So, now the EU has ordered an inquiry into the 'gig economy' in the UK which causes a tax shortfall for the exchequer of billions of pounds each year.
It seems that a number of self-employed workers pay little or no tax and the companies who provide them with work avoid NI contributions under existing legislation. Additionally, the income figures claimed by these individuals entitle them to fairly high levels of benefits from the state, so all in all, permitting them flexibility in their working hours to provide a work/life balance to suit their requirements.
....Oh wait! Did I say the EU? Silly me! It's the tory government I meant to say. They have reluctantly been forced to address the issue on account of hugely reduced receipts at the treasury, commensurate with the growth of entrepreneurial business start-ups, bringing innovative employment features to the market place such as unpaid apprenticeships, zero hours contracts and compulsory training paid for by the job applicant prior to engagement.
Perhaps it's just me being cynical but I can't help but feel that a proper, forensic examination of the finances of the members of both the Commons and the Lords would identify many areas where millions of pounds could be re-directed to treasury funds. That's before they even begin to crack down on the tax-avoiding companies and individuals on incomes vastly less than that of parliamentarians.
If they are really serious, they should bring in far more stringent legislation so that clever accountants cannot use the existing rules to save a self-employed client £5,000 in tax in exchange for a £1,000 fee.
I'm not convinced at all that they have selected the right man for the job as I feel that this is simply a piece of window dressing to enable the government to say, 'Well, we did launch an investigation but it's a very complex area and may take many years to fully understand and find evidence of rule-bending or possible criminality.'
I'd like to know when the government will tell Starbuck's, Amazon, Google and all the major multi-nationals that they will be required to pay tax in the UK or their operations will be closed down, regardless of how many redundancies that causes......Oops! I lapsed into a fantasy just then because that's never going to happen as it would mean an end to the black economy in which parliamentarians earn lots of bonuses not traceable through any UK bank.
Self-employed not paying their taxes properly - who'd have thought it? Dear oh dear!
The Bullshine Broadcast Corporation records the tale like this:
http://www.bbc.co.uk/news/business-38963653
Tom
