MP Graham Jones in cash-in-hand tax dodge rap in wake of Jimmy Carr offshore furore (From Lancashire Telegraph)
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MP Graham Jones in cash-in-hand tax dodge rap in wake of Jimmy Carr offshore furore
3:00pm Wednesday 27th June 2012 in News
By Bill Jacobs, Local government reporter
AN MP has attacked the ‘cash in hand’ tax avoidance culture endemic in East Lancashire in the wake of the Jimmy Carr affair — revealing he had personally reported a local tradesman to the authorities.
Hyndburn and Haslingden MP Graham Jones spoke out as celebrities came under fire for dodging tax.
Writing on his website the Labour backbencher said: “Jimmy Carr, Gary Barlow — it’s been quite a week for moralising about tax fairness at the top.
“An awakening Britain finding morality on tax fairness at the top is only part of the picture. For too long avoiding tax has been a cause to celebrate.
“At the last election I made the point in my election address that tax as a three-letter word had blended into an immoral context. I made the point that tax was in reality a contribution to the community, and the language of tax needed to change to redefine the morality of taxation.
“The reality is cash in hand in Hyndburn is all too frequent. In fact, it is endemic. People regularly offer, in particular sole traders, cash for jobs to avoid tax.
"People operate small non-taxed businesses, notably through eBay in their back room.
“I reported a plasterer who I believe had not paid any tax or NI in three years. He had never had a receipt book and saw no need. It was all cash in hand.
“I called at my local garage who told me what I know as a local MP — cash is king, the tax man the enemy. He told me the vast majority of customers offered and expected to pay by cash to knock off the 20 per cent VAT.
"He made the point that if he adds VAT he is undercut by those that don’t and so they bury the VAT in the quote, hopeful that their honesty won’t be punished.
“While the debate swirls aro-und the Prime Minister and the circus of wealthy celebrities caught not paying their fair share, there is a much wider question about the immorality of tax avoidance full stop.
"HMRC estimate some £35 billion of tax is uncollected and some estimate undeclared tax many times that amount.
“We shouldn’t laugh along with those that celebrate paying less tax, we should look in disdain.
“As I said to my mechanic, the irony is that those avoiding tax will be those that shout the loudest if they or their loved had to be denied expensive cancer treatment because of NHS cutbacks.”
Comments(19)
owdman
says...
3:27pm Wed 27 Jun 12
workaholic
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3:40pm Wed 27 Jun 12
notchuffed
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3:53pm Wed 27 Jun 12
owdman wrote:Thank you "owdman". It's not just the tax burden but also the so called"elf and safety wallahs along with the red-tape that is manacling our businessess.
Well said, notchuffed. Too many MPS, including PM, moralising but in practice, well to do. Get real and sort out the Benefit Cheats, then maybe we can get the economy sorted out, by REDUCING the tax burden on workers and businesses.
Why do we continue to plough billions into the wasteful Eurozone when a fraction of what we are expected to pay, would re-vitalise the British economy.
Taking everything into consideration being in Europe costs us; I don't just mean the 'subscriptions'. I am talking about the hidden costs a) Having to kow-tow to HR.
b) All the grifting lawyers working on this.
c) Forced to comply to inane European Laws in respect of employment and much more.
d) The cost of Euro MPs and their over inflated, over-claimed expenses
Add above together, then look at what we get back or sell to Europe. It will soon be proved that we sell more to countries outside Europe and buy much more from Europe.
Further consideration are in form of questions
i) Will France stop selling UK Champagne and Brandy
ii) Will Germany stop selling us Mercs, BMWs and Volkswagens if we are no longer in Europe
BIG MYTH EXPLOSION; When Europe give us so called "Regional Grants" they are giving us nothing because it is simply our own money we are being given a pittance of after Europe has had it's snout in the trough.
Politicians manufacure or create NOTHING except mahem, discontent and worse of all War.
To my eternal shame I voted Yes to Europe in the belief it was just to be a Trading Zone not a back door enry for Germany to subjugate us.
Time the Lily Whites at Westminster listened to the people they are supposed to represent and offer an "In" or "Out" referendum. They will receive a resounding "Out" answer.
