Even more powers for HMRC

[ads1980]

Just listening to radio 5 live and Ed Ballsis promising that if Labour get in they will give more power to HMRC in relation to tax avoidance. So how much further can they go?

[NotAllThere]

Just listening to radio 5 live and Ed Ballsis promising that if Labour get in they will give more power to HMRC in relation to tax avoidance. So how much further can they go?

Simple. HMRC will become everyone's employer, and work out for you how much money you're allowed to have each month.

[webberg]

Just listening to radio 5 live and Ed Ballsis promising that if Labour get in they will give more power to HMRC in relation to tax avoidance. So how much further can they go?

Off the top of my head:

1. Ability to raid bank accounts/sell assets
2. Ability to force contractors to deduct tax (like the construction industry several decades ago)
3. Refusal of expenses claims
4. Force information from contractors as to who was paid what
5. Prevent any contractor from having an EBT or share scheme or access to any tax planning
6. Introduce a system of pre approval or blocking
7. Impose a minimum effective rate of tax for all
8. Introduce a pre FTT tribunal that HMRC control and operate
9. Introduce the long promised "anti Ltd" rules
10. More retrospective rules

I'm sure this is not a comprehensive list.

[ads1980]

Off the top of my head:

1. Ability to raid bank accounts/sell assets
2. Ability to force contractors to deduct tax (like the construction industry several decades ago)
3. Refusal of expenses claims
4. Force information from contractors as to who was paid what
5. Prevent any contractor from having an EBT or share scheme or access to any tax planning
6. Introduce a system of pre approval or blocking
7. Impose a minimum effective rate of tax for all
8. Introduce a pre FTT tribunal that HMRC control and operate
9. Introduce the long promised "anti Ltd" rules
10. More retrospective rules

I'm sure this is not a comprehensive list.

So do we think the age of the Ltd company is going to disappear in terms of contracting?

[webberg]

So do we think the age of the Ltd company is going to disappear in terms of contracting?

That might be a premature statement.

It would be very difficult to distinguish between a Ltd co used for contracting and one used for other business? It is however something that HMRC threatened some time ago and if they come under pressure from a new administration to "do something" then pulling this out of the locker is a quick win (for them).

The alternative is to make retrospective legislation on all loan schemes (unpopular and difficult), or perhaps attack the sort of share/option scheme arrangements currently in the market but that is difficult and risks damaging the rewards for "hard working families" (a phrase that irritates me to the point of rage).

Like I say, perhaps too early to say it's the end of Ltd company arrangements, but a new Government desperate for money and playing high stakes poker with "anti avoidance" measures - who knows?

[ads1980]

That might be a premature statement.

It would be very difficult to distinguish between a Ltd co used for contracting and one used for other business? It is however something that HMRC threatened some time ago and if they come under pressure from a new administration to "do something" then pulling this out of the locker is a quick win (for them).

The alternative is to make retrospective legislation on all loan schemes (unpopular and difficult), or perhaps attack the sort of share/option scheme arrangements currently in the market but that is difficult and risks damaging the rewards for "hard working families" (a phrase that irritates me to the point of rage).

Like I say, perhaps too early to say it's the end of Ltd company arrangements, but a new Government desperate for money and playing high stakes poker with "anti avoidance" measures - who knows?

I can't see any limits to which this will stop. And I think it will end up spiralling out of all control. I know HMRC is a bit of a mess at the moment, but it's sort of a controlled mess (and I use that term very loosely). Allowing them even more powers will be a nightmare. I've often been tempted to emigrate and I can see this starting to become a reason why. Just need to make sure it's a country with no ties to the UK.

[SantaClaus]

Just listening to radio 5 live and Ed Ballsis promising that if Labour get in they will give more power to HMRC in relation to tax avoidance. So how much further can they go?

Looks like I will def. be voting "none of the above" then.

[DonkeyRhubarb]

What is always overlooked

On the face of it sounds simple.

People who avoid tax are pure evil, so let's screw them right into the ground. Seize their assets, take their homes, make them bankrupt etc.

However there is an economic cost to this. Yes it boosts the Treasury's coffers but it takes money out of the economy at the same time. Bankrupting lots of people definitely doesn't make economic sense.

People may quit the UK, and many may say good riddance. But they're taking their spending power with them.

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.

[ads1980]

Looks like I will def. be voting "none of the above" then.

If only that made any difference. They all see it as "free money" now that they have to recoup. My local MP has predominantly been a conservative but the Lib Dems have occasionally got in as it's usually quite close. Because of his snotty replies to my letter to him regarding APNs, I will be firmly putting my cross in the Lib Dems box. Not because it makes any difference but because I want that smug t*** out!

[ads1980]

On the face of it sounds simple.

People who avoid tax are pure evil, so let's screw them right into the ground. Seize their assets, take their homes, make them bankrupt etc.

However there is an economic cost to this. Yes it boosts the Treasury's coffers but it takes money out of the economy at the same time. Bankrupting lots of people definitely doesn't make economic sense.

People may quit the UK, and many may say good riddance. But they're taking their spending power with them.

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.

I think the poiliticians are all beyond thinking that way though. They just see numbers being banded around like £x billion and think it sounds as tempting to take as their expenses!