News
Government 'again working against income shifting'
Apr 30 2008
The treasury is again examining ways to reduce the practice of income shifting, according to ContractorCalculator.
Proposals to restrict the practice - where a couple in a small or family business split their income from the business between them in order to make the most of permitted tax allowances - were postponed for further consultation during the last budget.
Chief executive of ContractorCalculator Dave Chaplain describes regulating against income shifting 'discriminatory' and a 'deliberate attack on contractors'.
He says: 'Just because one partner earns more than another does not mean that one contributes nothing to the company.'
Before the last budget, in which proposals to halt income shifting were postponed, business groups such as the Federation of Small Businesses (FSB) campaigned against the regulations.
Simon Briault, spokesperson for the FSB, has pledged that the organisation will oppose 'tooth and nail' restrictions on income shifting.
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