"Simples" yes? Answer NO because modern day politicians are career ones, looking out for themselves with no worldly experience or desire to help their fellow creatures - only themselves.
P.S. Sorry for lengthy tirade
A Darener
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4:00pm Wed 27 Jun 12
thresholdweller
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4:10pm Wed 27 Jun 12
A Darener wrote:The Government doesn't benefit. Tax pays for the services that we all receive. Each time someone avoids paying tax, all other tax-payers have to pay more or accept reduced services. HMRC should be asking the question "How do you pay for your lifestyle?" A satisfactory answer results in "Thank-you." But, there are people driving in new cars, with the latest electronic devices, Sky, foreign holidays etc on declared incomes under £25000. The figures don't add up.
I personally don't begrudge paying my dues on most items. What I do object to is paying tax on services/goods that have to be done as a result of damage or illness or accident. E.g. VAT on services to repair burst pipes, flooding, roof repairs due to weather damage, etc. why should the government benefit from our misfortunes.
If some can see others getting away with it, they try as well. Result - we all suffer.
Izanears
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4:12pm Wed 27 Jun 12
So although tax was avoided one way, the economy benefited.
A Darener
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4:17pm Wed 27 Jun 12
thresholdweller wrote:Appreciate what you are saying but reiterate my point why should the government benefit from my misfortune? By the government I mean other people.(the government have no money). I am quite prepared to pay more for "luxury goods" just like we used to with higher rate purchase tax. If you want luxury goods then pay more tax on them. We should not pay tax on necessities.
A Darener wrote:The Government doesn't benefit. Tax pays for the services that we all receive. Each time someone avoids paying tax, all other tax-payers have to pay more or accept reduced services. HMRC should be asking the question "How do you pay for your lifestyle?" A satisfactory answer results in "Thank-you." But, there are people driving in new cars, with the latest electronic devices, Sky, foreign holidays etc on declared incomes under £25000. The figures don't add up.
I personally don't begrudge paying my dues on most items. What I do object to is paying tax on services/goods that have to be done as a result of damage or illness or accident. E.g. VAT on services to repair burst pipes, flooding, roof repairs due to weather damage, etc. why should the government benefit from our misfortunes.
If some can see others getting away with it, they try as well. Result - we all suffer.
woolywords
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4:20pm Wed 27 Jun 12
Way back during Harold Wilsons time, Lord Kagan was dodging tax and cleared off out of the country to avoid arrest. Even Lord Vestey, friends to the Royal Family, of the Dewhurst butchers and currently seeking compensation from Hugo Chavez's Gov't, has dodged the old revenue. You don't get to be worth £650Millions by paying everything that you morally should.
Going after Bob the Builder is small beer when compared to what these ruffians have managed to salt away from the prying eyes of the taxman.
RUinsane
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5:09pm Wed 27 Jun 12
I'm still amazed that Cameron can take office being a member of the royal family. Isn't the government supposed to be free from influence of the monarchy?
Good call
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7:39pm Wed 27 Jun 12
fabinribblevalley
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7:46pm Wed 27 Jun 12
workaholic wrote:Yes but nothing to worry about only about 99% are dishonest. Funny you mention taxi's and take aways. I'll leave that for you to work out what I might mean
The reality is that many people choose an occupation simply because it is a cash based business so that they can under declare their earnings. Take Taxi Drivers and take aways. I am not saying that all of the proprietors of these businesses are dishonest but a great number are - and under-declare their actual turnover (unless the business is set up as a money laundering enterprise - in which case the books are cooked in the opposite direction i.e. over declaring!)
fabinribblevalley
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7:50pm Wed 27 Jun 12
accy lad and proud
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10:14pm Wed 27 Jun 12
ste.g
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10:47pm Wed 27 Jun 12
check out the other stories jones before you pick on the small fry.
this is where it would make a difference so what you going to do about it????
Judge Nic Sanders
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8:31am Thu 28 Jun 12
Most people need it to travel to work,to pay for their lunch and to pay daily bills we are saddled with,
unless your on expenses of course.
