How to dodge your taxes
The government’s new 50% higher rate tax for those on more than £150,000 is one of its most popular policies. There is much more popular support for raising taxes – particularly on the rich – when the time is right to reduce the deficit than most commentators suggest.
The main argument that has been mounted against it is that it won’t raise much cash because people will avoid it. This normally seems to be made by people who do not want to pay it, rather than from some altruistic desire to improve public policy making.
The right response is to close the loopholes that allow this. And if you want to find out how some of these work today’s Sunday Times provides a concise and helpful guide in today’s Greed, oops I mean Money, section.
The trick is to set up as a company, and use this to change income into capital gains, and use the allowances of other family members who don’t pay income tax.