Should MoneySavingExpert encourage tax avoidance?

From Jimmy Carr to Google, headlines about avoidance split the nation – some view it as a moral abhorrence, others legal self-protection. Yet recently I’ve even been shocked to see some on Twitter and Facebook point the finger at MSE for encouraging people to save into ISAs. 

First of all, let’s clear up some terminology. There are three different ways you can reduce paying the taxes that are due:

• Tax evasion. This is where through lying or deceit you pay less tax than you should. It is against the law and often punishable by a prison sentence.
• Tax avoidance. This is where you manipulate the tax system to find loopholes and techniques to pay less tax than you ordinarily would, and less than you’re supposed to – but within the law.
• Tax planning. Here you organise your finances in such a way as to take advantage of state-encouraged schemes which are designed to encourage you to act a certain way, with the incentive of paying less tax.

Of course, there are blurred edges between the three. Yet that shouldn’t take away from the fact that not all tax reducing is bad.

MoneySavingExpert’s tips are about tax planning

Putting money into an ISA is not avoidance.  The ISA is a scheme set up by the Government to encourage people to save or invest.  The incentive to do it is that the interest received isn’t taxed as it normally is. Where appropriate, I’d happily encourage those who can to do it (see Top Cash ISAs).

The reason this is done is that people having some savings is good for society as they have their own emergency funds if problems hit (too much saving though, while individually good, takes money out of the economy, hence why the amounts are limited).

Saying ISA saving is avoidance is akin to saying those people who earn under £9,000 avoid tax, because they don’t earn over the personal allowance (the amount you are allowed to earn tax-free each year – see the Income Tax Calculator). 

Nor are the following similar tax planning examples avoidance:

• Pensions – they allow you to invest tax-free to encourage you to put money aside for old age to take the burden off the state.
• Enterprise Investment Schemes (EIS) / Seed EIS – they give tax advantages for those investing in smaller companies/start-ups that may struggle to get funding elsewhere to help build enterprise.
• Charity donations – money can be given to charity from before-tax income so the charity receives more than you lose from your pay packet (see Tax-Efficient Charity Giving). Charity giving is encouraged as, again, it often takes the burden off the state.
• Uniform tax rebates – if you wash and launder your own work uniform there’s a tax allowance you can claim for doing so (see Uniform Tax Rebates) as this is seen as a legitimate cost of employment, so you shouldn’t be out of pocket.
• Childcare vouchers – this is a state scheme to ease the burden of childcare costs by allowing it to be paid for from gross income (see Childcare Vouchers).

Of course all schemes have the potential for abuse, crossing the line into avoidance or evasion. Yet in their vanilla sense, they’re all tax planning and people should be encouraged to take advantage.

Should MoneySavingExpert.com encourage tax avoidance?

This is a much trickier question. There is, of course, an argument that a site which shows people loopholes and tricks to pay less to big companies should do the same with tax.

Yet we don’t, never have and aren’t planning to change. Whether that’s because both I and the site have an underlying belief that tax, like it or not, is the cost of living in a civil society; that it’s beyond the scope of the site’s expertise; or that we believe even though we’re a private enterprise we have a public service remit, I’m not sure.

Ultimately, while MSE is here to try to financially help people right across society, it’s for governments to decide how much tax we pay, and individuals and the public to vote them out if we don’t like it.  

If individuals choose to sidestep this and avoid tax, then that is their decision, but I don’t believe it is fitting that MSE is a facilitator.

Of course some of the recent headlines about Google, Amazon and Starbucks do rub people who pay all their taxes up the wrong way. Especially as it gives these huge international corporates an unfair head start over UK-based, UK-serving enterprises. 

Yet that doesn’t mean everyone should flow to the lowest common denominator. You only need to look across to Greece to see the net effect of an inability to effectively collect taxes. 

Thoughts?

A poem of modern Britons – written in the strangest way

This poem came about by accident, and for me that makes it even more beautiful. On St George’s Day, I asked people on my Facebook page: "What are you doing today?" The unplanned result was a portrait of Britons from the mundane to the magnificent.

