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About In House Tax

This weblog is a news and views site for tax professionals within the UK and international in-house tax community.  You will find information about appointments and people moves in and around the in-house tax market, issues affecting the in-house tax professional, opinions on the state of the tax job market, updates on tax technology, and other general thoughts of the day.

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Location: St Albans, United Kingdom

This site has been developed by Simon Godley, who also runs the niche tax recruitment company Talentpool Selection . Simon spends a lot of his time placing tax specialists into FTSE companies, large in-bound groups and some professional services organisations. He also recruits and is well networked around the UK tax technology and VAT markets.

Tax News

Why do we pay tax?

Friday, 6 July 2012

By guest blogger Ian Nuttall

In case you hadn't heard, Jimmy Carr has been in the news recently when it was revealed that he used a Jersey based tax scheme known as K2 to pay as little as 1% tax on his £3.3m earnings.
It was all perfectly legal and had been confirmed with HMRC, but David Cameron attacked the comedian and called the tax avoidance scheme used by Carr "dodgy".
Anyway, it got me to thinking about how much tax I pay and it lead me to this survey by Money Saving Expert. At the time of this post, 56% of all people voting said that they would push their tax savings as far as possible, using legal loopholes like Jimmy Carr did.
Personally, I love paying my taxes and actually wish I could pay more. Here are just a few good reasons to pay as much tax as possible:
  • It's good for the economy. We're in a recession and banks are having their credit ratings cut left, right and centre. If we all paid a bit more tax, it could give the economy the boost it needs to get out of this dip.
  • It helps people. Our taxes always go to good use and help local communities, charities, unemployed workers and more. It's a great alternative to giving money to charity.
  • It sets a good example. If we all start paying as much tax as possible, it might be the incentive stars like Jimmy Carr, Gary Barlow and Wayne Rooney need to start paying their fair share as well.
  • It helps the government. By giving more money to HMRC, it helps the government out because they won't need to chase companies like Vodafone to pay their £6bn tax bill!
  • It's patriotic. Avoiding tax through legal loopholes is unpatriotic and does our country a disservice for all the benefits given to British residents - like healthcare, tax credits and political asylum.
  • It stops the rich leaving the country. If all normal, hardworking folk are paying more tax, it means that the rich people can pay a little less, which in turn stops them from taking their money out of the economy for a more tax-efficient location.
All in all, I think that by paying more tax it is a win-win for everybody. We get a government that invests our taxes into making sure the trains run on time, the schools provide an excellent education to our children, the streets are kept clean and the unemployed are able to survive until they can find a job.
With all this press, there are dozens of articles about tax avoidance and legal loopholes for reducing your taxes but I think the way forward is to utilise the 51% more accountants we have in the UK since Labour came into power and find ways that we can increase our tax liability for the greater good - the UK and global economy.
Whether or not you agree with the idea of paying more tax, I'd be interested to hear your thoughts.Tweet this article and share it on Facebook/Google+ using the buttons on the left and let's see whether we can make a real change in the way we perceive taxes.
Who knows, maybe this could also prevent the endless strikes by doctors, bus drivers and firemen because the government will be able to afford to lower their pension age, increase their salary and give them better retirement incomes. Once we've got all of that sorted, we can start looking towards paying more fuel tax and then we'll really see a boost in the economy!

This article is by Ian Nuttall from Debt Consolidation.  For more information, click through to his site here.

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posted by Simon Godley

1 Comments:

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7 September 2012 at 18:22  

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