, and I regularly attend breakfast meetings. However, networking is a two way street. It is important to give referrals and one may find that one needs to give quite a few and help our network before they bring us rewards in the shape of referrals and new clients.
This means responding positively with a recommendation when someone says they are looking for an architect, an IFA, an ink supplies company or a contract cleaner. Managing our network means respecting them and helping them. Their reputation depends on one's own firm doing a good job for their clients or customers and ours depends on their dealing well on the clients and contacts we refer to them. That is a great incentive to maintain quality service both ways.
Lost... I am sorry but I do not follow this. The wealthy and high-earners (and there is a distinction) can afford the travel and the air fares to pay less tax. I hate artificial schemes, but being non-resident is hardly tax avoidance. As Andrew suggests, why would anyone volunteer to pay tax? Like most I have always dutifully paid my share but if on my holidays I can buy a new camera within my duty-free allowance, why should I not do so rather than pay VAT or other duties on a purchase at home?
Sports stars have a short period of high income and might be expected to employ specialist advisers to help them through the tax maze to give them a long and comfortable retirement. Careful planning is to be expected but it does not tell us that tax avoidance is a way of life; that is such a sweeping statement which needs more support than is given in your article.
Surely a general anti-voidance rule would amount to repression if it were enforceable, which in practice it wouldn’t be.
My answers
Up to a point, Lord Copper
"Judge not, that ye be not judged." Matthew 7:1
I have gone on record in saying that I am uncomfortable with aggressive tax avoidance schemes, but that is because so many end in tears and those who go into them are not always properly advised of the risks of failure, the protracted correspondence with HMRC, and the heartache.
However, we live in a democratic society in contrast to old South Africa or the nineteenth century era of colonialism, so while I do not like, and do not recommend, the more extreme schemes I am not in a position to say people should not participate any more than I would say that people should be banned from smoking in their own homes even though I find the whole idea of nicotine-soaked wallpaper very distasteful.
Also as a free thinker I like to determine my own morality based on my experience, not borrow the latest fashionable one.
So, Rebecca, I do agree with you in many ways, and it is unfortunate that HMRC have seen so many staff cuts and so many of the more senior staff left are technically not up to speed.
Nothing to do with tax avoidance
The Government policy in engaging workers as contractors through limited companies is to avoid their responsibilities as employers, such as notice requirements and pension obligations. That is why we have such double standards carried over from the previous administration.
Gordon Brown's cost cutting...
... led to an over-reliance on technology rather than people, by which I mean HMRC staff who actually understand tax. Dave Hartnett did work at the coal face once, and I had hoped his successor would also be a former Inspector of Taxes rather than some bussed-in civil servant from elsewhere (with the greatest respect of course).
The budget cuts imposed by G Brown have been seriously detrimental to HMRC's ability to function effectively. I was in a room with Dave around three years ago when he complained about Brown's funding cuts, which were no doubt rather counter-productive from the Treasury's point of view. The Coalition expects the department to make more cost savings.
Dave is not the best diplomat of course. For most of his professional life he was probably more effective being rather undiplomatic.
Spurs?
What planet...?
Little effect
Since comparitively few businesses can use the current £50K AIA due to lack of cash or seeing the need, this is a headline-grabbing non-event in my view.
Tim Hardin, the writer of the original song deserves remembering
Hang on to a Dream, Don't Make Promises, Reason to Believe (recorded by Rod Stewart).
Well worth considering!
I attended an HMRC Roadshow earlier in the year. I enjoyed it and thought it worthwhile. My review is here. I would recommend any professional practitioner to attend. After all, it is not so often many of us get to talk to HMRC staff who actually know anything about tax! Go along if there is one in your area.
There are many more!
An illustrious group of ten. There are some notable omissions, though, I am sure. I suggest:
@taxhelpukcom James McBrearty 8,204 followers
@FraukeGolding Frauke Golding 60 followers
and me @JonStow Jon Stow 1798 followers
with apologies to many accountants and tax advisers I follow but do not have the time to look up for you.
Yes, but there's more!
I agree with your comments and it is important to be in touch with your referral network, and manage them as necessary. There are networking events at all times of the day where one may meet potential referrers, and I regularly attend breakfast meetings. However, networking is a two way street. It is important to give referrals and one may find that one needs to give quite a few and help our network before they bring us rewards in the shape of referrals and new clients.
This means responding positively with a recommendation when someone says they are looking for an architect, an IFA, an ink supplies company or a contract cleaner. Managing our network means respecting them and helping them. Their reputation depends on one's own firm doing a good job for their clients or customers and ours depends on their dealing well on the clients and contacts we refer to them. That is a great incentive to maintain quality service both ways.
Lost...
I am sorry but I do not follow this. The wealthy and high-earners (and there is a distinction) can afford the travel and the air fares to pay less tax. I hate artificial schemes, but being non-resident is hardly tax avoidance. As Andrew suggests, why would anyone volunteer to pay tax? Like most I have always dutifully paid my share but if on my holidays I can buy a new camera within my duty-free allowance, why should I not do so rather than pay VAT or other duties on a purchase at home?
Sports stars have a short period of high income and might be expected to employ specialist advisers to help them through the tax maze to give them a long and comfortable retirement. Careful planning is to be expected but it does not tell us that tax avoidance is a way of life; that is such a sweeping statement which needs more support than is given in your article.
Surely a general anti-voidance rule would amount to repression if it were enforceable, which in practice it wouldn’t be.