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AIBU?

AIBU to think 'middle Britain' VAT/Tax dodgers ARE a big problem

83 replies

rottentomatoes · 22/01/2013 10:33

as well as big companies legally avoiding tax and fraudulent benefit claimants. That they are not mutually exclusive and headlines/artcles like this one (link) support middle Britain evading tax on the premise that there are bigger fish to fry.

www.express.co.uk/posts/view/372368/New-tax-raid-on-middle-Britain

AIBU to think it's actually hypocritical that many people dodge VAT/TAX etc but will happily wave around phrases like benefit scrounger or get incensed by large corporations legally avoiding tax.



Disclaimer: I don't read the Daily Express but saw this headline grabber whilst in the newsagent!

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HotPanda · 22/01/2013 19:29

My DH is a self employed tradesman. He gets asked all the time if the price given is a "cash price" he says no, gives them a cash price then says there will be no guarantee to his work. They ALWAYS pay the full price then.

Don't get me started on the bloody bank charges. He gets charged per cheque, and for cash. Only free payment is bank transfers in but not many do that.

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TalkinPeace2 · 22/01/2013 19:45

Hotpanda
FSB account with the Co-OP is free
and FSB membership is well worth it for sole traders

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KatyTheCleaningLady · 22/01/2013 20:03

rottentomatoes

Yes, it does rather suck to be competing against those with an unfair advantage. But, we hope that our very ethical, non-cowboy image will compensate somewhat.

In a few years, we hope to be able to stop cleaning, ourselves, and make money off of the labour of others. I've done the maths: it's not possible to make enough money to live on without charging £20 an hour or so.

This is not to say that we won't be working: we hope to spend our time marketing, recruiting, training, and enforcing quality control. Because people will only pay £20 an hour for cleaning if it's of the highest quality.

In the meantime, we charge significantly more than the "£10 an hour" that so many people seem to think is the standard. In order to justify our rates, we have to give an extraordinary level of service and have the image to convey our standards.

I know a fellow who runs a massive cleaning company in Finland, and who used to run a business in the UK. He thinks the VAT threshold of £70-something thousand a year is too high. He thinks it should be about £2000 or so, so that everyone bears the same burden. I sort of think he has a point.

The truth is, many plumbers, electricians, etc. don't have high enough revenues to have to pay VAT. If they give a cash discount it's just because they don't want to pay income tax.

I can't say I blame someone for not wanting to pay VAT for a cleaner. If they hire a sole operator, they don't have to. I would hope that the sole operators are at least paying all their income taxes.

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Binkybix · 22/01/2013 20:21

I know someone who says he is a socialist, and pontificates all the time about how taxes should be raised etc etc to met the policies he believes in. Including tax evasion AND avoidance by big business.

He's set himself up as a contractor and probably earns well over 100k/year. However he is essentially a direct employee in most of the tests used by HMRC to decide whether he is legitimately a contractor or really just an employee on the fiddle. It's just that the University he works for allows it/isn't aware. So certainly avoidance and possibly evasion.

He's almost boastful about it and I genuinely find it difficult to spend time around him because he will always go on about policy etc (I work for Gvt), seemingly without seeing the irony.

It's really changed how I view him as a person, and is difficult because he's married to my best friend.

I'm with you OP! I secretly hope he gets caught then feel guilty about it

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rottentomatoes · 22/01/2013 20:40

Katy
I understand everything you are saying and wish you all the luck in the world. I used to employ a cleaning company and when I put it out to tender I actually had a quote for an hourly rate less than minimum wage from one company! Needless to say I didn't hire them.

BinkyBix

That is exactly what I was talking about what a great example. Go on make the call Wink

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Binkybix · 22/01/2013 20:52

Oh I couldn't tell on him, although I want to. I'd feel so guilty for my friend and worry what would happen if they found out! It makes me so, so angry though. Such a self-righteous hyporcrite!

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ShellyBoobs · 22/01/2013 21:05

...and FSB membership is well worth it for sole traders

If it's these lot you're talking about, any member can pay or not pay whatever taxes they like, for me. They sound bloody scary!

en.wikipedia.org/wiki/Federal_Security_Service_(Russia)

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TalkinPeace2 · 22/01/2013 21:26
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