A different tack...
Not so much different as an additional tack...
Everyone I speak to face to face about this cannot believe it. I know that Joe public will see us as tax dodgers when they read an article but why when I speak to anyone are they sympathetic and see it as outrageous. It is because I can explain what the real problem is here without spin and in layman terms. Perhaps we can use it to get friends/families to write to MPs, especially if they are in a particular constituency ?
Anyway this is an email which pretty much outlines the issues in my/layman terms...
Subject: Unprecedented Retrospective law changes are bankrupting individuals. Who is next ?
Hi,
Some very close family/friends/colleagues of mine are being affected by an unprecedented change in the law that has been applied retrospectively. That is to say, something that was legal in 2001 was made illegal in 2008 and applied back to 1987. Thousands of individuals are affected, a lot of whom will be made bankrupt. The worst part is that it was not news in 2008 to the relevant bodies who proposed the change in law. Norman Lamont commented on it in 1987 and its use was known to HMRC since at least 2002.
The change is in the form of Section 58 of the Finance Act 2008, details and commentaries of which can be found in some links below. What is important is that something which was according to the law whilst being carried out is made illegal at a later date, with retrospective affect. On top of this, interest is being charged on the amount now "due", also backdated to 1987. It is this interest which will bankrupt most. It puts the amount owed by many into the hundreds of thousands of pounds. All of these self employed individuals are regular, middle class folk.
The law was passed through parliament as a "clarification" but has since been identified as pure and full retrospection. The time has come where HMRC are demanding the money and there is only a short window to make a change.
The recent Barclays retrospective tax situation was backdated by 3 months, to when the change was first voiced. This is very different to 21 years. Couple that with the fact that this is individuals who will suffer along with their families (not a faceless bank) is a very worrying precedent to set. It will raise the goverment millions of pounds, so the motive seems clear.
What is next ? 20mph Speed limits backdated to 1995 or a 30% lower tax rate backdated to 2005. Watch out for those retrospective speeding fines or tax demands. These are extreme examples but there are many grey areas in between and the law is the law and should not be changed retrospectively to this degree, and without warning.
Many financial, business and humanitarian institutions are at least concerned for the precedent and most condemn it including: Chartered Institute of Taxation, The Joint Committee for Human Rights, The Institute of Chartered Accountants in England and Wales and many more. Even many MPs were opposed to the retrospective legislation and amendments were tabled in 2008 to remove the retrospective aspect but these were ignored.
Please write to your MP as a review is being carried out now. It can be done electronically: WriteToThem - Email or fax your Councillor, MP, MEP, MSP or Welsh, NI, London Assembly Member for free. Feel free to copy and paste most of this note. Those affected would be very grateful and this could work to save you and others from being affected by a similar atrocity in the future. Please, also feel free to forward this on to gain awareness.
Many thanks
BBC News - Will retrospective taxes affect us all?
Jill Kirby: Retrospective legislation may produce applause today but it will damage Britain in the years to come Conservative Home Columnists
http://www.tax.org.uk/Resources/CIOT...OT%20Nov10.pdf - see P8, 7.4.
BN66 timeline : Freelance Supermarket
http://www.tax.org.uk/Resources/CIOT...egislation.pdf
MPs to investigate retrospective tax after government avoidance crackdown at Barclays - Telegraph
Director of Finance Online - Blogs - The Edge » Blog Archive » Backdating tax is bad
http://www.freshfields.com/publicati.../nov08/BTR.pdf
Not so much different as an additional tack...
Everyone I speak to face to face about this cannot believe it. I know that Joe public will see us as tax dodgers when they read an article but why when I speak to anyone are they sympathetic and see it as outrageous. It is because I can explain what the real problem is here without spin and in layman terms. Perhaps we can use it to get friends/families to write to MPs, especially if they are in a particular constituency ?
Anyway this is an email which pretty much outlines the issues in my/layman terms...
Subject: Unprecedented Retrospective law changes are bankrupting individuals. Who is next ?
Hi,
Some very close family/friends/colleagues of mine are being affected by an unprecedented change in the law that has been applied retrospectively. That is to say, something that was legal in 2001 was made illegal in 2008 and applied back to 1987. Thousands of individuals are affected, a lot of whom will be made bankrupt. The worst part is that it was not news in 2008 to the relevant bodies who proposed the change in law. Norman Lamont commented on it in 1987 and its use was known to HMRC since at least 2002.
The change is in the form of Section 58 of the Finance Act 2008, details and commentaries of which can be found in some links below. What is important is that something which was according to the law whilst being carried out is made illegal at a later date, with retrospective affect. On top of this, interest is being charged on the amount now "due", also backdated to 1987. It is this interest which will bankrupt most. It puts the amount owed by many into the hundreds of thousands of pounds. All of these self employed individuals are regular, middle class folk.
The law was passed through parliament as a "clarification" but has since been identified as pure and full retrospection. The time has come where HMRC are demanding the money and there is only a short window to make a change.
The recent Barclays retrospective tax situation was backdated by 3 months, to when the change was first voiced. This is very different to 21 years. Couple that with the fact that this is individuals who will suffer along with their families (not a faceless bank) is a very worrying precedent to set. It will raise the goverment millions of pounds, so the motive seems clear.
What is next ? 20mph Speed limits backdated to 1995 or a 30% lower tax rate backdated to 2005. Watch out for those retrospective speeding fines or tax demands. These are extreme examples but there are many grey areas in between and the law is the law and should not be changed retrospectively to this degree, and without warning.
Many financial, business and humanitarian institutions are at least concerned for the precedent and most condemn it including: Chartered Institute of Taxation, The Joint Committee for Human Rights, The Institute of Chartered Accountants in England and Wales and many more. Even many MPs were opposed to the retrospective legislation and amendments were tabled in 2008 to remove the retrospective aspect but these were ignored.
Please write to your MP as a review is being carried out now. It can be done electronically: WriteToThem - Email or fax your Councillor, MP, MEP, MSP or Welsh, NI, London Assembly Member for free. Feel free to copy and paste most of this note. Those affected would be very grateful and this could work to save you and others from being affected by a similar atrocity in the future. Please, also feel free to forward this on to gain awareness.
Many thanks
BBC News - Will retrospective taxes affect us all?
Jill Kirby: Retrospective legislation may produce applause today but it will damage Britain in the years to come Conservative Home Columnists
http://www.tax.org.uk/Resources/CIOT...OT%20Nov10.pdf - see P8, 7.4.
BN66 timeline : Freelance Supermarket
http://www.tax.org.uk/Resources/CIOT...egislation.pdf
MPs to investigate retrospective tax after government avoidance crackdown at Barclays - Telegraph
Director of Finance Online - Blogs - The Edge » Blog Archive » Backdating tax is bad
http://www.freshfields.com/publicati.../nov08/BTR.pdf
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