Tax avoidance and tax evasion are two terms used to describe different types of behaviour related to paying taxes.
Tax avoidance refers to the legal practice of arranging one's financial affairs in a way that minimises the amount of taxes owed. It involves using legal tax deductions, credits, and exemptions to reduce one's tax liability. Tax avoidance is considered acceptable and legal by all, except the ignorant and politicians looking for a soundbite.
Tax evasion, on the other hand, is the illegal practice of not reporting all of one's income or assets to the tax authorities in order to evade paying taxes. Tax evasion involves intentionally misrepresenting or concealing information from the tax authorities to reduce or eliminate one's tax liability. Tax evasion is illegal and can result in criminal charges and penalties.
In summary, tax avoidance is legal and involves taking advantage of legal tax deductions and exemptions to minimise one's tax liability, while tax evasion is illegal and involves intentionally failing to report income or assets to evade paying taxes.
Tax Investigation Insurance
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Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.
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Tax Investigation Insurance is an insurance policy that will fully reimburse your accountant's (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.
A Solar Protect policy will enable your accountant (your tax return agent) to:
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- Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly
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