It's hard to know for sure. In Brixham, South Devon, most trades seem to prefer cash in hand, or a cheque written out to someone they owe money too. Do HMRC record that? Limited companies with one employee can pay profit out as dividends, attracting less tax. Sometimes its reasonable, sometimes not. Paying a shell company for the right to use a logo is fraud in principle IMO, but sadly legal. I'm sure the EU recently ruled against one company doing that.davedotco said:I was reading up on this yesterday, HMCE seem pretty hot, claiming over 90% of due taxes actually being collected but this does not tell us the amounts being legally avoided.jonathanRD said:Schiit! - yes easily done when you are not concentrating *blush*jjbomber said:
My cynical mind still maintains that the laws are deliberately complex to allow certain people or organisations to avoid tax with the governments blessing whilst others less fortunate are persued mercilessly.
I'll get the tinfoil...
Then there is legally reducing tax by means of pension contributions, ISA's and offsetting Buy To Let mortgage interest payments against tax. Should someone be allowed to pay £40,000 including tax relief per year into a pension?
Complex tax laws are good for expensive accountants.