It makes me sad
Isn't that the problem though? I take your point about the stress (I've been under HMRC investigation for 2.5 years now) but if we all just accept that HMRC is going to go after everything in the end and we might as well go ltd or PAYE, haven't they basically won? Aren't they just forcing people to accept that the fundamental right to arrange your tax affairs in such a way as to ensure that you pay the minimum possible is gone forever as if it had never existed?
When I was a junior contractor, I ran a limited company because I didn't make enough to make anything else worthwhile. As my income has increased, I have sought to minimise the amount I pay in tax and this has, up to now been perfectly legal (still is actually). I understand the thought process but if we all give up avoidance schemes, what is to stop them attacking limited companies further and eroding the benefits of them before eventually declaring any form of limited company for one or two people "businesses" to be illegal thus forcing all contractors to be PAYE?
10 years ago I began to believe that this is what HMRC wanted to do, but I thought they would fail. Now it would appear that they are beginning to succeed.
That makes me very, very sad and not for merely fiscal reasons.
BTW - I know that you are not necessarily condoning what is happening, just suggesting that for a more peaceful life it might be worth considering.
Isn't that the problem though? I take your point about the stress (I've been under HMRC investigation for 2.5 years now) but if we all just accept that HMRC is going to go after everything in the end and we might as well go ltd or PAYE, haven't they basically won? Aren't they just forcing people to accept that the fundamental right to arrange your tax affairs in such a way as to ensure that you pay the minimum possible is gone forever as if it had never existed?
When I was a junior contractor, I ran a limited company because I didn't make enough to make anything else worthwhile. As my income has increased, I have sought to minimise the amount I pay in tax and this has, up to now been perfectly legal (still is actually). I understand the thought process but if we all give up avoidance schemes, what is to stop them attacking limited companies further and eroding the benefits of them before eventually declaring any form of limited company for one or two people "businesses" to be illegal thus forcing all contractors to be PAYE?
10 years ago I began to believe that this is what HMRC wanted to do, but I thought they would fail. Now it would appear that they are beginning to succeed.
That makes me very, very sad and not for merely fiscal reasons.
BTW - I know that you are not necessarily condoning what is happening, just suggesting that for a more peaceful life it might be worth considering.
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