Even more powers for HMRC

[StrengthInNumbers]

They should create a new type of limited company for contractors /one person. Which pays say 25% profit tax and can claim limited expenses. The rest is paid as salary tax free.

Something like this will be sooooo gooood but then what will happen to 100s of jobs at HMRC? Let's keep it complicated and armies employed

[webberg]

Something like this will be sooooo gooood but then what will happen to 100s of jobs at HMRC? Let's keep it complicated and armies employed

Take it to the logical conclusion.

There are no tax reliefs, personal or corporate and instead turnover is taxed at 5% flat rate.

No very progressive of course so perhaps a couple of bands.

how long before you think people/companies will find ways to manipulate the turnover?

Once that greed/need demon is loose, all reason and logic is a victim.

[StrengthInNumbers]

Take it to the logical conclusion.

There are no tax reliefs, personal or corporate and instead turnover is taxed at 5% flat rate.

No very progressive of course so perhaps a couple of bands.

how long before you think people/companies will find ways to manipulate the turnover?

Once that greed/need demon is loose, all reason and logic is a victim.

Only if they keep it complicated.
1) limited company can only be paid into bank account.
2) whatever gets paid in - pay 25% as tax and go home with whatever left.
Keep it simple and stupid and it will work.

[Boobetty]

The other laughable thing is that avoidance only represents a small fraction of the total tax gap.

See pie chart on page 13.

https://www.gov.uk/government/upload...e_20141014.pdf

The most laughable thing about this document is that not a single penny of the tax gap has been attributed to HMRC error despite the well publicised problems. And these are just the things we know about - I shudder to think about the things that have been covered up.

Virtually every tax payer has experienced the breathtaking incompetence within HMRC, and the national press enjoy a good poke every so often, yet HMRC don't appear anywhere on the pie chart. Astounding.

[yasockie]

On the face of it sounds simple.

Politicians talk about extracting £xBn from tax avoiders as though the money is just sat around in suitcases under people's beds doing nothing productive.

In reality, it ain't that simple.

Glad someone raised it.
The main thing keeping me here is $$$. And drinking on Mondays.