JULY 2000 BROADSHEET - Tax Avoidence/Tax Evasion!
Our meeting in June was dedicated to the thorny problem of how far you could go in avoiding tax without ending up in the clink. According to our two Inland Revenue speakers they would not have been allowed to take part, let alone advise us on this issue ten years ago. Things have changed; a) by so many cunning ruses being successively legislated against and b) by the Inland Revenue appointing Business Support Teams to give non?critical advice to self?employed and small businesses. Our man in Cambridge, Martin Dobinson, (01223 442513) and our man in Huntingdon, John Burling, (01480 421623) came to prove it and are available to help you, without ever involving the Compliance wing of the Inland Revenue. Or so they promised.
They had to admit that our tax laws have become extremely complicated, as a result of the plugging of so many loop?holes, and spent some time on the latest; IR35, which is aimed to catch the person who becomes self?employed in order to carry on working full time for a company as a consultant, with the resultant tax benefits.
Oliver Plunkett, Tax Manager in Cambridge for Deloitte and Touche, introduced a third element in the equation; Tax Mitigation. This is making use of tax concessions such as Gift Aid. One of these, all small businesses should be looking at, was Short Life Assets, especially with the rapid depreciation of computers. Tax Avoidance included off?shore dealings and leasing cars in Germany to save VAT. Tax Evasion was characterised by the example of a restaurant offering half?price meals if paid in cash. For such behaviour there was no maximum penalty! Oliver can be reached on 01223 259567 or oliver.plunkett@deloitte.co.uk
Questions came thick and fast. We found out that there were 70,000 tax staff, that often the experts disagreed, 25% of companies got it wrong and you would get a £10 discount if you completed your self?assessment form via the internet. Try www.inlandrevenue.gov.uk
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