Keep it simple

I have an overriding philosophy in life of trying to keep things simple.  It’s a good philosophy, but the problem is this:

It’s easy to make simple things complicated

It’s hard to make complicated things simple

A complicated problem can be broken down to something simple.  It’s a case of breaking the problem up into small easy stages.  It takes time, but the benefits are worth it.  The big mistakes tend to happen when people don’t understand what they are doing.

This technique works well when you can apply logic.  Don’t use it for relationships (that needs the Sorry technique).  It also doesn’t work with the UK tax system.  Applying logic to the UK tax system to solve a problem is a dangerous game played with loaded dice.  The UK tax system is renowned as one of the most complex in the world.

Imagine then my surprise when I found out there is a Dummies Guide to Paying Less Tax 2006/07.  Quite amazing; I’ve ordered a copy to find out more.  Do they skate around the complex issues or break them down. Do they say "it depends". I would have loved a copy 18 years ago; it would have been a joy to witness the reaction from the Old School partners.

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Comments

[Dennis H]

From what i've seen, it is practical and simple, covering the basics plus a few nice little 'advisory' bits. Perfect for the man in the street to at least be equipped to ask questions. Beyond that? The title says it all.

[Philip Woodgate]

My copy arrived today. It's written by Guardian journalist Tony Levene. He isn't a qualified tax professional, but as a journalist he explains his points well. There's a good logic to the book.

On deciding on the structure for a new business he notes:

"I can't pretend the choice is easy. It's not. Or that understanding the rules is a piece of cake. It's not."

It's a commom thread. Where areas are complex he says so and where there are potential pitfalls he points them out. Most of the time he does a good job of explaining the issues, but acknowledges there are more complex areas when it's best to get advice.

The book works best for the individual who maybe has a house, children, investments, rental income and perhaps has a very small business. For £10 it provides a good overview of the UK tax system.