HMRC: if you have a Covid-19 test, the government will tax you for it.
Just when you think the Tories are as low as they can go, they find a new way to disappoint.
HMRC has confirmed that Coronavirus tests are to be treated as a “benefit in kind” and that every employee who takes one as part of their job will be taxed for it:
HMRC yesterday confirmed workers who have a Coronavirus test from employer as part of their job will see it treated as a 'benefit in kind' and thus be taxed on it (& see take home pay reduced)
Delighted to see the Treasury Select Committee are taking this up with the chancellor.
Some of us should be tested regularly because our jobs involve regular contact with large numbers of people.
Consider the doctors and nurses who have saved so many lives already, for example.
Do you think they should be penalised, simply because the nature of their work – saving lives – requires them to take these tests?
It won’t be a step too far because British people are notorious wimps when such impositions are made on their working pay and conditions.
But if you are affected, you should be downing tools and demanding that this decision be refused, and if you aren’t, you should be downing tools in solidarity. This is an attack on all of us.
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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How sympathetic of our tax guardians! And if I get caught evading my tax responsibilities, will I receive the same treatment?
No?
Then this is unfair and must end.
It also seems contradictory. Look:
A senior HMRC official admitted that the UK tax authority panders to the rich and powerful when chasing them for tax evasion so they can avoid “reputational damage“.
If you ever had any doubt that in Britain there really is “one rule for them, and another for the rest of us“, this utterly astonishing admission by the UK’s tax authority proves it.
Richard Las, a deputy director of HMRC, said that criminal prosecutions are not the “default option” for cases of tax evasion, money laundering or fraud. He went on to say:
“When deciding whether to deploy our resources, we try to understand what motivates different types of offenders. For example some tax offenders are very wealthy, prominent members of the community. We know that these types of people do not want the reputational damage of custodial sentences, and we can use that to our advantage.”
I could understand this strategy if it resulted in a larger repayment to the Treasury, but the evidence indicates that it does not.
Can HMRC point to anyone who has paid more back to the state as a result of the organisation using the threat of reputational damage “to our advantage”? No – because that would make the whole exercise pointless.
And consider this: Is HMRC admitting it blackmails the rich?
The more one thinks about the HMRC statement, the less credible it seems.
This government department is apparently admitting blackmailing rich people with the threat of reputational damage if they don’t pay up – but we have no evidence to show that they have paid everything they owe.
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All you have to do is look at the list of beneficiaries from this proposed law change. None of them are short of a few pennies.
And how many are looking forward to cashing in on Brexit?
Brexit-backing MPs as well as counterparts from the remain campaign have backed a controversial measure to extend a tax break to referendum campaign donors, after several billionaire donors received large demands from HMRC.
The shadow chief secretary to the Treasury, Peter Dowd, criticised the proposed amendment to the finance bill from prominent leave campaigners Charlie Elphicke, Jacob Rees-Mogg and Iain Duncan Smith, but which has also been backed by Labour MPs and remain supporters Alison McGovern and Caroline Flint.
It would extend a tax exemption for political parties to referendum campaigns – backdating it to cover the EU referendum.
Last month it was revealed that several prominent leave campaigners who donated large sums to the Brexit campaigns during the 2016 referendum received substantial tax demands from HMRC.
HMRC said it had applied the law equally across all donors, but senior UK cabinet ministers Boris Johnson and Michael Gove expressed concerns about the demands.
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Isn’t it interesting – some would say fortunate for the Conservatives and their tax avoiding friends – that HM Revenue and Customs don’t seem to have enough staff and resources to investigate the Paradise Papers revelations properly?
The Tories have been cutting Civil Service number wholesale since they came into office in 2010. As the graph (above) shows, the number of staff in HMRC was cut by one-third between 2005 and 2014. It should be admitted that New Labour was in office for the first five years of this period.
Current staffing at HMRC is 60,579, according to UK government figures.
