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Casual Btl Vs Hmrc - Tax Demands Dating Back Six Years To Come

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http://www.telegraph.co.uk/finance/personalfinance/8099995/Workers-face-tax-demands-dating-back-six-years.html#dsq-content

Millions of working households face new tax demands after HM Revenue & Customs said it was looking into cases dating back six years.

A Government aide said: “These are legacy cases that built up in the last decade when Gordon Brown and Ed Miliband were running HMRC. The previous government's policy was to simply ignore these cases every year and let them build up. The coalition’s policy is to actually deal with them which is what we are doing.”

:ph34r:

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http://www.telegraph.co.uk/finance/personalfinance/8099995/Workers-face-tax-demands-dating-back-six-years.html#dsq-content

Millions of working households face new tax demands after HM Revenue & Customs said it was looking into cases dating back six years.

A Government aide said: “These are legacy cases that built up in the last decade when Gordon Brown and Ed Miliband were running HMRC. The previous government's policy was to simply ignore these cases every year and let them build up. The coalition’s policy is to actually deal with them which is what we are doing.”

:ph34r:

Which is balls because everybody knows HMRC hasn't got the man power or resources to investigate more than 0.025% of the population at any one time. Unless they start to make accusations and point fingers at people and demand that people prove their accusations wrong :o

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Which is balls because everybody knows HMRC hasn't got the man power or resources to investigate more than 0.025% of the population at any one time. Unless they start to make accusations and point fingers at people and demand that people prove their accusations wrong :o

They have computerised records of everyone's income. It is trivial to find out who has not paid enough tax on income paid through PAYE, and demand that they complete a tax return. This is easily done on an industrial scale, and I am amazed the previous government did not bother. You are right that it is time consuming to investigate tax evaders, but in this case the whole process can be completed by a computer, e.g. just by changing the tax code if the HMRC are not interested in collecting tax on income they don't know about. I wonder just how screwed tax collection must be in Greece if this counts as a civilised country.

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The lowest estimate for Lettings is about £142 Million missing in Tax in the year 2004-2005 (only considering people on PAYE making a bit on the side)

Not that they would consider themselves as doing anything wrong, BTL is an investment.

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“These are legacy cases that built up in the last decade when Gordon Brown and Ed Miliband were running HMRC. The previous government's policy was to simply ignore these cases every year and let them build up.

...another example of Labour waste ..lack of ethics and total disregard for the basics of civilised society ....they should be banned from politics.... <_<

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Labour failed to understand that unless you clamp down severely on benefit cheats then the system effectively breeds new benefit cheats who learn how to get away with it and are reassured that they can.

The same happens with tax... many a reasonable person if you told them that the Govt data didn't tie up and they could possibly get away with all sorts of non-declarations might try it, and as years go by and more and more get away with it the more it becomes the norm... greece has a huge problem in this area.

Just as a small example... PAYE they should be able to get straight but can't seemingly.... do you think they know who has received what in dividend payments or in bank interest payments, or in cash gifts, or from rental of their properties. Do you think they know who owns what property even and how much rental should be declared no is the answer to many of these things.

Thats before you even get into for instance the probable 300,000 that mis-declare self-employment and therefore get away without paying NI, those funnelling payments for contract work through companies to their families in odd ways etc etc etc.

We need a clearer tax system and whatever it turns out to be it needs to be enforcable and enforced....... if we continue to have a complex system, we'll continue to have loopholes and the longer that goes on the more the culture of not paying tax will becoem entrenched.... simple , perhaps lower tax levels an systems might actually end up collecting more in revenue.

Of course you should never have a tax system you cannot afford to enforce which is what we have currently

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Of course you should never have a tax system you cannot afford to enforce which is what we have currently

We can afford it. It's just that cutting revenue staff is an esay way of saving money (in the short term) without cutting "front line services"

tim

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They have computerised records of everyone's income. It is trivial to find out who has not paid enough tax on income paid through PAYE, and demand that they complete a tax return. This is easily done on an industrial scale, and I am amazed the previous government did not bother. You are right that it is time consuming to investigate tax evaders, but in this case the whole process can be completed by a computer, e.g. just by changing the tax code if the HMRC are not interested in collecting tax on income they don't know about. I wonder just how screwed tax collection must be in Greece if this counts as a civilised country.

Not paying taxes in Greece is a national sport. Most SE people probably pay none at all.

tim

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I wonder just how screwed tax collection must be in Greece if this counts as a civilised country.

I read somewhere on HPC forum that Greek government officials have unofficially aditted that they were effectively collecting no tax at all. Nada. Zip. Dick. Buttkiss.

I would guess that the burning down of the Greek tax records office didn't help much, especially as the Greek tax system was non-computerised.

I suspect that in a few months it will come out that after the destruction of the records they've simply been stalling, trying to make sure no-one finds out they have no way to collect tax, while trying to come up with a solution. Once they admit officially that they can't collect any tax the whole coutry is toast and even the IMF will walk away.

Even if the government comes up with new taxes that are easier to collect, there will probably be an all-out civil war, with those that actually PAID their taxes refusing to pay again unless those that didn't are forced to cough up first.

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Im missing the bit where BTL is mentioned. More wishful thinking?

BTL isn't anythign special, it's just an income stream that is taxeable like any other.

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At risk of sounding all Injin...

Why on earth are you applauding extortion and theft?

Do you like having a gun put to your head and a c0ck shoved down your throat or up your bum constantly? Because this is what tax essentially is. But you seem to enjoy going pink sock so often!

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BTL isn't anythign special, it's just an income stream that is taxeable like any other.

self employments and income derived from your own means is special because you can fiddle your expenses on them. Last year there was a huge number of CIS contractors (who were not contractors anyway as they worked for one company and were disgusied employees) all fiddled their expenses. A common one was to claim mileage @ 40p a mile AND also to claim car servicing costs for their commutes to a single work place.

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Thats before you even get into for instance the probable 300,000 that mis-declare self-employment and therefore get away without paying NI, those funnelling payments for contract work through companies to their families in odd ways etc etc etc.

Have you heard of Class 4 National Insurance. Look it up and then perhaps you would care to restate your assertion that self employed individuals get away without paying NI.

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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