Comments on: Tackling inequality means tackling tax dodging https://leftfootforward.org/2015/01/tackling-inequality-means-tackling-tax-dodging/ Left Foot Forward is the home for UK progressives. We provide evidence-based analysis on British politics, news and policy. Fri, 06 Feb 2015 05:24:00 +0000 hourly 1 https://wordpress.org/?v=6.9.5 By: littleoddsandpieces https://leftfootforward.org/2015/01/tackling-inequality-means-tackling-tax-dodging/comment-page-2/#comment-702216 Fri, 06 Feb 2015 05:24:00 +0000 https://leftfootforward.org/?p=93139#comment-702216 Came across a massive tax evasion that leaves the workers without being in the welfare state nor able to get a state pension (sole food and fuel money in old age for the poor).

The Truck system has returned with what is called the salary sacrifice system, where firms pay part in low wages and part in expenses (with deductions for admin costs).

Because these workers are then paid not even half the minimum wage, the firms do not pay National Insurance nor PAYE (as below the lower wage limit so nil National Insurance contribution paid and nil credits earned by staff).

Furthermore, some firms even class staff as apprentices, entirely unaware by staff, who have received no further training other than the initial staff induction. And so paid not even a couple of quid an hour.

A tax barrister says this means firms are evading millions if not billions in tax, by utilising what are called umbrella firms (sub contract to sub contract ad nausem).

But by the low paid workers not being in the National Insurance system, they have no benefit nor pension rights in the future.

It seems entirely legal by various loopholes and so evades the abolition of the Truck System by laws passed back in the 19th Century.

As half of the jobs created by 2008 are part time, these folk if in their 50s are heading into nil state pension for life with the flat rate pension.

Today you get a pro rata pension for 1 year NI record.
With the flat rate pension you get nil state pension for 10 years or less NI record.

So has the state pension ended for the poorest workers?

It has ended for me and I worked in a full time job all my life.

See why, under my petition, in my WHY THIS IS IMPORTANT section, at:

https://you.38degrees.org.uk/petitions/state-pension-at-60-now

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By: blarg1987 https://leftfootforward.org/2015/01/tackling-inequality-means-tackling-tax-dodging/comment-page-2/#comment-701790 Sun, 01 Feb 2015 12:08:00 +0000 https://leftfootforward.org/?p=93139#comment-701790 In reply to Keith M.

Many people who know boots tax practices may perceive it as a ringing endorsement to vote for Labour if he comes out with lines like that.

Boots is over a barrel it can;t really leave the UK as that;s where its main income is sourced from, so he is grasping at straws.

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By: Keith M https://leftfootforward.org/2015/01/tackling-inequality-means-tackling-tax-dodging/comment-page-2/#comment-701787 Sun, 01 Feb 2015 11:51:00 +0000 https://leftfootforward.org/?p=93139#comment-701787 In reply to madasafish.

Anyone who evades tax should be penalised.

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By: Keith M https://leftfootforward.org/2015/01/tackling-inequality-means-tackling-tax-dodging/comment-page-2/#comment-701786 Sun, 01 Feb 2015 11:49:00 +0000 https://leftfootforward.org/?p=93139#comment-701786 Cassini head of Boots has a damned cheek criticising Labour, when his own company uses tax havens to evade tax.

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By: davidhill https://leftfootforward.org/2015/01/tackling-inequality-means-tackling-tax-dodging/#comment-701713 Sat, 31 Jan 2015 17:28:00 +0000 https://leftfootforward.org/?p=93139#comment-701713 All political leaders are charismatic and one of the main traits that covers up things like psychopathy. They crave for power above everything else including the people’s overriding wellbeing if it is in their personal interests to do so…and one of the main reason why we have a vast chasm in inequality feeding poverty constantly, and far greater than ever recorded. Unfortunately it is growing without relent and will eventually have dire consequences for the world-at-large.

CONTROL – The Most Powerful Word in the World and What Corporate Leaders and the Political Elite Crave For to the Extent of Being Psychopathic in ‘Their’ Thinking and Actions Against the People – http://worldinnovationfoundation.blogspot.co.uk/2015/01/control-most-powerful-word-in-world-and.html

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By: Leon Wolfeson https://leftfootforward.org/2015/01/tackling-inequality-means-tackling-tax-dodging/#comment-701656 Fri, 30 Jan 2015 20:43:00 +0000 https://leftfootforward.org/?p=93139#comment-701656 In reply to SgtVimes.

Influence? Great Number?
How about the ability to stop it, in the majority of the current ones?

Jersey
Guernsey
Isle of Man
Bermuda
British Virgin Islands
Cayman Islands
London

(And I’m pretty sure I’m missing one, too)

Yes, all but the last would need some form of financial top-up, but the long-term costs to the economy would be far less.

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By: Guest https://leftfootforward.org/2015/01/tackling-inequality-means-tackling-tax-dodging/#comment-701655 Fri, 30 Jan 2015 20:40:00 +0000 https://leftfootforward.org/?p=93139#comment-701655 In reply to madasafish.

Find me the mutualists involved in tax dodging. Go right ahead.

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By: ForeignRedTory https://leftfootforward.org/2015/01/tackling-inequality-means-tackling-tax-dodging/#comment-701648 Fri, 30 Jan 2015 18:22:00 +0000 https://leftfootforward.org/?p=93139#comment-701648 In reply to JohnRich.

Dodging, as in re-routing income so that it only becomes tax-due at a place with zero corporate tax, as in the Bahamas.

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By: madasafish https://leftfootforward.org/2015/01/tackling-inequality-means-tackling-tax-dodging/#comment-701616 Fri, 30 Jan 2015 11:39:00 +0000 https://leftfootforward.org/?p=93139#comment-701616 In reply to Guest.

So where are your mea culpas?

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By: SgtVimes https://leftfootforward.org/2015/01/tackling-inequality-means-tackling-tax-dodging/#comment-701610 Fri, 30 Jan 2015 11:03:00 +0000 https://leftfootforward.org/?p=93139#comment-701610 In reply to Andy.

You could argue that it needs an international response but I think that it doesn’t wash. The UK has the ability to influence a great number of the world’s tax havens such from Jersey to the Cayman Islands to the City of London. Unilateral action wouldn’t have solved it but could have made a difference. I doubt a Blairite government was interested.

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