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The Guardian - UK
The Guardian - UK
Business

Is it unethical to set up as a limited company for tax purposes?

Person looking at HMRC website
Is it unethical to use a limited company for tax? Photograph: Chris Batson/Alamy

Twice a week we publish problems that will feature in a forthcoming Dear Jeremy advice column in the Saturday Guardian so that readers can offer their own advice and suggestions. We then print the best of your comments alongside Jeremy’s own insights. Here is the latest dilemma – what are your thoughts?

My partner has recently changed their working arrangements – they now work for their old employer as an independent contractor on an ongoing basis, getting paid the same income.

An accountant has advised my partner to set up as a limited company to avoid paying the usual rate of tax. I feel uncomfortable with this as I consider these kind of arrangements to be unethical. I understand my partner loses certain benefits by effectively being self-employed, but I’m not sure how much this offsets the somewhat immoral (in my view) aspects of tax avoidance. Am I being unfair?

Do you need advice on a work issue? For Jeremy’s and readers’ help, send a brief email to dear.jeremy@theguardian.com. Please note that he is unable to answer questions of a legal nature or to reply personally.

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