Those staff members are implementing Brexit changes and 15 major programmes already – and must now attempt to add investigating the facts in the Paradise Papers to their duties.
Is it too much?
If the workload is too great, HMRC bosses must face the possibilities that mistakes will be made – unless they decide to concentrate on some projects and exclude others, or take on more staff.
This Writer would suggest that a Tory government is unlikely to take on any more staff!
And no minister would want to admit having pushed ahead with projects, knowing that they were likely to be flawed.
That leaves us with the possibility that some projects will be dropped.
Will the Tories want to drop programmes it has initiated? This seems unlikely.
But shelving an investigation that involves 13.4 million files? Into tax avoidance?
Let us be honest: Tories resent the national assumption that the rich must pay taxes along with everyone else – and must put a higher proportion of their earnings towards those taxes. They assume the poor are more likely to use publicly-funded services, and should therefore pay for them; if those services prove too expensive, then the poor should do without them.
It is an assumption that avoids inconvenient truths, like the fact that we all use some publicly-provided services – rich and poor alike. Our network of public roads is an example that springs to mind.
So it seems likely – to me – that the Tories will find it very easy to delay – perhaps forever – any investigation into tax avoidance, especially one that could implicate members of the Conservative Party, donors to the Conservative Party, or others whose exposure would prove an embarrassment to the Conservative government.
Time will tell if I am proved correct.
HM Revenue and Customs is struggling to cope with a growing workload, including investigating revelations contained within the Paradise Papers, according to parliament’s spending watchdog.
The public accounts committee has warned that it is “far from confident” that the tax authority has sufficient resources to scrutinise claims published in the Guardian last year arising from a leak of 13.4m files.
In a report released on Thursday, MPs concluded that the Paradise Papers leak had highlighted the “potentially dubious practices of many high-profile individuals and corporations” that use offshore tax havens.
The committee said the tax authority was having to make tough decisions about the allocation of its own resources, while implementing Brexit changes and 15 major programmes across government.
The tax authority has until April to outline how it plans to cope with the growing pressures on HMRC.
Meg Hillier, the chair of the committee, said that HMRC’s “high-wire act” is facing “potentially catastrophic consequences” for taking on too many tasks at the same time.”
She added: “HMRC accepts something has to give and it now faces difficult decisions on how best to use its limited resources – decisions that must give full consideration to the needs of all taxpayers.”
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A specialist team at HM Revenue & Customs is examining the tax affairs of 6,500 super-rich individuals [Image: Alamy].
… And the story doesn’t say whether the prosecution was successful.
This revelation will certainly re-kindle claims that HMRC is concentrating far too much of its effort on tax avoidance among working- and middle-class people when it should be putting resources elsewhere.
But the simple fact is that it is easier to detect tax avoidance among the less wealthy classes – because they don’t enjoy as many – legal – opportunities for avoidance.
This is a story about corruption in Parliament, where super-rich MPs simply won’t simplify tax in a way that might disadvantage themselves. Or so it seems to This Writer.
Still, it is welcome to see that 40 of the people named in the Panama Papers are now under investigation.
Is it forlorn to hope that one of them is David Cameron?
Tax inspectors targeting Britain’s wealthiest people have identified potential evasion and avoidance worth nearly £2bn, but have pursued only one successful criminal prosecution, a National Audit Office report reveals.
It says the tax affairs of 6,500 super-rich individuals – each worth more than £20m – are being examined by a specialist HM Revenue and Customs unit. The unit is investigating outstanding receipts worth £1.9bn, a majority of which involve aggressive avoidance schemes.
However, just two individuals have been criminally investigated over the past five years, leading to a single prosecution, while another 70 were pursued through the civil courts.
In an indication of the scale of the task faced by the unit, the report discloses that each of the 6,500 super-rich taxpayers has had on average four serious tax issues looked at by the unit. Around 4,000 inquiries have been open for more than three years, it adds.
