Today’s Evening Standard has a surprising double page spread. Entitled “Never too young to avoid tax” it gives us helpful advice on how to reduce our tax bills through the use of a JISA.
To think it’s just days since the paper was condemning Ken Livingstone for (legally) reducing his own tax bill.
2 Comments
Is HMRC about to attack people who put their money in ISAs because it avoids tax on interest paid? Or prevent people putting money into pensions because it is put into the saving vehicle before income tax is paid? Bizarre!
HMRC seems to have forgotten that avoidance is where you look at the tax rules and minimise your tax exposure. It is perfectly legal. The alternative is giving the taxman gratuities if you think you have not given enough. (cf Tax evasion where you break the tax rules. That is illegal and wrong.)
I think you’re right about the difference between avoidance and evasion – I think the key thing is that the Evening Standard were criticising Livingstone for doing something (minimising the tax he owes through legal means) which they are also encouraging their readers to do.