Category Archives: Tax

Johnson didn’t have power to change tax rules for Dyson, says former Attorney-General. Was Major Corruption lying AGAIN?

Boris Johnson: he should hang his head in shame. Sadly, he doesn’t have the self-awareness – this shot is just of him checking his notes at a prime ministerial broadcast.

Boris Johnson’s claim that he arranged a tax break for James Dyson was impossible because he doesn’t have the power, according to former Attorney-General (the government’s top lawyer) Dominic Grieve.

Johnson defended himself during Prime Minister’s Questions yesterday (April 21) after evidence emerged that Dyson had contacted him by texting his personal telephone, asking for tax breaks so Dyson staff who had relocated to Singapore after Brexit could return to the UK and build ventilators to tackle Covid-19 without paying tax penalties.

Johnson’s responses are shown in this tweet:

His responses in PMQs were that he refused to accept criticism for doing everything he could to ensure that the UK had the equipment it needed to fight the Covid crisis.

(This is risible when we remember that successive Conservative governments including Johnson’s had systematically weakened the nation’s ability to respond to a pandemic crisis, including selling PPE to China.)

In the end, Dyson provided no ventilators at all.

On the BBC’s Newsnight, former A-G Dominic Grieve made the legal situation abundantly clear:

So either Boris Johnson corruptly and illegally influenced the tax system so this industrialist, who campaigned for Brexit and then scarpered abroad to escape the consequences, could profit from a crisis…

… or everything he can do to secure help for the UK in a crisis is in fact nothing at all.

Major Corruption has shot himself in the foot, it seems.

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Local services in Wales will suffer if the Conservatives take over the Senedd

Think before voting: the Conservatives are promising to freeze council taxes in Wales if they take control of the Assembly – but this will benefit the rich far more than working-class people.

The Welsh Conservatives have said they will freeze council tax for at least two years if they take control of the Welsh Assembly after the local elections in May – but this is a threat, not a promise.

The party has said it will fund a council tax freeze, but there is no guarantee that it will follow through on any such pledge. Even if it does, this only means that it will maintain services as they are.

So what happens when events demand spending beyond that level?

Answer: we won’t see it – they’ll say there isn’t enough money (which is a lie).

Also: who benefits most from a council tax freeze? The rich.

Taxation is a way of redistributing wealth, ensuring that poorer people are able to enjoy publicly-funded services for all, rather than those services being restricted only to those who can afford to pay for them out of their own pocket.

It also ensures that funding is available for projects that would not otherwise receive support from private individuals.

By freezing council taxes, then, the Conservatives are pledging to let rich people keep more of their money while depriving the poor of the services they need to get by.

But the Tories don’t tell you that.

Source: Tories pledge to freeze council tax in Wales for at least two years

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Why is useless HMRC getting a 13 per cent pay rise while brilliant NHS get only one per cent?

It was revealed over the weekend that staff at HM Revenue and Customs are to receive a 13 per cent pay rise. We already know NHS staff will get only one per cent.

Some commentators have insisted that we should not begrudge tax inspectors their pay rise but I am not one of them, because I have recent experience of their work.

I file my tax returns online, you see.

When I did it this year, the automatic system demanded that I pay half the amount again, as a down-payment on next year’s taxes – but I declined on the basis that the Covid crisis has hit my income to the point where I’m unlikely to hit the threshold for paying income tax at all.

The response was that this would be considered and I would be contacted later.

I had that contact last week. After I fished it out of my email system’s spam folder, it instructed me to visit the HMRC element of the gov.uk website.

This meant I had to provide a numerical code and a password, which I did.

Then I was told a further six-digit passcode had been transmitted to my mobile phone, and I had to look it up and input that as well.

Then I was told I would be asked further questions on two of three subjects (the choice being mine). One of them was a non-starter because it didn’t apply to me, and the first of the other two required me to provide “0” as an answer, which HMRC’s website doesn’t allow.

So I could not retrieve my message. I’ve informed HMRC and am awaiting its response. This may take some time.

All I want to do is pay my taxes and the system is holding me up. For this, HMRC staff will receive a 13 per cent pay increase over the next three years.

