Shorfall In Tax Take Looming
Discussion
Not really seen anything in the news about this recently. Fuel prices have fallen so much that based on 2013 figures where consumption was estimated at 34 billion liters the tax take from the duty on fuel will have fallen by £1.7 billion over a year. The tax take per liter has fallen by about 5p. Not a massive shortfall as it's just under 1/2% of the predicted tax take but it does beg the question of how the current and next government are going to fill it.
Tannedbaldhead said:
A huge problem the govt is facing is the number of part time jobs in the workplace. Many large retailers, warehouses and distribution centres are paying three part timers to do a shift one full timer could do. Their motovation is that if they keep an individual's hours worked and pay low enough thet don't have to make an employer's national insurance contributions.
The result of this is what headlines as the economic miracle of three created jobs is merely one. The next problem is all three individuals will be below tax and NI paying thresholds, on employers' NI contribution is paid and if the part-timers have families substantial in work benefits will be paid out financed by us the taxpayers. The profits generated by these policies and the huge salaries and bonuses generated by these policies will then be subject to aggressive tax avoidance keeping the govt short of the tax take it needs.
To be fair you also have the company directors who pay themselves a minimal salary so their class 1 NI contributions qualify them for things like JSA and then take the rest as dividends. It's a bit of a piss take really.The result of this is what headlines as the economic miracle of three created jobs is merely one. The next problem is all three individuals will be below tax and NI paying thresholds, on employers' NI contribution is paid and if the part-timers have families substantial in work benefits will be paid out financed by us the taxpayers. The profits generated by these policies and the huge salaries and bonuses generated by these policies will then be subject to aggressive tax avoidance keeping the govt short of the tax take it needs.
turbobloke said:
That's one not particularly representative outlook on the benefits side, what are the costs? Both are needed to form a cost-benefit analysis.
In the context of the thread and recent posts, where people are supposedly coerced but in reality aren't, consider also small business owners, and how many opt for sole trader status as opposed to being a Director of a ltd co they set up.
Were you thinking of expensive BBC presenters, trendy lefty comedians and the like, as opposed to the typical small business owner?
Costs to who? The directors win both ways. Their company makes less contributions and they can award themselves higher dividends. Not sure what the theoretical amount lost by HMRC is. It's a pretty common tactic in small companies though. One I have been very tempted to do myself.In the context of the thread and recent posts, where people are supposedly coerced but in reality aren't, consider also small business owners, and how many opt for sole trader status as opposed to being a Director of a ltd co they set up.
Were you thinking of expensive BBC presenters, trendy lefty comedians and the like, as opposed to the typical small business owner?
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