Government crack down on tax evasion

[Saddo]

If they really want to fix the tax system then they need to radically simplify it - these so called "loopholes" exist because of the idiotic complexity of the whole creaking system.

If IR35 was constructed differently it would probably be more acceptable to all concerned.

For example: Regardless of your income, the first £20K must be treated as salary. That includes pensions and investment incomes etc. It would affect Branson and others equally. Would be very simple to administer and no complicated arguments about exceptions. The treasury would benefit. Everyone's a winner.

Instead we have the farce that 2 contractors can be sitting side by side, one is subject to IR35 and the other isn't. The insurance and legal industry are creaming off the top, and heaven knows how many HMRC drones are employed in non-profitable jobs chasing after IR35?

[BlasterBates]

I have a feeling that when they simplify it, that is exactly what is going to happen, everyone pays NI, I don't think it'll be 20 grand more like 40 or 50 though. If they were going to abolish it they would have proclaimed it from the roof tops, the Tories at any rate, but I don't hear that, I hear "simplify" newspeak for raising tax, I would say.

[richy]

Yep, Danny Alexander compared tax avoidance to benefit cheats.

Also, maybe just semantics, but he referred to it as "avoidance and evasion" several times, with the word avoidance coming first - as if avoidance had the primary precedence.

I suggest you report Mr Alexander to the HMRC fraud tip off line. He evaded paying capital gains tax, and included expenses which were not "wholly and necessarily incurred" for his family to save paying tax.

Vince Cable and Nick Clegg defend Danny Alexander against tax claims | Politics | STV News

[Vallah]

Mr Cable also insisted the new Chief Secretary to the Treasury had done "nothing improper", with regards to CGT. He said Mr Alexander had never "flipped" designations and simply followed tax rules

"Simply followed tax rules." That to me sounds uncannily like the definition for tax avoidance. What a bunch of f***ing hypocrites. Well I've got bad new for Clegg and Cable, while there are tax laws, there will be ways to legally minimise the amount you have to pay.

[Fred Bloggs]

"Simply followed tax rules." That to me sounds uncannily like the definition for tax avoidance. What a bunch of f***ing hypocrites. Well I've got bad new for Clegg and Cable, while there are tax laws, there will be ways to legally minimise the amount you have to pay.

What do you expect from Liberals? In fact, what do you expect from virtually any politician?

[VectraMan]

I have a feeling that when they simplify it, that is exactly what is going to happen, everyone pays NI, I don't think it'll be 20 grand more like 40 or 50 though. If they were going to abolish it they would have proclaimed it from the roof tops, the Tories at any rate, but I don't hear that, I hear "simplify" newspeak for raising tax, I would say.

If they just put NI on dividends, the whole problem would go away. It's the attempt to single out one particular type of person paid by dividends (i.e. contractors) whilst being seen to encourage little old ladies to invest that's the issue. Typical New Labour approach of introducing rules, then introducing exceptions to the rules because they didn't like the way some people were able to take advantage of those rules, then introducing exceptions to those exceptions because they didn't like the way some people were able to take advantage of those exceptions to the rules, etc.

[moorfield]

I think we might end up with either

(i) something like the Australian 80/20 system
or
(ii) the calcs are reversed so that income tax is applied to divis first, then salary - currently the other way round (which is why we all pay ourselves low salaries).

[Fred Bloggs]

I think we might end up with either

(i) something like the Australian 80/20 system
or
(ii) the calcs are reversed so that income tax is applied to divis first, then salary - currently the other way round (which is why we all pay ourselves low salaries).

I agree, it is what I fear most. It will end contracting as we know it, as I understand as has happened in Oz under those rules.

[Saddo]

I agree, it is what I fear most. It will end contracting as we know it, as I understand as has happened in Oz under those rules.

Well, it will probably hurt whatever they do. But at least the certainty will be there (we hope!). So long as it applies fairly to everyone fine. But I'll bet these bar stewards figure out a form of weasel words to ensure them and their mates will have a get-out clause.

Look on the bright side - if they take away (say) 20% of your income then the end result will be that rates will go up accordingly. Like everything, there is no free lunch.

[RockTheBoat]

Top notch journalism

mwahahahahahaha

Tax avoiders face 'ruthless' clampdown :: Contractor UK

well done CUK

take the rhetoric of a LibDem speech and then get the opinion of someone who runs a contractor umbrella company (i.e. someone with no vested interest in promoting his own position..... NOT).

Really CUK, please try a little harder next time