Reply to: Another attack on 'schemes'

[subsea]

What's wrong with avoidance

Why do HMRC word items stating they are trying to stop 'tax avoidance'. Surely avoidance can be as simple as putting your savings in an ISA rather than leaving them in a regular saving account. Everyone has the right to minimise the tax they pay in a legitimate manner

[LisaContractorUmbrella]

Shouldn't that be "Who provides a solution that stops your country working?"

LOL

[Fred Bloggs]

The simple reason is that all trusts to be effective have to be offshore, the trust that owns the stately home will be probably IOM or a Channel Islands trust. UK law recognises trusts but the trust needs to be offshore to work.

Thanks for the clarification, it is appreciated.

[geoff from contracta IOM]

I appreciate you are not "hiding", you know that I know that. I also actually appreciate your input here. But, I really want to know, is that if what you do is fully 100% HRMC compliant, then why you have to operate out of an off shore tax haven rather than onshore here in the UK.

The simple reason is that all trusts to be effective have to be offshore, the trust that owns the stately home will be probably IOM or a Channel Islands trust. UK law recognises trusts but the trust needs to be offshore to work.

[Alan @ BroomeAffinity]

» Who provides a solution for your working country?

Shouldn't that be "Who provides a solution that stops your country working?"

[Fred Bloggs]

I wasn't aware we were hiding anywhere, i'm not doing a very good job of hiding by being on here then I guess

I appreciate you are not "hiding", you know that I know that. I also actually appreciate your input here. But, I really want to know, is that if what you do is fully 100% HRMC compliant, then why you have to operate out of an off shore tax haven rather than onshore here in the UK.

[LisaContractorUmbrella]

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[geoff from contracta IOM]

I think many people would take the risk to be paid any way other than through PAYE if HMR&C didn't keep moving the goal posts and if a fight with them wasn't so expensive. We have all seen from the BN66 thread that these things go on for years and years and wreck the lives of everyone concerned. As I understand it legal fees cannot be reclaimed even if you win your case and, if you lose, you then face a huge bill for tax plus interest and possibly plus penalties. I think all of us on here would feel happier if legislation that was handed down was completely clear and that the cases HMR&C chose to fight were based on existing case law rather than their own opinions. Unfortunately, the Exchequer is so desperately short of funds measures taken to stop avoidance (which as far as I know is still actually legal) are becoming more and more extreme. Just MHO (and sorry going a bit DM) but I think the main result of all this will be mass emigration.

Well said Lisa, I think we would all agree that HMRC need to get their house in order and restore the "connection " to taxpayers

[sal626]

I think many people would take the risk to be paid any way other than through PAYE if HMR&C didn't keep moving the goal posts and if a fight with them wasn't so expensive. We have all seen from the BN66 thread that these things go on for years and years and wreck the lives of everyone concerned. As I understand it legal fees cannot be reclaimed even if you win your case and, if you lose, you then face a huge bill for tax plus interest and possibly plus penalties. I think all of us on here would feel happier if legislation that was handed down was completely clear and that the cases HMR&C chose to fight were based on existing case law rather than their own opinions. Unfortunately, the Exchequer is so desperately short of funds measures taken to stop avoidance (which as far as I know is still actually legal) are becoming more and more extreme. Just MHO (and sorry going a bit DM) but I think the main result of all this will be mass emigration.

A good balanced post Lisa.....and yes, I am already looking at various options to emigrate.

[LisaContractorUmbrella]

Some random thoughts.

I'm sure most people think tax avoidance is wrong. However, the vast majority are on PAYE and don't have an option. I wonder how many would do it if they could?

Where I live, cash in hand is still a welcome method of payment.

Speeding is wrong but many people do it even though it kills. Do they do it because they think it's acceptable or because they can get away with it?

It's hard to resist the selfish gene.

I think many people would take the risk to be paid any way other than through PAYE if HMR&C didn't keep moving the goal posts and if a fight with them wasn't so expensive. We have all seen from the BN66 thread that these things go on for years and years and wreck the lives of everyone concerned. As I understand it legal fees cannot be reclaimed even if you win your case and, if you lose, you then face a huge bill for tax plus interest and possibly plus penalties. I think all of us on here would feel happier if legislation that was handed down was completely clear and that the cases HMR&C chose to fight were based on existing case law rather than their own opinions. Unfortunately, the Exchequer is so desperately short of funds measures taken to stop avoidance (which as far as I know is still actually legal) are becoming more and more extreme. Just MHO (and sorry going a bit DM) but I think the main result of all this will be mass emigration.

[Alan @ BroomeAffinity]

I take it you work through an umbrella then and not a ltd co so that you pay full tax and NI on everything you earn ? If you don't what exactly is the difference ? Individuals have a obligation to pay the tax that is due nothing more. If we follow your argument to its logical conclusion we should all just work for the state and see if we can prove Orwell wrong.

I'm an accountant but, yes, my clients operate through a structure whereby they earn and pay tax in the UK. Often its only 20% of their income but that's world away from paying ZERO tax. And you yourself are aware of the risks, otherwise the Disclaimer on your website wouldn't be there.

[DonkeyRhubarb]

Some random thoughts.

I'm sure most people think tax avoidance is wrong. However, the vast majority are on PAYE and don't have an option. I wonder how many would do it if they could?

Where I live, cash in hand is still a welcome method of payment.

Speeding is wrong but many people do it even though it kills. Do they do it because they think it's acceptable or because they can get away with it?

It's hard to resist the selfish gene.

[geoff from contracta IOM]

And how can you possibly justify not paying tax because of the benefits culture?

I take it you work through an umbrella then and not a ltd co so that you pay full tax and NI on everything you earn ? If you don't what exactly is the difference ? Individuals have a obligation to pay the tax that is due nothing more. If we follow your argument to its logical conclusion we should all just work for the state and see if we can prove Orwell wrong.

[geoff from contracta IOM]

If your clients pay all the tax that is due on their income, why does the scheme have to hide in the IoM?

I wasn't aware we were hiding anywhere, i'm not doing a very good job of hiding by being on here then I guess

[Alan @ BroomeAffinity]

And how can you possibly justify not paying tax because of the benefits culture?