robbo99.:
Rjan:
…
Like I said you are not backing your posts up with facts only your own speculation. Re: interest added means tax evasion has taken place is completey wrong. As I have posted, MSC legislation a tax avoidance scheme landed participants with interest charges, going back upto 5 years on the outstanding monies owing to HMRC. No tax evasion was ever levelled at anyone.
What exactly do you want me to back up? That a failed “tax avoidance scheme” is in fact tax evasion?
As this article says, the taxman scarcely acknowledges the difference: jolliffecork.co.uk/blog-pos … difference
The key difference is that avoidance is lawful and evasion is not. If HMRC challenges your treatment of your tax affairs, and you are forced to revise it and pay more tax, then that is an instance of evasion because the original treatment was not lawful. That’s also why you may have to pay a penalty.
Tax Avoidance is not illegal, aggressive tax avoidance is also not illegal but government maintain it flies in the face of what tax laws were intended to be. Your take on what determines tax evasion is completely wrong. Once again tax avoidance legal, tax evasion illegal.
Yes, agreed absolutely. But when the taxman reverses your “avoidance” scheme and forces you to pay a penalty, that is because your scheme was contrary to the law governing tax matters. And being illegal, we agree that it is tax evasion.
Of course companies conspiring with others to pay next to no tax is illegal, ie tax evasion, conspiring being the important word. As of now IR35 rules affecting workers employment status comes under tax avoidance rules and is NOT tax evasion…simple as that.
An incorrect determination of status, and a failure to operate PAYE in accordance with the law, has always been tax evasion.
That in some instances the penalties are not severe, or even that the taxman may just allow you to pay the right amount of tax, doesn’t establish that a category of wrongdoing exists which is not tax evasion. It is simply how the taxman chooses to manage the problem of tax evasion, as well as being relatively fair to those who make small errors.
What happens after April 6 is anybody’s guess, I don’t own a crystal ball.
The point I am making about the presenters is they were both doing similar jobs, ie presenting TV shows, both were accused of tax avoidance through IR35 rules, one a multi millionaire and one not a multi millionaire, irrespective of how big a star Kelly is makes a mockery of the IR35 legislation.
Not really, because it has nothing to do with the job you do, the question is what relationship the parties have entered into. The two standard cases are that of master and servant, or businessman and client. If memory serves, Kelly contended that she was the businesswoman in the relationship, and that the studio was either her supplier (from whom she was renting studio or screen time) or her client (to whom she was supplying a broadcast production).
Traditionally there was also a third category of “officer” and similar, consisting of those whose who were not in business independently (and might in fact be dedicated to a single role in an organisation, and be obviously working for it in exchange for a salary or other remuneration), but who enjoyed total autonomy over their participation, and over whom the organisation (or its other members) had no authority. Partners in general partnerships, company directors and company secretaries, and senior professionals on an equal class footing to the owners.
I think salaried offices have come under PAYE from the start, so it wouldn’t have helped Kelly to argue that angle, but again she is such a luminary of daytime broadcasting that it is quite credible to think that she meets studio executives on an equal (or even greater) footing, and her own remuneration reflects that. The arrangement, according to the court in that case, is not that of Kelly being a servant to the studio as master.
Whereas the ordinary driver never meets even the smallest haulage owner on equal terms (and again remuneration reflects that).