Did you ever wonder how a tax break could benefit the planet?
A topic that continues to run hot in the media with stories of tax avoidance by big business and ‘efficient tax planning’ via tax professionals through offshore means for politicians, pop stars to sports people.
As with most discussions it’s a complex matter with various points of view on the morality and legality of the structures used to reduce the tax payable by both individuals and corporates.
Our view is that as long as the right amount of tax is paid by the right people then the right thing is being done. As a financial advisor, yes we help individuals navigate the applicable tax rules but our goal is to ensure that no-one pays more tax than they legally, morally and ethically should both for them and society. It’s a tough gig.
Thinking about Tax
During the week a story caught my eye which got me thinking about tax. In fact it got me quite excited about tax and that’s not a line I ever thought I would write!
Let’s face it, we think of tax as burdensome.
However tax, in itself, need not be considered this way. A society taxed correctly can be a society that can do an awful lot of good.
If we all pay the right amount based on our circumstances then that money can be put to good cause. Similarly, tax relief can be used to encourage good behaviour.
And this is where I divert to electric cars.
The combustion engine is one of the greatest engineering inventions of our time. It is also potentially one of the most damaging to the environment. Here at Resolve we actively champion the use of public transport where possible but we admit to owning cars in the business on which we and our families rely.
That’s why this announcement got us excited….
As of April 2020, if you have a company car then you may be interested to know that HMRC are going to be dramatically increasing the savings you can make in relation to “benefit in kind tax”, if you convert to an all-electric vehicle.
So at Resolve, we have started to give thought to whether we can use this ourselves to support our company values of promoting sustainability in all that we do.
As they say, tax needn’t be taxing but perhaps they should add that a tax break could benefit the planet and help us all in the long run.