Britain’s wealthiest are not paying enough income tax

George Osborne recently expressed shock when he discovered that Britain’s wealthiest citizens are not paying their fair share of income tax.

Contractor accountants may wonder why it’s taken the government so long to realise what the rest of us have thought for some time!

The Chancellor commissioned a report from HMRC on the finances of multi-millionaires in the UK and discovered that a large proportion of our wealthiest citizens pay an average 10% income tax; half what the ordinary man in the street pays.

Unfortunately HMRC has not revealed the identities of these rich tax avoiders, but the report did show that some have employed such cunning tax avoidance tricks that they avoid income tax completely.

Mr Osborne acknowledged that these people are acting within the tax laws, but that it was not right for them to pay next to nothing in income tax. He confirmed that he was not allowed to know the identity of the wealthy tax avoiders, but the high net worth unit in the Revenue had given him anonymous examples and the government now intends to take action.

Although legal, aggressive tax avoidance schemes have saved 20 of the UK’s wealthiest individuals a total of £145 million every year in income tax.

The Chancellor is right! It isn’t fair that some people can get away without contributing their fair share. And when they are amongst the nation’s richest it seems even more unjust. The old adage the rich get richer and the poor get poorer seems to sum this situation up very well!

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