The Hypocracy Of Government

Don’t even try to claim expenses that you’re not 100% sure about, put more money away for your pensions, don’t even think about using Offshores! All messages preached by a UK government that which is becoming more and more apparent is rotten to the core.

We’ll audit your expenses to the nth degree but it’s absolutely fine for us to order a £10,000 kitchen for our SECOND home and expect YOU to pay for it. Its okay for US to ask YOU to put more of your income aside for personal pensions yet the majority of US won’t need to bother thanks to our index linked non contributory final salary pension schemes. Don’t go offshore to limit your tax burden but also please don’t ask how many of US have investments in offshore companies and funds. We don’t mind asking YOU to pay more tax where as we as people paid out of the tax pot will always have a negative effect on the tax balance, after all these new kitchens and plasma TV’s for our second homes won’t pay for themselves (oops, well actually they will).

In a budget designed to hit small business (a rise to 21%, soon to go up to 22%) and stop those who minimise tax burdens (the same people who don’t have sick pay, holidays, company pension schemes, gym memberships) this UK government has finally ousted itself as being hypocrites of the highest order. How can you possibly expect people who have to WORK FOR EVERY PENNY they earn to pay more in tax and accept constant penalisation for playing by the rules when you yourself are happy to live the life of riley on the tax payer’s gravy train? You earn more as a contractor because your work is of greater value, this is a foreign concept to those who are happy to live their whole lives shrouded in the public sector where holidays, pay rises, pensions and even flexi time are handed out with free abandon and with no concept of value.

With a government that seems overjoyed to tax people who dare to set up for themselves out of existence it is in your interest to take advantage of the many offshore jurisdictions that can offer much lower corporation tax and give you some value for money. By doing as the UK government wants do you really think you’re helping to make the NHS better, offering better education for your children? The reality is that you are in fact paying more taxes to allow people to furnish second homes, to give civil servants yet another pay rise (that you yourself haven’t had this year) and to pay for their family member to do frivolous work and be paid generously at your expense.

Offshore payment schemes are a viable to option to most high net worth UK contractors who fall outside of the IR35 legislation. Thanks to taxation agreements and treaties you are well within your rights to take advantage of such schemes. To not do so is to throw yourself on the sword for a government that will neither appreciate your contribution nor look after it with the due care and attention it deserves. Offshore has a bad name, it’s not deserved, thousands of contractors are being paid well within the law each month thanks to the offshore market. If you’re not taking advantage of the benefits of going offshore then you’re throwing money away.

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