As I read it, I realised it was a poem and needed sharing. So I’ve randomly selected just 200 of the answers. Let me know if you think it’s poetry too.

Sign language interpreting a personal defence course
Meeting my NVQ assessor! You’re never too old to learn!
Chilling in Nepal with a large Adams ale!!
Am in Uganda… working with street kids
Off to a chocolate shop in France 
Collecting my wedding dress ready for my wedding on Saturday! 
Going to see our beautiful new granddaughter Pippa Mae
Celebrating as I have finally gotten a job after being made redundant 
Hopefully, giving birth! 
Researching if now my Mesothelioma is growing back for the 3rd time can I get a 4th turn at it – well you did ask!! 
Going to see our baby… 20week scan! 
Studying to pass biology to get to uni in September (I am 36)
Helping local zoo which suffered devastating fire last week.
Waiting to go into labour. Come on baby!!!
Running down my phone battery, still in my PJs, whilst wearing my medal from the London Marathon. 
Learning to swim… lesson 2… aged 62 
On Facebook trying not to do housework 
Packing presents for my quadruplets who will be 24 tomorrow!!
Yayyyy. Off to see my dentist he is yummy
Delivering puppies! My cocker spaniel is in labour xx
Looking for grass snakes basking in the sunshine
Trying to walk without saying ow after the marathon!
Going to see my grandson born in the early hours of this morning. What a great day to be born on and proud to be British 23.4.13
Happy St George’s day all x
Opening cards and presents – it’s my birthday x
Thinking about how lucky I am to have my 6 year old daughter after having survived cancer….(it’s her birthday today)
Farm trip with Reception class, baby animals and picnic – lovely
Trying to go into labour!
Visited Darling Harbour and Botanical Gardens, Sydney.
Second interview for a job I really want. Nervous!
Arranging St George’s Day activities for all my nanny’s (old folk ) in the nursing home I work in….
Day off so staying in my PJs all day.
Working with the homeless
As little as poss and paying credit card IN FULL!!!!!!!!
Hoping to go into labour at 4 days overdue
About to sing Verdi’s Requiem in Hong Kong.
Packing my hospital bag and relaxing on my maternity leave whilst I still can 
Teaching young people to be safe drivers!
Going to London. I won a trip on Orient Express
Having another wonderful day of retirement )
Celebrating St George’s Day and drinking English Ale.
Day at home with baby daughter making white chocolate cheesecake
Going on an Etihad Stadium Tour with my best mate Dave Henrys – you should like this Martin Lewis!!
Bikini top gardening 
Volunteering for my local blind society 
Off to Harry Potter studio tour near Watford 
I have to work but would love it to be a Bank Holiday seeing as it is St George’s Day (can’t believe this isn’t a national holiday) xx
Enjoying 2nd to last week of maternity leave with my Phoebe-pie
Enjoying my last week of maternity leave with my beautiful little girl.
Sitting on the ferry going to belfast.
Visiting Castle Dracula in Brasov, Transylvania!
Eating THREE yumyums!! Slurp of coffee to wash it down 
Sitting cuddling my sleeping 6 month old, hoping it’s helping his cold. Making the most of him whilst he’s little 
Emptying my house for a big move up north, exciting!!!
Looking at a blank sheet of paper
Sat in barbers having a small strip mohican and letting the peroxide cook it white 
Waiting for news. Boy… girl, future grandchild
Breastfeeding, housework, breastfeeding, housework, lunch, breastfeed, dinner, breastfeeding, tv, bed.
Doing day 4 of ’30 mins for 30 days’ hula hooping oddly enough.
Celebrating my 38th birthday and St. George’s day. Beautiful day!
Taking my daughter’s forgotten lunch into school again!
Taking mother in law for lunch – 2 courses £5:95 kerching 
Watching the sunset in Saigon sly deck bar
Looking after foster child who is very demanding n’ won’t go school.
Buddying someone on a long distance bus ride
Watching the London marathon in bed to see if I can spot myself! 
Digging up weeds ready to grow my own on my new allotment 
Making a huge Starfish mascot costume for a football club – it’s what I do daily!
Trying to build up a children’s cancer charity profile on FB (CCPAUK)
