Sloppy tax rules hit Shropshire businesses hard says financial planner
Shropshire business people have the cards stacked against them when it comes to tax, and the unfair system needs changing.
That’s the claim from Robin Melley, a chartered financial planner who runs Matrix Capital, near Bridgnorth, who has hit out at the Government’s call for HMRC to “name and shame” anyone promoting tax avoidance schemes.
“Where do you draw the line between what is acceptable tax planning and what is morally unacceptable tax avoidance?
“The Government says scheme promoters are ‘running rings around’ HMRC, but this is because the legislation on tax needs sorting out. You can’t blame ordinary business people for using the law as it stands to pay only the amount of tax that the law requires them to pay.”
But Robin said naming and shaming people for using the tax laws the Government had created in the first place was grossly unfair and totally irresponsible.
“If people are stepping outside the law to evade tax, then the courts will decide and if convicted, the culprits should be named then but not before. Surely the Government would be better off concentrating on closing all the so-called loopholes or, better still, simplifying the whole tax system so that it is fair.”
Robin said every tax payer over the centuries had contributed to the creation of roads, rail networks and town centres, enabling companies to do business and create profits in the UK.
“And so yes, it is unfair that international companies can come over here, make profits and then move their profits around the world so that they pay little or no corporation tax in the UK. But this is a direct result of the dubious tax legislation in this country, and the unfairness of the system we have in place.
“Many of my clients are people who run small businesses who have risked a lot and made countless sacrifices to create a successful business and enjoy a better lifestyle in their later years.
“But the cards are stacked against them with tax – with income tax on directors’ salaries at up to 60 per cent; 13.8 per cent National Insurance contributions on every employee’s salary; Corporation Tax; VAT at 20 per cent; and Inheritance Tax on their estate at 40 per cent, what chance do they have?
“The legislation is sloppy and needs changing in order to create fairness and encourage entrepreneurship and growth in the UK.”
