GaryC wrote:BarryW
Let's say that this or the next government decides that the legal tax loopholes that you correctly pride yourself being an expert at, for offering your clients, are crippling this country's economy and decide that the only way to eradicate this problem, is to close down all business's like yours.
Would you simply shut the doors and hand them your keys and blow them a kiss?
Or would you fight tooth and nail, to save yours and your family's future?
Such a lot to say to this....
The premise is false.
1/ My job is as an independent financial adviser looking after client interests, part of which is ensuring they do not pay more tax than they legally have to and I have a duty of care imposed on me by the government through their appointed regulator to do just this. Most of my work relates to advising on investments including pensions and tax is a significant issue in that. What you think of as a tax loophole is tax planning, something that will always be with us and we are all entitled to do.
2/ My business is owned by me and is not a state run enterprise so the government (or regulator) cannot close me down unless I were to breach laws and regulations. This is something I am careful not to do. I am paid by my clients for delivering a service that they value and are willing to pay for, if they will not pay then I will close.
3/ It is impossible for any government to close all avenues of avoidance. That would suggest a level of horrifying power over our lives that would change the whole nature of the UK into a oppressive authoritarian state. Besides which many of what you call loopholes are specifically allowed and enabled by parliament. This is not what you refer to as a problem, unless that is you believe in the power over the State over our lives to such a degree in which we do not own any rights to our private property and our income/money is just that.
Something I was reminded about yesterday at a CPD seminar. This is about a wide variety of ways we can use trusts to help save or eliminate inheritance tax liabilities. These are long, well established mechanisms that are not threatened in any way by the new GAAR laws. Dennis Healy, Labour Chancellor of the Exchequer, he who said he would tax the rich until the pips squeak - you may recall him, actually said that Inheritance Tax is a voluntary tax - indeed it is and saving people from suffering that is a job required of me by both clients and the regulator.
4/ In my industry we have had to learn to be flexible, to move with the times and to change how we work and our processes accordingly. In January a massive change occured in my industry, one well overdue and one that brought the whole industry into line with the basic principals on which I established my business model in 2004. I always make sure I am ahead of developments and as long as I am able to respond to my clients and fulfill their needs in a way that they are happy to pay for then I have no concerns such as you raise.
If, however, I were not able to do so then I would go out of business - simple. It is something that everyone who runs a business has to contend with.
Contrast that to the mines and miners.
Often opposing the closure of mines that were no longer viable.
Going on strike a the drop of a hat without any concerns about the impact it would have on the profitability of their mine and their employer.
Being kept going with subsidy in the face of cheaper foreign competition.
Restrictive trade practices that added to costs.
These are the issues there and there is no comparison. If I lose profitability, if I fail to adapt, if I fail to satisfy my client needs then I would go out of business - simple. These are the risks I take and accept as the miners should have accepred greater responsibility for the state of their industry and should not have driven it into the ground with absurd pay demands and failing to adapt to new practises and ways of working.