If I go to my local doctor with a health problem, I can be assured of instant attention. If the problem turns out to be serious, that attention may involve being ambulanced to hospital for the immediate attention of specialists in their field. For this, NHS staff will receive only a one per cent pay increase.

You can appreciate my reasons for begrudging HMRC staff their increase, I hope.

Source: 13% pay rise for HMRC changes debate on NHS dispute, Maajid Nawaz insists – LBC

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Nothing for you if you’re sick, disabled, at school or in care: reaction to the Tory budget

They all do this: but the way Rishi Sunak held the red box indicated there wasn’t much in it. And there wasn’t.

Rishi Sunak’s budget has shown he is a diehard Tory, with concessions for businesses while those of us in need can go whistle.

He has claimed his hands are tied by huge Covid-19-related debts – but we all know that he has already paid them off, by the simple means of creating the money needed to do so.

And his big plans for the future were pathetic: new ‘free ports’ that have always been a bad idea, and an investment bank to replace the one a previous Tory government sold off a few years ago.

We are ruled by intellectual pygmies – and that is being harsh on the pygmies.

I watched the budget speech and commentated on it on Twitter, so I can provide a first-hand account of the announcements – but first, I’d like to go straight to what wasn’t announced, with comments from people who were reading at the time:

So the people who did all the hard work during the Covid-19 crisis will receive no reward for their sacrifices at all – even though many of them sacrificed their lives, contracting the virus and dying because Matt Hancock couldn’t be bothered to supply proper personal protective equipment (PPE) at the right time.

However:

People with disabilities who did not receive the £20 benefit uplift because they are on so-called “legacy” benefits will still receive nothing more, even though the uplift will remain in place until September. After then, it seems people who lost their jobs because of Covid-19 will fall over a so-called “cliff edge”, with the uplift cancelled, forcing them to live on much less.

The Tories have made a major issue of education in the crisis, demanding that our children must go back to school as soon as possible in order to catch up on what they have missed – but Rishi Sunak has provided no extra facilities for this in his budget. It seems it was all talk and – in fact – the plan is to reopen a major vector for transmission of Covid and hope that the increase in infections – and deaths – won’t be noticed amid the falling numbers triggered by the vaccination programme.

And after years of promising to fix problems in the social care system – that became hugely pronounced when 30,000 people died in care homes because of Tory stupidity – Sunak is breaking that promise by offering nothing.

Meanwhile, those who profited hugely from the pandemic – either by being perfectly situated to continue selling goods to people in lockdown or by receiving government Covid-related contracts to provide services at hugely-inflated costs (many of which were not actually provided because the contractors were not qualified to do so) are to get off scot-free because Sunak has backed away from calls to impose a wealth tax.

So, what has he done?

Well, he carped on a lot about borrowing a huge amount of money to pay for Covid-19. That was a stream of lies from start to finish, as I pointed out:

So we were led to expect tax hikes a-go-go. But this didn’t happen:

The refers to income tax, National Insurance and VAT. However – and this is indeed a ‘however’:

This is the amount you earn before you start paying tax, or before you start paying it at a higher rate. Because these thresholds are frozen, it seems more people will pay at a higher rate due to wage inflation, so there will be a de facto increase in taxes. But this depends on people receiving pay rises to cover their costs and Tory policy over the last 11 years has been to discourage that – it’s the reason real take-home pay has fallen by thousands of pounds per year since 2010.

This was the only increase in taxation, and it is only on a tax on profits. So firms that pay corporation tax can avoid it by ensuring that they make no profit from 2023. The best way to do that is to invest in infrastructure and wages (by employing more people, perhaps).

It would be wrong to say that Sunak’s budget does nothing for ordinary people – but it’s all based around existing Covid-related schemes:

Sunak went on to announce plans for government investment. The main points were:

But “free ports” are not new, nor are they likely to help:

Here’s an interesting point:

Mr McDonnell himself promptly answered it:

There was also some muttering about policies that give a nod to the environment but if you blinked, you missed them – and This Writer blinked. They certainly don’t constitute a “Green Industrial Revolution”!

