Tax laws Save your sympathy for the Doms – MoneyWeek – 365在线体育投注官网_365bet收不到邮箱_bet356哪个才是真网址

Thewaythatthepresshavesupportedallfreeloadershasbeenstunninglyirritating。

ButtheworstthingaboutthecoverageisthatithasmeantthatoneBudgetchangewhichwillseriouslyhurtgenuineentrepreneurs–andwhichweshouldreallybeprotestingabouthasbeenallbutignored。

Atthemoment,manyfamilybusinessesuseataxplanningmethodknownas‘incomeshifting’,wherebytheypayoutsalariestofamilymembersinsuchawayastotakeadvantageoftheirfamily’staxallowances。

ButHMRevenueandCustomsdoesn’tapprove。

Backin2004,itdemandedahugesuminbacktaxesfromGeoffandDianaJones,ownersofasmallITfirminSussex,arguingthatDiana’ssalarydidnotreflecthercontributiontothebusiness,andthereforeshouldhavebeentaxedasMrJones’sincome,atahigherrate。

ThecasewenttotheHouseofLords,andeventuallyendedinvictoryfortheJoneseslastyear。

SotheTreasury–whichhatestobethwartedhaschangedthelawtoexplicitlyforbidincomeshifting。

Therulesaffectallbusinesses,butwilldisproportionatelyaffectsmallcompanies,whichwillhavetostartkeepingdetailedrecordstoprovethecontributioneveryonemakestothebusiness。

Thisiswrong。

IftheTreasuryishappytoindulgethenon-doms,whysoeagertostripsuchaminortaxadvantagefromsmallbusinesspeople?

Thesepeopletakegenuineriskstosetuptheirbusinesses,oftensecuringstart-uploansagainsttheirownhomes。

Theyarebuildinglocalbusinesses,whichcan’trelocateatthedropofahatifchangestothetaxlawsupsetthem。

ThisofcourseiswhytheTreasuryconsidersthemaprimetarget–butwithrecessionlooming,theGovernmentshouldsurelybelookingtonurturelocalemployers,notcrushthem。

FirstpublishedinTheEveningStandard4/3/08