The report sheds a light on the scale of potential tax avoidance involving the super-rich and will prompt further claims that Britain’s wealthiest people are not being pursued with the same vigour as benefits claimants or small businesses.
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HMRC tax assurance commissioner Edward Troup should consider his future after claiming that his failure to collect £34 billion in unpaid taxes – and that’s a conservative figure! – is no worse than in other countries.
Doesn’t he know he lives in the United Kingdom? We used to set the standard to which other countries aspired, but not any more. You know why? Because the top jobs started going to people like Edward Troup!
The British and Northern Irish public expect better of their public officials. If Troup can’t deliver, he should make way for somebody who can.
The amount of tax going uncollected in the Britain is no worse than in other countries around the world, a senior official at the tax authority has said.
Edward Troup, HMRC’s tax assurance commissioner, told the House of Commons Treasury Select Committee that the £34 billion tax gap was broadly similar to that in other countries
The figure, which includes tax avoided and evaded, as well as unintentional errors made by the tax authority and taxpayers, represents 6.4 per cent of all tax collected.
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George Osborne’s most famous performance in Prime Minister’s Questions, from November 2014. What was he on?
George Gideon Osborne. Was there ever a more foolish fellow running the Exchequer?
Probably not. Did you hear him in Prime Minister’s Questions yesterday, trying to tell us that the UK’s social security bill makes up seven per cent of welfare in the whole world, and that this is “unsustainable”? What a berk.
The first question this raises is, can he prove his “seven per cent” claim?
No – he’s wrong. The claim is based on a comment by German Chancellor Angela Merkel about EU social security being 50 per cent of that in the world, making the UK’s share 7.4 per cent of the total. Unfortunately for Thick George, she was using World Bank data that only included 96 countries and excluded large economies like Canada and Mexico, where social security makes up 18 per cent and 17 per cent of each country’s GDP.
The Guardianreckons that, if all countries were taken into account, this would not seriously affect the UK’s share of the total, suggesting that it accounts for the rounding-down to seven per cent from 7.4 – but there’s no proof either way. The article also quibbles about definitions of social security spending.
What this really shows is not that the UK spends too much, but that other countries spend too little.Mr
Nearly half of the world’s population – three billion people – must try to scrape a living on around $2.50US per day – or less. Of those, 1.3 billion are in extreme poverty, having to survive on less than $1.25 per day. That’s around 80p.
The countries in which they live – mostly developing countries – don’t have social security at all; that is the scandal.
If they did, then Gideon could not quote his “seven per cent” figure – it would be much lower.
What’s stopping these developing countries? Well, the organisation most directly responsible is probably the International Monetary Fund, whose ‘Structural Adjustment Programmes’ have put these countries into a continual cycle of debt; they can’t help their populations without breaching the IMF’s rules. This is the same IMF that wants the UK to run a debt economy, by the way.
So much for Osborne’s claim that social security spending in the UK is too large a proportion of the world’s spend. What about his “unsustainable” comment?
He said: “We can either carry on on a completely unsustainable path or we can continue to reform welfare so that work pays and we give a fair deal to those on welfare and indeed a fair deal to the people, the taxpayers of this country, who pay for it.”
Ignoring for the moment the fact that those on social security are in fact taxpayers themselves, let us consider the fact that the UK government does not collect as much tax as it could, and in fact offers extremely lucrative tax avoidance opportunities to the obscenely wealthy.
Did you know that you could fit the owners of half the world’s wealth into a double-decker bus, with space to spare? Less than 80 people own more money than the other seven billion, and you can bet that the majority of those with UK citizenship aren’t paying their full whack of tax!
A report by Tax Research UK has indicated that the amount of tax being avoided is around £122 billion every year. Compare that with the UK’s current budget deficit of £107 billion per year and you will see that – in a perfect world in which it was all collected – we would be running surpluses of at least £15 billion per year.
