Tuesday, 5 January 2010

Bless 'em!

New ways to stop people from entering the hidden economy and to help people out of it will be examined by a newly formed group of experts.

Politically correct experts too...hidden economy? - what we used to call the Black Market! New ways to 'stop people entering the hidden economy'? Like locking up everyone unemployed 24 hours a day? And 'helping people out of it' - you make it sound like something they might welcome being rescued from! Believe me, they won't!

The Hidden Economy Advisory Group is formed from independent experts and chaired by HM Revenue & Customs (HMRC) to take a fresh look at what can be done to reduce the hidden economy.

Lower overall taxes? Cut the red tape involved in starting up a fledgling business? Stop making benefits so attractive that people can't afford to let go of them?

Mike Eland, chair of the group and Director General of Enforcement and Compliance in HMRC said:

“We estimate that the hidden economy contributes to around 7.5% of the net tax gap, which means we could be losing in the region of £3bn a year from people who are living and working in the hidden economy. They also gain an unfair competitive advantage over businesses that pay their taxes.

You think its as low as that? Really?

This new group of experts with a variety of experience will identify new practical steps to tackle this problem.”

“By understanding the behaviours, attitudes and circumstances of those working in the hidden economy, we will be able to identify the right mix of incentives and deterrence to encourage them to move into the formal economy and stay there – even when times are tough”.

Oh Bless 'em! We have a mountain of debt, and you think you just need the right 'expert' to figure out how to persude someone who has so far outsmarted you to give you damn near 50% of what they earn? Who are these experts?

The members of the Hidden Economy Advisory Group are:

  • Professor John Hasseldine, Tax Research Institute, Nottingham University Business School
  • Paul Webley, Professor of Economic Psychology, School of Oriental and African Studies
  • Andrew Cave, Head of Policy, Federation of Small Business
  • Aaron Barbour, Head of linksUK (interim), Community Links
  • Representatives from the Department for Work and Pensions and Local Government will attend the Advisory Group as observers.

And these wonks are going to get inside Wayne and Abdullah's head and figure out how to get them to cough up half the takings from the Boot Market? In your dreams....

The Advisory Group will

  • examine the main barriers to someone in the hidden economy joining the formal economy, and recommend workable measures that might be introduced to remove or reduce those barriers

Try promising not to snaffle half of what they earn?

  • examine the motivations and behaviours that lead people to join the hidden economy, and make recommendations as to what HMRC can do to prevent and stop this.

Drop the tax rate - which bit of 'don't want to give you half our money are your experts struggling to understand?

The new Hidden Economy Advisory Group was announced as part of the 2009 Pre-Budget Report. It will present initial findings in time for Budget 2010.Government Press Release.

They are so sweetly naive, I feel quite motherly towards them, they shouldn't be out on their own in this weather.....


Anonymous said...

URL doesn't work
Here's the correct one

Shaun said...

"You think its as low as that? Really? "

No kidding. The UK's cannabis market alone is worth 6bn pa and I'm guessing that not too many people are paying tax/ni on *those* earnings!

strongholdbarricades said...

How much will it cost to collect?

418 said...

If it's "hidden" how are they going to look into it? Wankers. And why has this state of affairs been allowed to go on for so long if it is costing so much? My advice is to ignore HMRC written enquiries: bin them; if they phone you up and say, "But we wrote to you" then you ask if the envelope was handwritten because if it wasn't you would have binned it unopened. If you have to file a tax return, never file online: HMRC love it when you sit at your PC and type in all your data instead of making the tax inspector do the chore. If you do file online, make sure you only do so every other year and really maim HMRC's ability to analyse your affairs: it's not quite as good as being a Freeman but just one of a number of small ways in which you can fight back.

Scumbags Out! said...

The regular economy is going to be even more fucked due to another week's global warming from Siberia. Those old tax reciepts are going to take another hit and many businesses operating on the margins of viability will inevitably close. Fuck!!

mrs narcolept said...

They are already trying to make car boot sale organisers register details (car registrations as well as other details) of everyone stalling at their events. If you do more than one a year you are at risk of being classified as a trader, unless you can prove your stock is all personal possessions and not bought for resale.

microdave said...

But if they cut taxes, and scrapped red tape there wouldn't be a need for
"This new group of experts"

Got to keep the gravy train rolling along....

thelunaticarms said...

Why don't NuGov just take ALL our wage and give us Government backed credit cards with a £250 limit per day?

If we're going to go for broke, we may as all benefit from new TVs and mistresses.

genabric said...

Is this an admission we passed the zenith of the Laffer Curve some time ago?

Yet still the muddle headed, arse first, cock waffles get it wrong - the black economy has grown as the weight of the state has grown. Shrink the state and you'll shrink the black economy. Can't even bring themselves to call it what it is - the black economy.

Their naivety (and my bad spelling?) is glaringly obvious. Were anyone in Westminster living in the real world this Hidden Economy Advisory Group would never need setting up as people in Government, in the Civil Service and in Parliament would know all about it. The expenses scandal shows they know all the wheezes so might they just be going through the motions to look busy?

If you assume we have passed the peak of the Laffer Curve Government actions to raise taxation will have the opposite effect. Unfortunately for us even Dave doesn't grasp that one.

Atheist Ranter said...

Another fucking quango to feed with our money while they talk about the obvious.

Just heard on the news that another labour twat is stalking the snot gobbler. Good news I suppose but what is better on your doorstep, dog shit or pig shit?

Ron Broxted said...

In the process of applying for dream job as a drag queen at a local working mans club. Hope I get it, think of all those rough horny hands on my fishnets.........Oooh matron

Ruth said...

Well, if they'd stop protecting the intelligence services from setting up people in excise/VAT carousel frauds and nabbing the proceeds, we'd have a hell of a lot more money in our pockets.

GCooper said...

Look on the bright side. At least we have some names to add to The List now.

Come the revolution...

AP said...

The avoidance system only works if they know you exist. I have an old uncle who has never paid any tax ever because he never got into the tax system, he uses a company registered in another country to trade. He wants to retire soon, but he has no pension or anything else which is a bit of a downside.

Of course once the Revenue have your number you are screwed, ignoring letters doesn't work, they are deemed delivered once posted. And then there is the retrospective tax legislation and even when you obey the rules to the letter to your advantage the Revenue will say you are cheating and apply the rules in a way that suits them and screws you.

Anti Money Laundering rules are really there to track your income for the Revenue, even your accountant may have to report you for cheating.

So what are the options? Vote? Leave? Give Up and throw yourself on the State?

The government needs to be very careful, previously when they imposed showcase punitive tax rates they made it easy to dodge and the actual rate people paid was bearable, now with the 'high compliance' rates the taxpayer takes the whole burden of pain without relief, and there comes a point where enough is enough. Without options, people will create options. Of the pitchfork variety.

418 said...

We'd better start to organise some Tea Parties: that'll show'em! See: http://en.wikipedia.org/wiki/Tea_Party_protests

Anonymous said...

The leadership of HMRC have long had arrogance written through them like "Blackpool" through a stick of rock.They can't collect ordinary tax due never mind the the black economy. If the thugs and murderers of Soviet Russia couldn't stop it, what do these clowns think they will achieve?.

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