| AIMS Update 2012
What is tax avoidance ?
Tax avoidance has suddenly become a big issue in the tabloids. What is tax avoidance? When does tax planning become tax avoidance? Clearly if you get it wrong it is no laughing matter as Jimmy Carr has discovered. The truth is we don't know the answer. Is a specially set up 'trust fund' tax avoidance? If this is the case then many of our political leaders have a problem. Is a business investment with the sole purpose of tax reduction acceptable? Arguably not.
In any event most business people and entrepreneurs do not get involved in these schemes. Like most of our clients they are hardworking business people who are focused entirely on developing and operating their business. Yes, we all want to minimise our tax payments within the current rules but now that the line between tax minimisation and tax avoidance is so unclear, does that give people the right to hide in the grey area? I think at the end of the day we all know what tax avoidance is!
Positive economic statistics
We thought we would lift some spirits and share some positive statistics that may give you a reason to be optimistic.
'Total private sector employment increased by 205,000 to 23.382 million. This is the ninth consecutive quarterly increase in private sector employment and the largest since Q2 2010.'
'All retail sales values in May 2012 are estimated to have increased by 3.3 per cent compared with May 2011. Store price inflation has slowed to 0.9 per cent, its lowest annual rate since October 2009.'
'The price of fuel is currently at its lowest point since February 2011. Unleaded is currently selling at 132p/litre with Diesel currently at 138p/litre.
Pensions reform - a reminder
You may recall that new "automatic opt in" pension arrangements are coming in. Employers will have to set up a scheme with a conventional provider or with National Employment Savings Trust (known as 'NEST'). In essence employees will automatically be in the scheme and will have to take action to opt out.
"D day" is being phased in according to business size and the deadlines were put back last year. Businesses with fewer than 30 staff will now begin to be staged in between January 2016 (apart from some "guinea pigs" which will start in June 2015) and April 2017, instead of the previous timing (which would have started during 2014).
Although June 2015 seems a long time away we all know how time catches up with us. We will be keeping an eye on developments in this area so we can make sure that you are not caught out. |