As Tory budgets go, this is not the disaster for working-class people that it could have been – although the main hits have been offset, so it may be a few months or years until we can know the effects for sure.

The lack of any hard taxes or austerity measures suggests a tacit admission that Covid-19 really is bought and paid-for, and there won’t be any real need to pay for it again.

So This Writer is left with a huge sense of anticlimax. I was expecting to be fearful after today; instead I feel let down.

Have YOU donated to my crowdfunding appeal, raising funds to fight false libel claims by TV celebrities who should know better? These court cases cost a lot of money so every penny will help ensure that wealth doesn’t beat justice.

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The people want a windfall tax on big firms’ pandemic profits. Why is Keir Starmer getting in the way?

Keir Starmer: yet another own goal.

I bet certain commentators will be doing their best to muddy this issue so let’s make it clear:

There are moves to increase Corporation Tax, forcing companies to pay more when they could be investing that money in (for example) employment of people who desperately need a regular paycheque. This is a bad idea.

There are also moves to levy a windfall tax on firms and individuals who have profited from the Covid-19 pandemic – such as Amazon and all those Tory cronies who won huge Covid-related contracts. This is a good idea and is supported by 70 per cent of the population, according to a Survation poll.

Keir Starmer and his Zombie Labour party oppose any increase in taxation for businesses.

There will be voters who are shocked that anybody claiming to be a Labour Party representative should plead against taxing corporations, and while there are good reasons for leaving Corporation Tax low at the moment, although it is likely that firms will need further incentives to keep them on the straight and narrow, there is no reason at all to back away from a windfall tax.

This decision is spitting in the faces of the voters – at a time when Starmer desperately needs to get them on-side.

Labour is falling increasingly further behind, at a time when – we were told – the party should be at least 20 points ahead of anybody else, having dumped Jeremy Corbyn.

Is it time his supporters’ club admitted that this wasn’t true and Starmer is a non-starter?

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Is Starmer right to oppose tax rises on businesses and wealth?

Labour leader Keir Starmer seems to have provoked another attack on his tattered left-wing credentials, after he opposed plans to levy taxes on corporations and wealthy individuals who have made a fortune from the Covid-19 pandemic, when Tory Chancellor Rishi Sunak announces his spring Budget.

But is he right?

On corporation taxes, it seems he isn’t. Here’s Tax Research UK’s Richard Murphy, speaking last year but applying his words to this year too:

Okay, but how about wealth taxes?

The argument on taxing businesses is clear – it would discourage them from taking on (or retaining) staff at a time when we need people to keep their jobs, and it would take money out of the economy.

But wealth is kept in (very large) bank accounts and is not attached to employment.

So why not tax the people who have made (or increased) fortunes from the suffering of the rest of us?

At the very least, it might blunt the (fake) Tory argument that we all need to pay back the cost of the Covid crisis (that they’ve already paid anyway, by creating money).

This Writer would therefore tend to support it – but I’m ready to be corrected if you have a better argument.

Starmer’s alternative to taxing the rich is – as perhaps we should have expected – a neoliberal nightmare: he wants ordinary people to give any money we’ve managed to save during the Covid crisis to a new national investment bank. Why should we? If we back businesses, who would get the profit? And what if those businesses failed?

No Holding Back, a campaign group of socialist MPs, has said that Starmer seems to have his priorities wrong and Labour “needs a partnership with society, paid for by taxation,” not a “partnership with business, paid for by society”.

So it’s looking bad for Starmer.

But the outlook for the nation is looking worse. With no direction from either main political party, it seems the UK is drifting into economic shipwreck.

Have YOU donated to my crowdfunding appeal, raising funds to fight false libel claims by TV celebrities who should know better? These court cases cost a lot of money so every penny will help ensure that wealth doesn’t beat justice.

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Will Sunak tax you cash you don’t owe, to pay a Covid-19 bill that doesn’t exist?

Rishi Sunak: now his nervous look may be attributed to the possibility that he will lie to us next week, demanding we pay back £300 billion that the Tories used to cover the cost of the Coronavirus when there is absolutely no need to do anything of the kind. The government created the money that was used to pay for the crisis.

