But that's silly!

Do you ever read an article or advertorial by someone in the same business as you and think, "but that's just silly!"?

I know we do at Accountancy Edge.

Just this morning I chanced upon an article by an accountant in the March 2013 issue of The Link Magazine. In it they were talking about year-end tax planning opportunities in a not entirely accurate way. But I can let that slide, as it got some of the ideas across.

Bringing required capital expenditure forward into the current tax year to accelerate your tax relief is sensible tax planning. As is paying a pension contribution to take advantage of higher rate relief.

That wasn't all though. There was also a case study.

In it, their client was in danger of paying the 50% tax rate, so they were advised to go on holiday in March rather than do any billable work.

Apparently this meant they could have their holiday in the sun... and save tax too!

But that's silly.

Yes, not working so you don't earn any money in March may keep you under the higher rate tax threshold. But it would also mean you don't earn anything. The tax man my not get his 50%, but you don't get your 50% either.

So just how does that make anyone better off?

Even if you could do the work later, that takes up time that stops you taking on other jobs. That way madness lies!