The Conservative government, of which Osborne is Chancellor, tells us the most effective way of tackling the deficit is by cutting the public services on which many people rely. They say it is the only option without increasing taxes.
But, with more than £100 billion in taxes going uncollected, why is the government slashing funding to the HMRC investigative branch?
Over on Tax Research UK itself, Richard Murphy has taken David Gauke, the financial secretary to the Treasury, to task over his fudged claims about the tax gap.
Gauke said: “The tax gap as a percentage has been lower in every year under us than it was in any year under the Labour Government”.
Mr Murphy replied: “Percentages are the evasive politician’s favourite tool, so I think that claim can be dismissed. What remains baffling is David Gauke’s apparent inability to see just how wrong his data might be. The government claims that the tax gap is £34 billion. And then it claims that HMRC recover £26 billion a year. Or to put it another way, £60 billion of tax abuse is attempted and 40 per cent is recovered.
“Is there anyone who thinks that remotely likely?”
He goes on to completely trash Gauke’s – and the Conservative Government’s – claims, and it is strongly recommended that you read the article for the details.
Mr Murphy says HMRC’s tax gap estimates should be subject to independent economic audit to check their credibility. He says HMRC’s claim of tax recovered should be subject to independent scrutiny to ensure that it is credible. He says a review of HMRC is overdue, with a panel of independent experts including from unions and civil society being included in the task. And he says it is time we had an Office for Tax Responsibility, reporting to the Public Accounts Committee, to ensure that this most critical department of government is held to account.
He states: “A recovery of £26 billion out of more than £100 billion I could possibly accept – except to say it could be so much better. But that rate of recovery out of anything less is absurd right now – as is HMRC’s tax gap estimate.”
So, under analysis, Gideon the Towel Folder’s claims are no more than silly attempts to confuse us.
If he bothered to collect all the taxes owed him, he would be running a budget surplus tomorrow.
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Slippery as an eel, the submarine Chancellor has surfaced from whatever hiding-place he has been using for the last week or so, insisted that the pursuit of people who evaded tax on advice from the HSBC Bank is nothing to do with him, and re-submerged before anybody could point out that this isn’t entirely true.
As Chancellor of the Exchequer, George Osborne doesn’t have a hand in individual prosecutions – but he does set the conditions under which such investigations are undertaken.
Alex Little is therefore correct in pointing out that Osborne is notably not saying that HMRC will have all the resources it needs to carry out a full and exhaustive investigation into the HSBC scandal, and that he needs to appoint financial regulators who actually want to stamp out abuses, rather than those who live in sublime ignorance (such as the gentleman mentioned in Mr Little’s article).
None of the government’s actions have satisfied Labour. Chris Leslie, shadow chief secretary to the Treasury, said: “George Osborne has finally emerged, but he still hasn’t answered any of the key questions over the HSBC scandal. He cannot continue to duck responsibility for HMRC’s failure to act or the decision to make Lord Green a Conservative Minister.
“Why has there only been one prosecution out of 1,100 names? Why did George Osborne and David Cameron appoint Lord Green as a Minister months after the government received these files? Did they discuss tax evasion at HSBC with Lord Green, or did they turn a blind eye?
“And why did the Treasury sign a deal with the Swiss authorities in 2012 which prevents the UK from actively obtaining similar information in the future?”
According to The Guardian, a YouGov survey for the Times Red Box found 62% of people want the chancellor to answer these questions.
The longer he leaves it, the less electable his Conservative Party becomes…
… and the more like a gang of crooks covering their friends’ backs.
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What can we say about the HSBC bank’s activities, in advance of the BBC’s Panorama documentary this evening (BBC One, 8.30pm GMT)?
One: HSBC Bank has been helping thousands of wealthy clients to evade hundreds of millions of pounds worth of tax. A nice dodge for the clients – and a nice earner for the bank!
