Elizabeth Eyre

Chartered Accountants Malvern

  • E-mail
  • LinkedIn
Tel: 01684 214 900
  • Home
  • About
    • Testimonials
  • Services
    • Cloud Accounting
    • Accountancy Services
    • Accounting Services
    • Transaction Services
    • Tax Protection Cover
  • News
  • Recruitment
  • Contact Us
    • GDPR Privacy Statement
    • Linkedin

Where do you draw the line with tax avoidance?

September 28, 2014 by Elizabeth Eyre

Did you watch Eye Spy on Channel 4 last night?  It challenges our moral compass, and raises some important questions.   It shows a banker and a builder saying the same thing and asks whether it’s more objectionable for one or the other to hide money from the tax man.

The press have lambasted large Corporations for avoiding UK Corporation Tax, and last night it was the turn of the NHS who have avoided VAT.  So “is everyone doing it?”

I’m sure we all know of people who have paid cash for something, and it “probably” won’t be declared to the tax man.  I am sure this country loses huge amounts to the black economy, but I’m not going to solve this in a blog.

I didn’t give tax avoidance much thought when I was “employed” because my PAYE and National Insurance disappeared before I received my pay.  Once I started my own business I thought much more about how to reduce my personal tax bill and even more importantly looking for ways to help my clients.

A personal Limited Company is essentially a way of avoiding tax, because the majority of pay is taken as dividends rather than salary – but this is absolutely within the tax code and is perfectly legal.  Someone who is self-employed pays 9% National Insurance whereas an employee pays 12% (plus the employers’ contribution).  So is self-employment a way of reducing your liability to HMRC, or does it reflect that you work for yourself?

In the past tax evasion was bad, tax avoidance was clever.  Now they seem to be blurring the boundaries.  If you want help with your “tax planning” give us a call!!

Filed Under: news

advanced-certification-logo

'Best of the best'


Company Info

Elizabeth Eyre Limited, Company No. 6819621 Registered in England and Wales.
Registered Office 6 Bank Street, Malvern, WR14 2JN

VAT Registration Number 992 2243 11

Contact Us

Please call us or email via the details below. We are happy to meet at a time convenient for you.   Elizabeth Eyre Limited 6 Bank Street Malvern Worcestershire WR14 2JN Or, contact us directly: Tel: +44 (0) 1684 214900 Email: … Read More ...

Tax Protection Cover

Elizabeth Eyre Ltd provides all of its clients and customers Tax Protection Cover as part of the service. As an accountancy firm, we have seen an alarming increase in the number of tax investigations instigated by HMRC. It is not just big firms either. HMRC do have the right to investigate any … Read More ....

Copyright Elizabeth Eyre 2017