Tax Planning

by M Tombs
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I don’t expect Jimmy Carr saw the funny side when Prime Minister David Cameron denounced as immoral his use of a tax avoidance scheme that reportedly cut his tax bill to just 1%. He wasn’t breaking the law and his use of the “K2” scheme had been fully disclosed to HMRC. But the tide of moral indignation swamped the cheeky chappy and forced him to admit a “terrible error of judgement.”

The scheme had been recommended by his financial advisor and that got me thinking about our role in advising clients on the best ways to manage their tax affairs.

If the tax system was straightforward, black and white, with no exceptions and no allowances, then life would be simple and I would probably be looking for a job! But the truth is that taxes and tax law have evolved into a complex system which presents individuals and businesses with an equally complex set of choices.

I am quite clear about our role in this. It is to advise our clients which tax mitigation strategies are available to them, making sure that they understand if any, although totally within the law in the opinion of the senior tax counsel who advise us, are likely to be strongly challenged by HMRC. We would be guilty of unprofessional behaviour if we did less. Only our clients can make a moral distinction between them.

We all agree that driving at 40 mph on the motorway causes less damage to the environment than driving at 70 mph. But as long as the law allows the higher speed, we can all decide, within the legal range, what we are comfortable with.

If you want to arrange a meeting to discuss how we can help you manage your tax affairs effectively but still remain within your comfort zone then fill in the contact form on www.tlaservices.co.uk or call 01905 21411.

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  • I haven’t the faintest idea what speed Benson drives the Roller or what he puts on the tax returns.