Two: This is old news. HM Revenue and Customs was made aware of HSBC’s tax-avoiding practices in 2010 but from more than 7,000 British clients, the UK government has prosecuted just one person, despite having identified 1,100 tax avoiders. Didn’t George Osborne say there would be “no safe haven” for these people?
Three: HSBC did not just turn a blind eye to tax evaders – in some cases it broke the law by actively helping its clients. The example on the BBC News website is of a wealthy family who were given a foreign credit card in order to withdraw their undeclared cash overseas. The bank that likes to say “Oui”?
Four: The man in charge of HSBC at the time was Stephen Green. He gave up being chairman of the bank in December 2010, in order to become a Conservative peer and minister of state for trade and investment in January 2011. Who says crime doesn’t pay?
Four: Lord Green told Panorama: “As a matter of principle I will not comment on the business of HSBC past or present.” Honour amongst thieves?
Five: Add it all together and we can see that the Coalition government has not only allowed rich HSBC clients to steal money from the UK economy, but has actually colluded in it and rewarded the man in charge of the operation with a peerage and a cushy government job! All in it together, eh?
How unfortunate for the Tories that this has come out just 12 weeks before a general election!
Of course the Labour Party is all over this like a rash. Shadow Financial Secretary to the Treasury Cathy Jamieson said: “Tax avoidance and evasion harms every taxpayer in Britain, and undermines public services like the NHS.”
She said George Osborne needs to explain why just one person out of more than 1,000 has been prosecuted in five years, and how the then-chairman of HSBC, Stephen Green, could have been appointed a Conservative peer and a Minister by David Cameron just eight months after the Government was made aware of these activities taking place on his watch at HSBC.
“Once again the Tories have been exposed as unable and unwilling to take real action on tax avoidance – little wonder that under them the tax gap has risen, year on year,” was her judgement.
Richard Brooks, author of The Great Tax Robbery (Oneworld, 2013), knows a thing or two about tax avoidance and evasion. He summed up the Coalition government’s collusion on BBC Radio 4’s Today programme, referring to an agreement between the UK and Swiss governments, signed in 2007, to bring in “billions of pounds” in unpaid tax.
He said: “David Gauke, Tax Minister, and David Hartnett the senior tax official, started negotiating it straight after they’d received this data from the French authorities, so they knew that there was a mass of evidence of tax evasion at the heart of HSBC.
“They set about negotiating agreement with the Swiss Government which says… that ‘it is highly unlikely to be in the public interest of the United Kingdom that professional advisors, Swiss paying agents and their employees – in other words bankers – will be subject to a criminal investigation by HMRC.’
“So, knowing they’re sitting on all this evidence, they’ve simply washed their hands of it and said ‘we’re not going to prosecute’. And that’s why no-one has come before the courts in five years.”
Admittedly, with only 33 per cent support, more than two-thirds of the country don’t consider the Tories able to run anything at all, but it’s still more support than the other parties are getting.
Why?
They are letting rich people walk off with money that belongs in the Treasury and should be spent on public services.
It all goes to show that you should never – never – allow the Conservative Party to handle public money.
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It is now easier to report employers who fail to pay the minimum wage. [Image: The Guardian.]
Retail giant H&M and service station operator Welcome Break have been named and shamed for failing to pay the minimum wage – along with 35 other employers.
The firms were exposed after investigation by HM Revenue and Customs. They will be fined a total of £51,000 and must also pay affected staff the £177,000 they were underpaid.
This is not an example of extraordinary work by the Coalition Government, though. It is an example of HMRC actually managing to do its job properly, despite huge cuts to its staff and harm to its working conditions.
HMRC staff are to be applauded for their sterling work; managers less so.
The 37 “named and shamed” employers are as follows:
•Kings Group LLP, Hertfordshire, neglected to pay £53,808.91 to 53 workers
•Kings Group Lettings LLP, Hertfordshire, neglected to pay £26,893.43 to 49 workers
•Chi Yip Group Ltd, Middleton, neglected to pay £15,566.78 to 13 workers
•Kingsclere Nurseries Ltd trading as Abacus Day Nursery, Newbury, neglected to pay £12,904.19 to 8 workers.
