There’s a new film out – “We’re Not Broke“. Its along the theme of large, multinational companies basically avoiding paying tax. This has become a pretty big issue and the big four Accountancy firms have been experiencing the wrath of vaguely interested politicians. The truth is that nothing illegal is being done… well, at least in theory, there is nothing “wrong” with arranging finances in a way that minimises tax payments. However, most of us probably question the morality of this. How is it that you and I pay more in income tax than many multi-national companies. Something does not sit right with this does it? or is it just me? If you have followed my blog, you will know that on occasion I get a little pithy and peeved by the way that there appears to be different sets of rules. I am not against people being rich – not at all, that’s not where I’m coming from – but I do think that if you want to operate and trade in Britain, you ought to pay British taxes and vice versa. It is only by paying taxes locally that Governments can eventually figure out that they need to set up better tax regimes, that aren’t based on envy, but on sensible measures. At the moment we have a daft tax system, where middle income (£20,000-£1m – yes that wide) are the ones being squeezed for more. A single rate of tax would, in my opinion be far more sensible and allow financial planners to concentrate of helping people plan their finances, not constantly seek new ways to avoid tax. Tax will continue to feel “unfair” until it is fairly charged to everyone.

Dominic Thomas: Solomons IFA