The Chancellor George Osborne has made it clear – if people hide money offshore “then we are coming after them”.
Worried you are on the radar?
Suddenly the advice that you may have received on the golf course could cost you. Classed as a “tax evader” you could face fines of 200% and with the tough economic backdrop – you wouldn’t be receiving much sympathy from the British public.
The good news is that you can take action, and your tax advice does not need to cost the earth – why not get in touch with our experts today?
You may have seen in the news that a well known saviour of radio has been “naïve”. That got me thinking – what does naïve mean?
Naïve – lack of experience, wisdom or judgement.
I am not going to comment on the case or consider the separate debate on “naïve -v- greed” that I have seen. I am going to focus on what naïve means in connection to your tax – is this a ticking time bomb for you?
Google is now central to everyday life – don’t know the answer? Google it. This morning I searched “contractor tax uk” – the results, although disappointing, came as no surprise to me:
- 100% compliant
- Take home 90% of your pay with us
These are attention grabbing headlines, but ask yourself what does 100% compliant mean?
Do you really think that HM Revenue & Customs have approved the scheme – or is it based on the grey areas of tax law that could be open to challenge.
Imagine 3 or 4 years down the line HMRC challenge the arrangement and you are asked for the remaining 30/40% tax saved for each year – could you afford that? The cost, plus interest and penalties could run to thousands of pounds - will the people who told you that it was 100% compliant pick up your tax bill?
Will they have the sleepless nights and stress?
Take a minute
Do you fully understand the risks of your tax arrangements? Look at the bigger picture and ask the questions, what is the price you would pay to sleep easy, and then question whether the risk is worth the reward.
I would recommend that contractors looking for clear tax planning advice read passed the headlines – some people can afford to be naïve – for others it could be the biggest mistake you make.
We are helping landlords make voluntary disclosure on undeclared letting income. If you have undeclared income it is important that you speak with a tax expert as soon as possible to minimise your potential interest and penalty charge.
Don’t put off any longer, our helpful team can guide you today.