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You think Brexit is a mess? It’s the same with UK small business tax. A mess!

Thursday, July 18, 2019

There seems to be a new way to spell ‘incompetent.’ It’s now spelt ‘HM Revenue and Customs.’ That’s the title of the UK tax authority.

The new spelling of ‘incompetent’ is justified given the way HMRC have grossly botched up the handling of self-employed tax in the UK since 2000. We’ve put together the story which we find quite gobsmacking.

It’s a simple issue.

In the UK, businesses have to pay NI (National Insurance) tax of 13.8 per cent on people they employ. But if they use self-employed people, the businesses don’t pay the tax.

HMRC say this is causing revenue loss. HMRC’s solution is to impose the tax on self-employed people. They do this by trying to declare self-employed people to be employees.
Further, in 2017 large numbers of self-employed people in the UK public sector got caught up in dodgy but legal ‘loan schemes’ promoted by the public-sector authorities. Now HMRC has been trying to bankrupt self-employed people for taking part in the schemes. More mess!!!

The UK House of Lords conducted an Inquiry into HMRC’s behaviour. The December 2018 report heavily criticised the HMRC saying,
“HMRC appears to be prioritising recovery of tax revenue over justice by targeting individuals.”
Yes, the issue is about justice which is what ‘rule of law’ democratic countries are supposed to be about!

So what has the UK government been doing? Frankly, it has been pulled down this unjust path by HMRC like some half-wit cow with a ring through its nose. We assume it’s been a ‘but what about the revenue, Minister?” HMRC tactic!

There’s to be a new UK Prime Minister soon who will supposedly lead the UK out of the Brexit mess. The PM should also look to clean up this HMRC-created mess. If the UK is to survive Brexit, it needs all economic guns firing. Screwing over the self-employed only shoots the UK in the economic foot.

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