•Ms Thap Thi Ly trading as Sweet N Sour, Fleetwood, neglected to pay £11,039.14 to 2 workers
•Michael Kearney trading as Electrical Estimates, Ceredigion, neglected to pay £5,557.91 to 4 workers
•ABC Early Learning and Childcare Centre UK Ltd, Wolverhampton, neglected to pay £5,329.25 to 68 workers
•C J Hartley Ltd trading as Headwork, Sheffield, neglected to pay £4,762.64 to 4 workers
•Mrs Kelly Jayne Lockley trading as Diva Hair Design, Walsall, neglected to pay £4,103.65 to a worker
•Browncow Tanning Ltd trading as Fake Bake Hair & Beauty Boutique, Glasgow, neglected to pay £3,406.66 to 2 workers
•J Wood Joiners & Builders Ltd, Edinburgh, neglected to pay £3,373.19 to 4 workers
•Louise Ross Trading as Luxe Salon, Leeds, neglected to pay £3,368.13 to a worker
•H&M Hennes & Mauritz UK Ltd, London, neglected to pay £2,604.87 to 540 workers
•Building Projects Ltd, Dundee, neglected to pay £2,345.85 to 3 workers
•David A Farrer Ltd, Morecambe, neglected to pay £2,261.00 to a worker
•Julian’s Hair Salon Ltd, Newbury, neglected to pay £2,131.35 to a worker
•Motorists Discount Store Ltd trading as TMS Autoparts, Manchester, neglected to pay £2,025.19 to a worker
•Ms Dawn Platts trading as Level 2 Hair Studio, Barnsley, neglected to pay £1,186.89 to a worker
•Myers and Family Ltd, Wakefield, neglected to pay £1.598.82 to a worker
•Welcome Break Holdings Ltd, Newport Pagnell, neglected to pay £1,318.70 to 19 workers
•Callum Austin Ltd trading as Jason Austin Hairdressers, Kettering, neglected to pay £1,899.66 to 2 workers
•Mrs Karen Riley Trading as Crave, Preston, neglected to pay £1,179.09 to 7 workers
•RPM Performance Rally World Ltd, Maldon, neglected to pay £998.71 to a worker
•Ego Hair & Beauty (Anglia) Ltd, Colchester, neglected to pay £985.55 to a worker
•Mr Jinit Shah trading as Crystal Financial Solutions, Middlesex, neglected to pay £941.65 to a worker
•Counted4 Community Interest Company, Sunderland, neglected to pay £930.73 to a worker
•HAE Automotive Services Ltd, Harrogate (ceased trading), neglected to pay £798.16 to a worker
•Vision on Digital Ltd, Ossett, neglected to pay £683.86 to a worker
•Ultimate Care UK Ltd, Ipswich, neglected to pay £613.79 to 7 workers
•Century Motors (Sheffield) Ltd, Sheffield, neglected to pay £571.72 to a worker
•Mr D Eastwell & Mr G Brinkler trading as The Salon, Letchworth Garden City, neglected to pay £409.85 to a worker
•Rumble (Bedworth) Ltd, Nuneaton, neglected to pay £404.41 to a worker
•Shannons Ltd, Worthing neglected to pay £313.76 to a worker
•Holmes Cleaning Company, Worksop neglected to pay £240.48 to a worker
•Learnplay Foundation Ltd, West Bromwich, neglected to pay £224.73 to a worker
•Adrien Mackenzie trading as Maverick Models, Manchester, neglected to pay £205.52 to a worker
•QW Security Ltd, Hartlepool, neglected to pay £126.20 to a worker
Workers had made complaints to the free and confidential ‘Pay and Work Rights’ Helpline.
The scheme was revised in October 2013 to make it simpler to report employers who do not comply with minimum wage rules.
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