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.....