Monday 25 May 2009

Tax doesn't have to be taxing

So goes the HM Revenue and Customs slogan, anyway. And it certainly seems to be true for nine members of the government, including such heavyweights as Alastair Darling and Jacqui Smith, who have been claiming the cost of professional help in preparing their tax returns.

In what's now a time-honoured response, the nine MPs are asserting that this was in line with the letter and the spirit of the rules governing expenses. Oh, really? When I moved back to the UK from Canada, my company provided me with a tax preparation service. After a couple of years I realised (a) that the accountants weren't very good and (b) that the service was costing me serious money, as I was liable for tax on the deemed benefit. (I switched to using a software programme called Legatio Fast Tax, which I can heartily recommend, especially to Alastair and Jacqui).

Unlike me and unlike every other taxpayer, the MPs got their tax preparation advice tax free, thanks to the wheeze of putting it through on expenses. I suppose it's possible that this is within the letter of the rules -- heaven knows, there doesn't seem to be much that isn't -- but it's hard to see how it can be in the spirit of them.

You also have to wonder if it has occurred to Alastair Darling that if he thinks he needs help in getting his taxes right, then just possibly the system might have become the teeniest tiniest bit too complicated.

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