I do think though that small businesses like car repair shops are overloaded with red tape and then have to add 20% Vat will drive them to the wall.
The 20% should be the issue here.
Elegant1
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6:38pm Thu 28 Jun 12
The wealthy believe in slashing benefits to the needy, while they rort the system with all their tax avoidance schemes and pay as little as 1% of their income in tax. It is also wrong that they get away with it too. If we all payed our taxes, and I mean all, the tax burden and fuel tax burden could be reduced.
Tax should be collected up-front from everyone due to pay. It should be collected on the 1st of April each year with no exclusions.
Those of you decrying the effforts of Graham Jones in him calling for tax avoidance measures are the deluded one's who need to "Wake up and smell the coffee" Get real!
Good call
says...
8:47pm Thu 28 Jun 12
Elegant1 wrote:Im for one am not decrying his efforts I thank him for speaking up ,but he is going at the wrong people.Some self employed person doing jobs cash in hand isn't the problem big corporations and mega rich aggressively avoiding tax are.
CIH has been with us for a long time, that is true. Along with the many other scams. This is but one reason why this country is in its present state. VAT has to be paid. This type of fraud is rife, and worse than that, it is accepted as being reasonable! It is not!
The wealthy believe in slashing benefits to the needy, while they rort the system with all their tax avoidance schemes and pay as little as 1% of their income in tax. It is also wrong that they get away with it too. If we all payed our taxes, and I mean all, the tax burden and fuel tax burden could be reduced.
Tax should be collected up-front from everyone due to pay. It should be collected on the 1st of April each year with no exclusions.
Those of you decrying the effforts of Graham Jones in him calling for tax avoidance measures are the deluded one's who need to "Wake up and smell the coffee" Get real!
Elegant1
says...
10:17am Fri 29 Jun 12
Good call wrote:What you say is exactly my point. It is of little use trading one section of the community off against any other. People will always try to avoid paying taxes. It is akin to a national sport in IMHO but it is not right. If the tax rate is 30% then that is what should be paid by all.If anyone has a legitimate claim then fine! If the wealthy say 30% of £1m is far greater than 30% of £250 of course he is right. I would wager that the man on the lower income would gladly pay 30% of £1m and be thankful that he had retained 70% of the £1m.
Elegant1 wrote:Im for one am not decrying his efforts I thank him for speaking up ,but he is going at the wrong people.Some self employed person doing jobs cash in hand isn't the problem big corporations and mega rich aggressively avoiding tax are.
CIH has been with us for a long time, that is true. Along with the many other scams. This is but one reason why this country is in its present state. VAT has to be paid. This type of fraud is rife, and worse than that, it is accepted as being reasonable! It is not!
The wealthy believe in slashing benefits to the needy, while they rort the system with all their tax avoidance schemes and pay as little as 1% of their income in tax. It is also wrong that they get away with it too. If we all payed our taxes, and I mean all, the tax burden and fuel tax burden could be reduced.
Tax should be collected up-front from everyone due to pay. It should be collected on the 1st of April each year with no exclusions.
Those of you decrying the effforts of Graham Jones in him calling for tax avoidance measures are the deluded one's who need to "Wake up and smell the coffee" Get real!
Greed is the problem and it is deep rooted at all levels of society. The system that allows fraud on any scale is wrong and should be fixed urgently. It should also be less complicated. That would make it harder for anyone trying to fraud on a grand scale.
notchuffed says...
3:14pm Wed 27 Jun 12
CIH has been with us since the Noah was a lad. People trying to do a fair day's work, try to get their money after they have finished and at same time act as UNPAID Tax Collectors whilst wondering if they WILL get paid for the job because of the added 20% is bound to increase cash payments.
Look inwards at the over claiming of expenses which is tax free at Westminster, sort it out there along with all the fraud in Brussels you might get then get some Brownie points you are trying to achieve.
Your naivety along with most MPs and Euro MPs in expecting Greeks to suddenly say "Oh my goodness I think we should now start declaring our earnings and pay full tax"
So called "In the Mix" politicians who lack so much street credibility is a major reason for people's apathy towards voting etc.
As the say "Smell the Coffee" and get in touch with reality