Failure to go limited 'costs £4.2bn in tax'

[AtW]

Each British taxpayer is set to gift HM Revenue & Customs an unnecessary £421 this year – rising to an average of £1,600 if they run a business but fail to incorporate it as a limited company.



Source: Failure to go limited 'costs £4.2bn in tax' :: Contractor UK

HMRC would have to make up for loss of tax somehow and what would it do if everybody just went Ltd route?

[bobspud]

Sorry I don't understand the press release...

Are they trying to drum up support for their website by saying everyone should be using PSC's to avoid tax or are they saying that there are loads of sole traders with the wrong type of company? It seems rather daft to me to encourage someone to open a company when will cost them a grand a year to file a set of accounts for it, when the saving is only £420 per person...

[Doggy Styles]

Sorry I don't understand the press release...

Are they trying to drum up support for their website by saying everyone should be using PSC's to avoid tax or are they saying that there are loads of sole traders with the wrong type of company? It seems rather daft to me to encourage someone to open a company when will cost them a grand a year to file a set of accounts for it, when the saving is only £420 per person...

I thought AtW said the saving was £4.2 billion per person?