Tax doesn't have to be taxing, it does need paying though.

So, Tax then.

A complex beast and David Cameron’s not paid any of it.  At all.  Ever.

At least according to some numpties on Facebook.

Let’s just break this down a little, my Pedigree Chums.

David Cameron is a Civil Servant, as such, Civil Servants are paid as employees and are therefore subject to PAYE.

For those who don’t know what that means, it’s simple: Pay As You Earn.

Tax is AUTOMATICALLY deducted from your weekly / monthly salary if appropriate, you do not have a say in it.  Prime Minister or not.

He’s not paid in cash in dodgy envelopes or briefcases on a weekly basis in a café in Kensington.  No, believe it or not his salary goes into his bank account directly.

Like mine.

And no doubt yours.

And all other Civil Servants.

And NHS staff.

And teachers.

So it turns out he has paid tax after all.  Funny that.

NOW, this is where things can get murky.  If he has extra income from other organisations etc. then he needs to declare that, as we all do.

Remember that time you put up a new fence for someone on a Saturday and they paid you for it, in cash, did you declare it or did it just go in your sky rocket?  Never happened that job, did it?

Remember that time when you did the hair of 3 women on a wedding day?  The salon you worked for, as an employee, doesn’t open Saturdays (sounds like a shit salon but bear with) and you went round to a friend-of-a-friend-of-a-friend’s house to style 3 women’s hair.  Got paid in cash, £60 wasn’t it?

What happened to that money?  Put it away to give to HMRC didn’t you?  You what?  Blew it on weed and vodka? Ah, right.

We have ALL been there and done “foreigners” out of work and not declared or paid tax on it.

When I say “done foreigners” I don’t mean in a Jack the Ripper type of way, either.  (For once)

Firstly, I’m no accountant or tax expert, what I do have though is a brain and an unwillingness to believe everything that Facebook or particular parts of the media with an agenda tell me, without question.

Secondly, and probably the most importantly, I am no apologist or supporter of David Cameron, the media has clearly gone for the jugular with his Father’s financial affairs and if HE was supposed to pay some kind of tax and didn’t then that cannot be Cameron’s fault.

It doesn’t matter who is in the spotlight, the facts have to be correct, not twisted by the media to serve themselves.

Tell me FACTS and I will believe.

There is no question that David Cameron has probably “avoided” paying tax on something.  But do not confuse “avoidance” and “evasion”.

They’re one and the same”, I read one clampet claim.

No they’re fucking not, I tell you.

The Government provides us ALL with a means to avoid paying taxes, for example with things like ISA’s.

And the Income Tax threshold – this year’s threshold means the first £11,000 of your income is tax free.

Want to ensure that everyone pays their way?  There’s a few ways but they’re not 100% reliable.

You could, as was mooted by George Osborne, force those who work as contractors (and therefore self-employed) to become actual employees of the company they are working for.  That way they would be subject to PAYE.

What about the average Joe the handyman though?  Might not have regular work, does jobs here and there.  Should we not trust that he would be honest enough to pay his way if he earned more than £11K PROFIT a year?

There are so many pitfalls to it, which is why we’re all trusted to pay when we should.

Incentives and loopholes exist, and people simply make use of them.  Don’t we all make use of some loophole somewhere? 

If it’s not illegal then what’s the problem, in all honesty?

Close the loopholes if they shouldn’t be used, it really is as simple as that.

There are however, much bigger fish to fry with regards tax.  The businesses paying little to no tax at all.

I’m not talking about “Big Baps” butty shop or “Honest Bob’s car Sales”, I’m talking about the major players across the globe.

Without wanting to jump on the major players bandwagon, the likes of Google, Amazon, Facebook etc. are paying hardly any tax in the countries they’re supposed to.

This is because they’re paying it in the country they are registered in.  Why do you think people like Dell moved their HQ to Ireland?  Because the Corporation Tax there is less than where they were previously, not because they have a penchant for Guinness.

Again, is this avoidance or evasion? 

Until the world can come together and agree on a standard tax format across the globe then things won’t change, how can it?

There are corporations out there making an absolute fortune without paying to the country they’re selling to.  Vodafone is a classic example.

So, what do we do about it?  Do we charge corporations for each item they sell in the country they sell to?

For example, a percentage of a UK Vodafone bill goes to HMRC therefore ensuring corporation tax has been paid.  Now, there will be an argument here that says that tax is only payable on profits, which is true so how do you know that Mr Jones’ bill included profit?

Short answer, you don’t.

Tax is such a complex and comprehensive animal that it is so difficult to tackle.

In mitigation of these firms who people claim no tax has been paid, if you’re employed by them and paid by them they WILL have paid Employers NI contributions.

Work for Facebook UK?  Paid by Facebook UK?  On PAYE?  If you’ve paid NI then you can guarantee they’ve also paid NI on your behalf.

I know it’s not the same as paying the millions or billions they ought to be paying in Corp Tax, but THEY are paying something – which has to count for something.

However, I am hugely in favour of big companies being put under pressure to pay their way.  How can Vodafone, Amazon et al get away with paying little or no Corporation Tax?  It is a huge problem that needs addressing.

And it’s not my fucking job. 

Copyright © 2000-2017 Monkey on Toast. All rights Reserved.