Enhancements to the Enterprise Investment Scheme (EIS) is one of the most useful policies introduced in the 2011 Budget – for business owners and tax payers looking to shelter their income from the current 50% tax rate. In addition to the increase in income tax relief from 20 per cent to 30 per cent making it more valuable to higher rate tax payers, access to the EIS scheme has also been widened.
If you’re a Sunday Times reader, you could not fail to notice the article in January about footballers and their tax affairs. This highlighted how many footballers have been avoiding the 50% tax rate by using image rights companies into which the majority of their earnings are paid and then using their director’s loan account to withdraw income. Apparently, it is possible to pay a rate of just 2% by following this strategy. We wish it were that straightforward!
Continue 3 Comments February 8, 2011
Tax has become very politically motivated, perhaps too much so. Policies are introduced which are ill-researched and potentially damaging. What can be done about this? Should an all-party committee be established to restore political independence to tax policy making? What options exist?
Continue Leave a Comment January 4, 2010
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