Inland Revenue New Charm Offensive-Persecuting Small Business
Many people will have seen the commons select committee into tax avoidance/evasion by large well known Corporations. The chairwoman did a very good job of getting CEO's to explain their tax policies. Some companies paying very little or no tax. So the UK tax for many these corporations is voluntary. In fact some wealthy individuals negotiate how much tax they pay. I think this option should be made available to all of us. Somehow I think the inland revenue will not accept you
paying tax on a voluntary basis.
Estimates vary between £5-£25 billion tax avoided by mostly large well known businesses and wealthy people. The criticism of the Inland Revenue in failure to collect this tax has spurred them into action.
Now you would think they would go after these large corporations, NO they have decided to go after the small business sector,taxi drivers,shop keepers,take-away owners etc. The reason is simple small businesses
cannot defend themselves,because they cannot hire expensive accountants and Lawyers to represent them,unlike the large corporations
The Inland Revenue will spend say £10,000 investigating and perhaps collect £2000 from a small business. A tax consultant who use to work for the inland revenue on you tube says that investigating very small businesses is a waste of time and money,of tax payers money.
This begs the question why they do it. My personal view it makes the figures look good,So many businesses investigated,we are doing our job. The Treasury Minister can stand in the house of commons rattle of a lot numbers to make him/her look good.
By persecuting small businesses the Inland Revenue will simply create problems for itself in the future. Any small business that has been persecuted,will in future will do its best to avoid this happening again.
So what we have is 'Diminishing Returns',at first the inland will collect more tax only in future to collect less tax.
What is needed is a fairer tax system where those who earn the most pay the most,unlike the system now those who should pay the least pay the most which at the moment is considered a fair tax system
I doubt very much if the inland revenue will be taking on Big Business,so the Tax Extortion authorities will continue to persecute small business,the easy soft option
I have a friend who is a District Tax Inspector,he wants to investigate big business with a team of 25 people. He is prevented from doing so by his bosses. You can work out for yourself why?.
Kind Regards- the persecuted