No it isn’t.
Tax avoidance is what a good accountant should be doing, helping you to pay less tax legitimately.
Like tax mitigation.
Tax evasion is the one to avoid like the plague.
So which is your accountant helping you with?
Hopefully its avoidance or mitigation. If its none of the above, the likelihood is you’re paying too much tax. Most of us don’t like paying more tax than we need to so it makes sense to use an accountant who will take time to understand you and your business and recommend an approach which fits with your circumstances and attitude to risk.
The approach taken will very much depend on your attitude to risk. The high profile tax avoidance schemes which have been in the press over the last few weeks will not appeal to individuals and business owners who favour a cautious approach.
If you operate your business as a sole trader you may want to consider changing to a partnership, especially if your partner is not currently working.
Perhaps your business has grown over a period of time and has build a strong brand as well as asset value. In which case changing from sole trader to limited company has a number of tax and cash flow benefits.
So, are you paying too much tax? It may be worth speaking to an accountant to find out. If you decide to see an accountant the first meeting should be free and he or she will either confirm you’re not paying too much tax or will help identify real tax savings.
So, why wait? Pick up the phone or send an e-mail and set the ball rolling to see if an accountant can help you pay less tax – legitimately.
