Tax a necessary evil
Tax collection dates back to the dawn of civilisation. Whilst we as voters have more say over how the revenue collected is spent, in many ways we haven’t come that far. Taxpayers still question the validity of foreign military campaigns and opinion is divided about whether tax revenue should fund the royal family.
Whether you like or dislike paying tax – it is undoubtedly a necessary part of civilised society. The basic mechanics of everyday life would crumble if hospitals, schools and policing were left underfunded.
Tax in context
When building a financial plan it is vital that the effect of any given strategy pays heed to any tax consequences that may arise. Whilst tax shouldn’t affect the stated objective or drive contract selection, its impact will have a bearing on the net returns enjoyed.
Avoidance v. Evasion
No one is expected to pay more than their fair share of tax. It is perfectly legal to make use of your various allowances and to examine how legislation should apply to you to reduce taxes due to a minimum. It is normally straightforward to differentiate between tax avoidance and tax evasion, the former the tax authorities accept, for the latter they will quite rightly prosecute wrongdoers.