Tax avoidance

One Rule for Most of Us...

Years ago, it was very common for well-paid senior managers to set up limited companies. The company which previously employed them then contracted for their services through the new company. This arrangement saved the individuals quite a lot of income tax. To put it another way, it deprived the government of revenue which meant that all the other income tax payers had to pay more to make up for it. For obvious reasons, the tax authorities clamped down on this.

It now appears (see the Guardian report) that many senior civil servants (but they are not officially civil servants) have been doing this for years. Why has HMRC not been investigating these arrangements? I would be very surprised if they were all legal and above board.

There seems to be one law for the rich (i.e. senior civil servants – whatever they choose to call themselves) and another for the poor mugs who actually pay their wages.

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