Tax evasion or tax avoidance: what's the difference?

With allegations of tax evasion flying, here's how to be sure of staying on the right side of the law

Tax return
(Image credit: Miguel Medina/Getty Images)

Do you pay your tax? If the headlines are to be believed this week plenty of us aren't paying all we probably should. Whether you are a Tory bigwig accused of tax avoidance like Lord Fink, or a blue-collar worker not declaring income as accused by Ed Balls, it seems there are many ways you can reduce your tax bill some legal, some not.

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