Community Fair Tax How to make sure your business is paying a fair amount of tax?

Fair Tax

Many accountants sell themselves on their tax planning credentials. It’s very common for small business owners to say that their accountants fees are covered by tax savings alone. But how do you know when you’ve gone too far?

This year many UK limited company directors have learned a downside of the low salary-high dividend mix recommended by most accountants. They’re not eligible for largest forms of coronavirus support from the government. Their employed peers had 80% of their pay covered by the furlough scheme and their self-employed peers received grants of up to 80% of their income.

As businesses grow it’s easy for good intentioned shareholders and directors to get sucked into other schemes. Little by little that can compound into the tax scandals that many celebrities and big businesses have found themselves in in recent years.

What if a trusted organisation, that’s not motivated to save you as much tax as possible, was looking out for you?

In 2018 Convivio became the first digital agency to be awarded the Fair Tax Mark. They aim to be a responsible company that makes a positive contribution to society. Here’s what they say in their Fair Tax Policy:

“We benefit from public services through the education and healthcare our staff receive, the protections of our security and legal system, transport infrastructure, a business and legal framework that enables us to operate, and simply by being in a society where our staff and families have their basic needs met and so can focus on higher economic contributions — and much, much more.

Therefore it is only right that we contribute back to society by paying a fair amount of tax.”

Convivio decided to go a step further than just having a policy, by submitting their accounts each year for accreditation by the Fair Tax Mark, an independent not-for-profit body which campaigns for companies to pay tax fairly.

In essence, a business with the Fair Tax Mark is certified as paying the right amount of tax in the right place at the right time and applying the gold standard of tax transparency.

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