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Philip Hammond Suggests Britain Could Become “Tax Haven”

Here is something we all thought would never be said by a member of the government, the Chancellor Philip Hammond said Britain could become a tax haven.

Just imagine all those multi-millionaires and billionaires leaving Monte Carlo and arriving in Dover on their super yachts.

So why the sudden low tax comments from Philip Hammond you might be wondering? Well, it all comes at a time when Britain is trying to negotiate an exit from Europe, and as you might expect, many of our European neighbours are not too pleased about our departure, which means they are going to make it difficult for us.

In response, our Chancellor has suggested that we could lower income tax in the UK, which means many of the richest people in Europe would be tempted to make a move here.

It’s an interesting strategy for sure, but one I think wouldn’t actually be brought into reality. No doubt the millions of contractors and self employed people in the UK would be really pleased at the news of less tax to pay, and all of the contractor accountants would have more business than ever before with the European super rich entering our shores…but it just isn’t going to happen.

We are currently at a time where everybody is doing a lot of talking, but when it comes down to it Brexit will happen and there won’t be anything significant that changes. That is to assume that the UK will leave the European Union of course, and even if they do, what kind of exit it will be.

Let’s not get into the small details on this blog though, all we really care about is how this all affects contractors and the self employed.

As I’ve talked about before, I don’t believe that UK contractors have anything to be concerned about at all, and in actual fact they should find more work than ever before.

This is because there will be more demand for their services and all major companies are planning to stay in the UK, particularly cities such as London.

Don’t worry, that company who you currently get a lot of work from isn’t going to suddenly get up and move to Paris. The message is clear…companies are staying in Britain.

Right now we are waiting on a speech from the Prime Minister Theresa May, as she talks about the plan for Britain to be out of the European Union at some point this year. Many experts agree that the process should start around the end of March, although who knows for sure.

My advice to contractors is simple, just get on with what you do best…offering your skills and finding new clients. If Philip Hammond wants to make Britain a tax haven even better.

What about you contractor accountants out there…are you soon to be doing the accounts of the European super rich? I don’t think so, although you never know.

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