THE CRAZY BUSINESS OF UK TAXES

Consider this, regardless of whether you earn it, spend it, save it or inherit it - you will pay tax on it. 

Also consider that the average person works almost one third of the year just to pay their tax bill.  Every year.

In the UK the list of taxes seems never ending... Income Tax, National Insurance, Capital Gains Tax, VAT, Corporation Tax, Airport Taxes, ... to name only a few.  

One recent study even went so far as to demonstrate that out of every £100 earned that after 10% is taken in National Insurance and a further 22% is taken in Income Tax (Or a staggering 50%, following the recent Budget if you are a higher earner), that out of your £100 only £68 remains.  Not only that but the study went on to demonstrate that the average person spending their £68 in every hundred goes on to pay an average further £32 to the taxman.  Not unrealistic when you think of 17.5% for every high-street purchase or meal out, 35% of your well-earned drink and a staggering 85% of the money you spend on petrol all going to the tax man!

Therefore of the £100 earned, the average person has only approximately £36 in goods and services to show for all their hard toil, and only approximately £21 worth for those on a higher income. 

So, what can you do about it?

If you are one of those like me who thinks that the oppressive, burdensome business of taxation has got way out of hand, then take heart, because there are alternatives. 

Tax evasion is of course illegal, and of course in all cases you should take the appropriate professional advice, as there are still many legal ways to avoid giving everything to the tax man and protecting your assets, such as:

·         Consider the benefits of being self employed – it could cut your tax bill in half.

·         If you are planning to improve your home, there are certain tax breaks for building and improvements.

·         Alternatively you could seriously consider moving your nest egg abroad.

·         Consider the use of offshore companies and trusts.  Something that can be utilised as a company and as a private individual.

·         Consider the use of completely confidential offshore bank accounts.

But most importantly consider, the one day that you spend sorting out your money, could be the most profitable day you ever have!

Is it likely that the UK tax position will ever improve?

We could all well live in hope that the next government will improve the tax situation – but I bet it doesn’t!

And what is more, it seems likely that taxation is set to get even worse!  We already pay £11 per person to the irrational lunatics in Brussels, with experts suggesting that proposed tax ‘harmonisation’ will see inevitable increases in Income and Purchase taxes, making it likely that items presently exempt from taxes in the UK such as food, books and children’s clothes could increase over night, by up to 20%!

Of course we all accept that tax is a necessary evil, to support health and defence, but don’t you think it is about time we thought about protecting our assets and putting our family and business first?  After all, just look at the example of Geoffrey Robinson, MP for Coventry North West since 1976 and our ex-Paymaster General no less.  Who hit the headlines in November, when it was revealed that he had placed £12 million in an Offshore Trust just six days after the last election.  If avoiding paying tax is acceptable to a Paymaster General, then why should it not be acceptable to the rest of us?