weegie01 wrote: ↑Wed Nov 20, 2024 2:12 pm
I do genuinely believe this is poor legislation, but I also believe there is wholesale abuse of the applicable tax regimes. As an example, one of our neighbours just been telling us how he has bought 10 sheep for his 60 acres so he can continue to claim it is a farm. Despite his wife's herd (literally) of horses etc using most of the grazing. He was also gloating about putting his new Defender through the 'farm' as a commercial vehicle even though it is a passenger Defender not a commercial, but no one will ever check.
This kind of blatant abuse is endemic and really needs looked at, but HMRC just lack the footsoldiers to do so.
I only know of one person who has been investigated by HMRC, and he took the piss beyond belief - written off directors loans and all sorts. HMRC don't have capacity to go after all but the most egregious so he was doing this for years.
It's nowhere near the same scale and in a different discipline, but my accountant has been very clear and very consistent over what they'll accept as a business expense for my one-man-band business - to the point of enquiring about whether old phones were disposed of or were sold on.
I'm happy to go on their advice as they know the regs better than I (or else why would I employ them), but more importantly in relation to avoidance they're a third party with a duty to ensure my tax liabilities are met - and they can't hide behind ignorance
Most business of any size beyond sole trader will use an accountant, and it's there that the first line of defence should exist, and there should be swingeing penalties for those who bend the standards. I'd hope it would be less work for the taxman to audit the accountants and make these accountants actually accountable with a stiff enough penalty to ensure they won't prepare or submit returns that are not bang on the legislation. The chap I know who was investigated works in financial services so is relatively savvy, but even he would have had an accountant who - if not actively promoting the dodges - was happy to submit his business returns
I get loads of adverts for accountants who promise that they can get me 90% take-home of my invoiced income, there's no way on earth they can do that without some subterfuge. They need to be stamped down on.