HMRC firing off some "warning shots"

[LisaContractorUmbrella]

You mentioned morality - you little minx....

[BrilloPad]

Just because the law hasn't been fixed to plug a loop hole that people are using purposely and aggresively to do the wrong thing means that it is 'legal' but doesn't mean it is right.

If its legal then it is fine. HMRC need to move quickly to plug the loopholes.

[LisaContractorUmbrella]

And who are you to make that judgement? This is the same comment that LisaContractorUmbrella made, are you the same person?

No we're not the same person. Please refer to previous posts - I don't believe that morality can be applied to tax law but I don't believe in contrived, sham avoidance schemes because the individuals that use them may not be fully informed of the risks and then stand to lose far more than the tax advantage they initially gained with the providers invariably losing nothing

[BrilloPad]

No we're not the same person. Please refer to previous posts - I don't believe that morality can be applied to tax law but I don't believe in contrived, sham avoidance schemes because the individuals that use them may not be fully informed of the risks and then stand to lose far more than the tax advantage they initially gained with the providers invariably losing nothing

Sounds more and more like s58. But at the end of the day avoidance is legal.

When I joined the scheme(2006) EVERYONE I knew was using it. HMRC had been aware for 5 years and done nothing.

[formant]

If its legal then it is fine.

That logic doesn't really hold up anywhere else though. There's a lot of stuff that's not illegal but not at all fine/appropriate/whatever. In past jobs I've sacked loads of staff for exploiting software loopholes to their advantage. That was perfectly 'legal' but it was still wrong in that and any circumstance.

Agree about HRMC needing to fix it soon though. No other way to fight it. The warnings are a bit ... pointless though. And I wouldn't make this a moral issue either.

[BrilloPad]

That logic doesn't really hold up anywhere else though. There's a lot of stuff that's not illegal but not at all fine/appropriate/whatever.

And there is alot of stuff that is fine/appropriate/whatever that is illegal. But at the end of the day its the law that counts.

A contract of employment is not the same as finding someone guilty in a court. Do we need a new Magna Carta or something?

If HMRC were not such useless it would all be okay.

My ex-wife worked for HMRC - someone once wrote in asking for £16 back. Which he was owed. They decided he would not get it until he had spent at least that much in accountants' fees.

On her first day she was let loose on the computer system. Unsupervised. She set someone's tax owed to zero - they only found out when he complained! What a muppet! I have had tax cancelled once and I never complained......

[formant]

But at the end of the day its the law that counts.

Ultimately, yes, but in the meantime many will judge your actions whether they're legal or not. *shrug*
If it was ever 'right' or 'fine' they wouldn't be looking to fix it now.

I don't for one minute doubt HMRC's incompetence though. They're a government agency - what do we expect?

[captainham]

Unlike many of the posters here with vested interests (offshore schemes, umbrellas, accountants) I post here to help my fellow small business owners understand their obligations and work their way through the minefields of FUD (that is sometimes posted by the afore mentioned people with vested interests)

I try and not be too condescending to people who clearly have trouble with comprehension skills, are short of a few brain cells or clearly just like to make snide remarks. But sometimes I fail.

I love the way you are trying to make out that you post here to give others advice on what an appropriate setup for that individual might be, when in actual fact the only approach you advocate is an offshore scheme which, morality aside, is hardly described as risk-free in the current climate.

You carry on though, it makes me chuckle.

[LisaContractorUmbrella]

Ultimately, yes, but in the meantime many will judge your actions whether they're legal or not. *shrug*
If it was ever 'right' or 'fine' they wouldn't be looking to fix it now.

I don't for one minute doubt HMRC's incompetence though. They're a government agency - what do we expect?

Tax law is based on precedents i.e. what has happened in the past as well as the law that is on the statute books; HMR&C have every right to examine any tax scheme out there including ours (before anyone moans) BUT what they should not do is change the law in the present and apply it to the past

[northernladuk]

I don't for one minute doubt HMRC's incompetence though. They're a government agency - what do we expect?

If everyone paid their fair share of tax they could spend more money on their systems and processes so making everything fine and dandy? Simple!