{"id":13988,"date":"2012-02-02T18:09:32","date_gmt":"2012-02-02T18:09:32","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=13988"},"modified":"2012-02-02T18:09:32","modified_gmt":"2012-02-02T18:09:32","slug":"theres-one-rule-for-the-rich-and-another-for-everyone-else","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2012\/02\/02\/theres-one-rule-for-the-rich-and-another-for-everyone-else\/","title":{"rendered":"There&#8217;s one rule for the rich and another for everyone else"},"content":{"rendered":"<p>The <a href=\"http:\/\/www.guardian.co.uk\/politics\/2012\/feb\/02\/danny-alexander-ends-student-loan-tax-arrangement\" target=\"_blank\">furore about the use of a personal service company<\/a> to supply the services of the director of the Student Loan Company is appropriate.<\/p>\n<p>It is virtually impossible to see how this man should not have been on PAYE at source: he was very clearly in a master \/servant relationship under a\u00a0contract\u00a0for service and as such what was called Schedule E tax has to apply.<\/p>\n<p>But it didn't. He is likely to have taken part in three tax avoidance activities:<\/p>\n<p>a) He has transferred his income to a third party (the company) to save tax<\/p>\n<p>b) He has probably recategorised the income as\u00a0investment\u00a0income (a dividend from the company) to save the tax due on employment<\/p>\n<p>c) He may have deferred paying himself the income to delay paying tax.<\/p>\n<p>The IR35 rules should have stopped this. They did not.<\/p>\n<p>Graham Aaranson's\u00a0general anti-avoidance principle won't go anywhere near it.<\/p>\n<p>No normal employee would be allowed it.<\/p>\n<p>Sp the real question is, why was a boss? Why was a special arrangement made for a person on high income\u00a0unavailable\u00a0to the rest? What is this bias towards abuse being seen yet again in HMRC towards those with wealth?<\/p>\n<p>If HMRC did approve this then heads should roll, again. Not because it is a personal service company; they happen, but\u00a0because\u00a0this arrange should never have been\u00a0approved.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The furore about the use of a personal service company to supply the services of the director of the Student Loan Company is appropriate. It<br \/><a class=\"moretag\" href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2012\/02\/02\/theres-one-rule-for-the-rich-and-another-for-everyone-else\/\"><em> Read the full article&#8230;<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-13988","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/13988","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=13988"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/13988\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=13988"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=13988"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=13988"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}