28-07-13, 11:34 AM
It's a loophole that would be virtually impossible to close. A limited company is a legal entity and has the same status in law as a person. So if one limited company loans money to another, it's just the same as if I was to loan you some money, we are completely separate legal entities and there is no way that anyone could say that we aren't.
I'm not happy with the way tax works either and if there was a legal way of reducing what I pay I would. I had a good year last year with the day job. I got paid additional allowances due to the Olympics and was also recognised for doing a good job by getting a bonus. That put me very close to the 40% tax rate on what I was paid for the day job. I also had a very good year on a private contract but I'm only going to see 60% of what I was paid for that. Where's the justice in getting paid less for working bloody harder and doing a good job?
I'm not happy with the way tax works either and if there was a legal way of reducing what I pay I would. I had a good year last year with the day job. I got paid additional allowances due to the Olympics and was also recognised for doing a good job by getting a bonus. That put me very close to the 40% tax rate on what I was paid for the day job. I also had a very good year on a private contract but I'm only going to see 60% of what I was paid for that. Where's the justice in getting paid less for working bloody harder and doing a good job?