Tax avaidance

Lets be clear from the start here, tax evasion is the illegal one. That means not telling the taxman about money earned (legally or illegally).

Tax Avoidance simply means making sure that the taxman does not take more that he should. There was a famous law case (1922) where the ruling was that "the taxman is entitled to take his shovel full of your income, but you are entitled to make sure he uses the smallest shovel he is legally entitled to". In short, tax avoidance is no different to making sure you're not being overcharged when you go shopping.

There is a (well worn) saying that a good accountant is one who saves you tax - next time you see or talk to your accountant, ask them if they can suggest any simple way(s) to reduce tax; they should be able to come up with a few ideas without any need to charge you - If their eyes light up and they start talking meetings, just ask them how much because simple tax advice should be free and all part of customer service, not an excuse to give you a big bill.