Pay special attention to Rishi Sunak’s spring Budget speech next week because he will probably try to steal money from you.

It is likely Sunak will introduce measures that he claims are needed in order to pay back the £300 billion (roughly) cost of everything the Tory government has done to keep the UK running during the Covid-19 crisis.

He will be lying if he does. No such measures are needed.

You see, the money used to pay for Covid-19 was created by the government. It wasn’t borrowed and there is therefore no need to pay it back.

Watch Richard Murphy’s explanation here and you should get the idea:

What strikes This Writer as particularly evil is the implication that Sunak may impose taxes on us, in order to perpetuate a myth that the Tories have spun since 2009: that austerity is necessary.

It isn’t. It never was.

And this means that all the deaths that have been driven by Tory austerity policies were unnecessary; they were deliberately planned by Conservatives from David Cameron’s era onwards and this means that Cameron and those Tories who conspired with him (Iain Duncan Smith springs particularly to mind) should be brought to account for it.

But I doubt they will.

Public opinion is largely led by the mass media, who are currently owned by the Conservatives. They’re hardly likely to do anything that endangers them.

And that means you are unlikely to hear on the BBC any suggestion that we don’t owe anything for Covid-19.

But you don’t. And now you know this, you need to tell everybody around you.

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Are the Tories trying to stop poor people having a say in public services because they stopped the low-paid from paying tax?

Some of us saw this coming.

If you’ve seen the video clip in which Richard Murphy explains how money works, you’ll know that people who pay tax are more likely to vote – they feel they have more of an interest in it.

(Of course, tax is about returning money the government has created, in order to avoid catastrophic inflation – and not about giving the government the money it needs in order to provide public services, but let’s not complicate matters by going into that.)

But the Tories have spent the last 11 years raising the earnings threshold at which people pay tax, claiming this as a sign of their generosity.

Oh really? Watch the video and consider the comment by Paul Sweeney.

It seems to This Writer that, through no fault of their own, attempts are being made to deny more than 20 million people the right to say which services the government funds. Presumably the next step is to say, if you don’t pay tax, you don’t get to vote.

We’re on a very slippery slope, here.

And a hypocritical one.

You’ll notice that nobody is saying you shouldn’t have a say if you don’t pay all the tax for which you should be liable – for example, because you engage in tax avoidance.

So super-rich tax avoiders will be able to vote/help decide which public services are funded or whether they get funded at all – despite the fact that most of them don’t need the most expensive of those services. Logically, they’ll say those are the ones to get the axe.

Meanwhile, the super-poor – who are now prevented from paying tax, either because they are on benefits or their wages have been pushed into the dirt by Tory employers – may be denied that right.

It should not even be a subject for discussion.

The qualification for voting – and therefore for helping decide how public money is spent – is UK citizenship because we all live here and we are all affected by the decisions the government makes.

Oh, and of course Income Tax is not the only tax that people pay.

So to rule people out of the process because they have been priced out of paying just one of the UK’s many taxes would be unfair in the extreme – and Emma Barnett was talking out of her rear end.

What a shame that’s such a good description of our current Tory government.

Have YOU donated to my crowdfunding appeal, raising funds to fight false libel claims by TV celebrities who should know better? These court cases cost a lot of money so every penny will help ensure that wealth doesn’t beat justice.

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No taxation without representation! But do we get value for money from our taxes?

Richard Murphy’s YouTube channel really is a goldmine if you want to explain to people how money works and why it is important.

In the video below, he discusses tax – why it is a good thing (yes, really!), how it balances faults in our economic system, and how it gives us a voice in government.

Did you know, for example, that without tax our money would be worthless?  Its value is validated by the fact that the government will only accept payment in pounds sterling, and that’s the only reason the pound has any value at all. Money is an artificial construct, you see. Its only worth is given to it by the importance we allow it.

Did you know that the government (it doesn’t matter which party is in office because they all do the same thing) must tax us in order to maintain the value of our money? If it didn’t take out of the system at least some of what it pays in, we would face rampant inflation. This means that governments create money, of course.