Buzzing after my first night as a volunteer for Debt Advice Charity, Crosslight
Looking after my 8 month old grandson who we’ve just taken on long term fostering….
Making autism awareness jewellery to raise money for Love Autism information page
Typing my final 5,000 words for my lead flashing dissertation!!!
Kids up, school run, Asda, change beds, drink coffee, tidy living room, pick up one, go park, pick up second, cook dinner, bath kids, dog training, bed!
Making a lovely seating plan for my wedding on Saturday!
Celebrating my birthday 
My 5 month old’s first swimming lesson  x
Playing Simpson’s Tapped Out. Very bored at work.
Handing out books as it’s World Book Night!
Discussing the Broadchurch finale
Cleaning bird poo off my WHITE T-shirt!
Looking after my 13 week old daughter!!
Second day off of maternity leave… 4 weeks to go until D Day… gonna be walking and rocking lots to try and get baby to turn around! X
Completing more job applications with a break for free coffee at Waitrose
Bought a red rose to wear. Off to a meeting in Banbury
Watching a friend shave her head for the Tuesday O Hara Fund :0) 
Growing a baby (am 33 weeks pregnant)
Preparing for a job interview!
Doing my family tree on Ancestry
Working at Spice Adventure Social Group planning our big weekend to Center Parcs in June
Sowing vegetable seeds that came free with a gardening magazine 
Loud music and spring clean cupboards!! Boring job done
Midwifery experience day for nursing degree! Cuddling babies!
Trying to get home in a car that sounds like a bag of spanners.
Cakes and sponges at college this afternoon.
Going to cuddle my brand new grandson 
Been for a steady 5k, then tidy house, pick the wee one up from nursery. Then a little Toys R Us shopping. 
Worming, poo-picking, grooming, shedding horses!!! Sunny days and chill 
Putting curtains back up after I’ve washed and ironed them, walking to pet shop for bugs for my bearded dragon and gecko, then walk to Aldi for bread and sweetcorn for my chickens
Doing some comping using the MoneySavingExpert Forum 
Working. Have a new diet and money plan from today 
Booking holiday vacation then off to buy a birthday present for a friend and an anniversary present for my daughter and son-in-law 
Painting on cake, I am a cake decorator, love it!
I will be sharing a brew with my best mate
I have been very busy having a lovely birthday !
Trying to convince myself that I really can grade more essays today 
Having a new back door fitted, using the PPI money
Revising, revising, revising, revising, revising, revising, revising, revising, revising, revising.
Researching where to dig a WW1 trench in Shropshire in preparation for next year
Sorting out a mortgage that Nationwide turned into a cluster…
Awaiting grandchild number five, due any minute now. We are sooo excited. Such a gorgeous day to be born on too. 
Trekking up and down the Ramon crater in the Negev Desert
Been to see a dog to adopt and we’re picking him up Saturday
Having a sort and a throw out, de-cluttering the house… 
Starting my new job with ‘ the Professionals on Ice’! So excited!!
Flying off to Tenerife 
Fighting Bedroom Tax on behalf of the 11,700 registered blind people who will either have to pay BT out of their DLA or move, and, aside from the obvious trauma of moving, if they move to a 1 bed flat without a garden they will lose their guide dog 
Cleaning an already spotless house while waiting to go into labour!!
Watching QI get recorded
Playing in the garden with my 3 year old 
Girly lunch with my friend, my treat for her birthday!
Visiting my midwife for the last time before bump arrives!
Bike riding 30 miles in the Lincolnshire country side in the sunshine
Sunbathing and having a cold beer in Goa, India.. heaven.x
Catching up on the last episode of Broadchurch while I make a crocheted blanket 
Baking cakes to raise money for Joshua’s Wish!
Procrastinating lol
Removing leg of pork (dinner) from dogs mouth
A spot of jungle clearance. Some call it gardening.
Enjoying the sun with my 15 week old twin boys 
Housework, jet washing my patio, quick shower, off to help with my local slimming world group
Taking disabled people to the gym this morning and cinema this evening – love my job
Packing for going to Vegas tomorrow with best mate. Yippee!!!!!!!!
Shopping, cleaning, paying bills – the life of a house husband!!!
Enjoying mummy snuggles with my six week old daughter Thomasina.
Welcoming my other half home from hospital after ten weeks with a huge smile!! x
Flying an aeroplane to Marrakech and back.
Sigh… facing another sunny day in Florida. Someone has to.
Cleaning and then off to work – teaching littl’uns to swim!
Helping the disabled and unprivileged cope with the Welfare Reforms
About to have lunch at Maria’s beach bar in the sunshine in Portugal 
Working my butt to make someone else rich
Sending samples and quality testing meals
Watching the mother of all storms in Bangalore
5 mile walk with friend, Weight Watchers, swimming with daughter 
Searching on the common for St George and his horse with 30 primary school children
Hoping to check how my honeybees survived this horrible winter. Should be warm enough to open them up.
Selling on eBay
Trying to get a mini bus to take some oldies to the coast
Off to do my bit in a charity shop. Volunteers rock
Crocheting a dolly’s dress!!!! via YouTube and struggling hehe
Waiting for this over cooked baby to arrive and planting some flowers in the sun! 
Getting my paintings ready for an exhibition tomorrow – yay!
Managing my money, planning my wedding, working on my PhD!
I am doing all the things I didn’t do yesterday 
Off to RCN conference in Liverpool, nurses rock!
Volunteering at my local primary school to teach French to P2 classes 
Being naughty
Biking up a mountain… Enjoying sunshine… Relaxing
Analysing data – making those numbers sing 
Paying off credit card before bill comes in!!!
Putting up balloons etc. for son’s 14th birthday.
Visiting a 91 year old relative to change gas/electric tariff.
Been Scarborough, now Newcastle, then Scarborough again… Train Guard life
Cleaning out chicken coop, taking dog for quick walk, and then meeting friends for lunch
Can’t believe I’m saying this but it’s my day off and I’m sat watching Jeremy Kyle!!!
Figuring out best way of raising a deposit for a house
Taking my VW Bug out for its first drive of the year… and it’s sunny 
Fighting through deep dark forests… slaying dragons… spreading pixie dust )) oh ok… am going to work in sainsbos…xx
Secured Green Deal Funding for our customers! Chuffed!!!
Designing a shed to save myself £700
Eating 99p sausage and chips, bought at George’s Tradition in Long Eaton, and it’s decked out in St George’s flags
Quarantining medical students between exams so they can’t tell each other the questions!!
Sitting on an invisible sofa until my new one comes 
Slaying a dragon, George style
Trying to get fit, just swam 31 lengths
First time at baby massage with my gorgeous son – hope he likes it!
Looking after twin grandsons whilst Mum has appointment in hospital
An Ann Summers managers’ lunch xx
Serving vintage style afternoon tea to lovely ladies who always wear hats!
Going to look at maternity wedding dresses with my lovely Mum
Going into bluebell wood with camera.
Decorating our house for the first time myself as we can’t afford to pay anyone… but actually appreciating doing it together!!
Learning to walk again 
Chillin’ after work, dreaming for a cold drink.
Writing a undergraduate PR campaign assignment on a subject/company I feel uncomfortable with 
Radiotherapy, shopping, cancer support group, then Irish dance class.
Buying properties to invest in my future, I’m on my 5th house 
Writing my website, stimulated by green tea and The Seahorses
Looking for a new events manager role
Podcasting for my iTunes show in London today and next few days
Went to Peppa Pig World with partner and son who both loved it!
Walking around Petworth Park with the dog x
Broken ankle elevated, waiting for children to come home.
Working my way through an audit, anticipating an alcoholic drink!
Waiting for Ross Auto to come and fix my wheelchair
Supporting my friend who’s shaving her head for Cancer Research.
1k run repeats, weight session, technique swim 
Looking after my 5 year old daughter as she has chicken pox – for the second time!!!!!! Argh!
Appointment with psychologist, topping up my vitamin D level, which will help my bone pain.
Reading all of the above comments… sad or what!!!!! X
Working. And happy I have a job