Did you know that, when they pay money into the system, governments support particular projects – either by directly funding them or by providing tax “breaks” to allow businesses or organisations extra cash they need to be financially viable?

And did you know that people who pay tax are more likely to vote – because it means they have a say in what is done with their money?

All these things are explored – albeit briefly – in the video below. It’s a great little primer on why the money in your pocket or bank account is important. And it’s less than four minutes long:

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So much for ‘free trade’ between the UK and EU! Have you seen how much tax the TORIES are charging us?

Money, money, money: the UK government is coining it in VAT and other taxes since Brexit finally happened on January 1. And YOU are paying.

Tales of shoppers having to pay huge extra costs to have goods delivered from the EU post-Brexit are proliferating.

But that doesn’t mean we don’t have free trade!

It means our own – Tory – government is charging us extra in taxes.

It seems possible that this was the intention all along.

So in the BBC story (link below), one shopper was lumbered with a £12 extra cost for a £50 item.

UK VAT accounts for £10 of the extra £12 that Sascha was asked to pay. Sellers may also be charging higher delivery fees to cover any extra paperwork or border delays they may face.

On items costing less than £135, the charge is applied at the point of sale.

Another buyer was asked to pay £123 on top of £600 (and £25 delivery) for two designer handbags from Paris – when they arrived. This was still UK VAT, the BBC reckons, but because the items cost more than £135, the charge was applied when the items reached their destination.

A woman who received earrings as a gift, posted by a friend, was charged £28.85 by parcel handler DHL, even though they were sent before Christmas. Deliveries ran late so they arrived after January 1 – and came with the added taxes.

Gifts worth less than £39 don’t attract any extra charges… But gifts over that, like gold earrings, are eligible for VAT and (if it’s over £135) customs duties. And it’s always the recipient who receives the bill.

Import VAT applies for second-hand items as well as gifts, even if bought from a private individual.

EBay already has its system set up to charge the extra VAT upfront. Amazon says VAT will always be charged at point of sale on its site too. But the system won’t be running smoothly yet everywhere

Oh – and it works in reverse, too. A person in France, buying a £150 pair of boots from the UK, was asked to pay 88 Euros in import duty, breaking down to 43 Euros VAT, 30 Euros customs tax and a 15 Euro handling fee.

She was able to reject the delivery – but many others may not have the option as firms are

changing their terms and conditions so that customers have to cover the extra charges, even when goods are returned.

The BBC explained:

Shoppers on the continent buying from UK firms face the same rules as UK shoppers do in reverse so Jemima would have had to pay VAT and customs charges, because the boots or the materials they were made from, originated from outside the EU.

The revelations received this response on the social media:

Goods shortages, much higher prices, but at least we’ve got blue passports eh? How many still think #Brexit was a good idea? Voluntarily kicking ourselves when we’re already down,” tweeted Sheridan Webb.

Pete Franklin added: “That normal, apparently successful, people are being surprised by this gives us a clue why we are in this mess – they simply haven’t been paying attention. ”

Perhaps Steve Feasey put it best: “When Project Fear turns out to be Project Hasn’t-Everything-Got-Dear.”

And some have added this to the list of disasters caused by Brexit since the EU referendum in 2016:

Source: Brexit parcel price shock: ‘I had to pay £30 for a gift’ – BBC News

Have YOU donated to my crowdfunding appeal, raising funds to fight false libel claims by TV celebrities who should know better? These court cases cost a lot of money so every penny will help ensure that wealth doesn’t beat justice.

https://www.crowdjustice.com/case/mike-sivier-libel-fight/


Vox Political needs your help!
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And do share with your family and friends – so they don’t miss out!

If you have appreciated this article, don’t forget to share it using the buttons at the bottom of this page. Politics is about everybody – so let’s try to get everybody involved!

Buy Vox Political books so we can continue
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The Livingstone Presumption is now available
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HWG PrintHWG eBook

Health Warning: Government! is now available
in either print or eBook format here:

HWG PrintHWG eBook

The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:

SWAHTprint SWAHTeBook