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Facebook’s affairs are just one of the UK’s problems with tax collection Facebook’s affairs are just one of the UK’s problems with tax collection
(about 3 hours later)
The fact that Facebook paid only £4,327 in UK corporation tax reveals yet again the government’s feeble attempts to tackle the problem (Facebook’s £35m staff bonus – and £4,327 tax, 12 October). Are companies actually “smelling the coffee” because of their “morally repugnant” practices, as David Cameron and George Osborne warned them they would be, back in 2013, or reeling because Osborne’s diverted profits tax is planned to recoup a mere £600m, but not until 2019? A government that makes huge cuts in its tax collecting agency cannot seriously be seen as an enemy of the tax avoider, and recent reductions in the numbers of tax inspectors at HMRC are allowing employers to flout laws on bogus self-employment. The number of tax inspections in the construction industry has fallen from 5,330 in 2012-13 to 2,420 in 2014-15, which could mean more employers are paying little or no national insurance for the majority of their workers. The number of construction firms fined for such illegal practices has fallen from 57 to five in the same period.Bernie EvansLiverpool The fact that Facebook paid only £4,327 in UK corporation tax reveals yet again the government’s feeble attempts to tackle the problem (Facebook’s £35m staff bonus – and £4,327 tax, 12 October). Are companies actually “smelling the coffee” because of their “morally repugnant” practices, as David Cameron and George Osborne warned them they would be, back in 2013; or reeling because Osborne’s diverted profits tax is planned to recoup a mere £600m, but not until 2019? A government that makes huge cuts in its tax collecting agency cannot seriously be seen as an enemy of the tax avoider, and recent reductions in the numbers of tax inspectors at HMRC are allowing employers to flout laws on bogus self-employment. The number of tax inspections in the construction industry has fallen from 5,330 in 2012-13 to 2,420 in 2014-15, which could mean more employers are paying little or no national insurance for the majority of their workers. The number of construction firms fined for such illegal practices has fallen from 57 to five in the same period.Bernie EvansLiverpool
• Heather Stewart sees some mischief in Facebook paying only £4,327 in corporation tax based on an accounting loss of £28.5m, arrived at after “paying out more than £35m in a share bonus scheme”. A Facebook spokesperson has advised that all the firm’s employees paid UK tax on their payouts. It seems reasonable to assume that a rate of tax of not less than 40% was borne by the employees, so some healthy cheque must have been remitted under PAYE to HM Treasury – rather more than would have been paid if Facebook had declared profits subject to corporation tax absent the bonus share payments. So do we have anything to complain about?Michael RansomeLondon• Heather Stewart sees some mischief in Facebook paying only £4,327 in corporation tax based on an accounting loss of £28.5m, arrived at after “paying out more than £35m in a share bonus scheme”. A Facebook spokesperson has advised that all the firm’s employees paid UK tax on their payouts. It seems reasonable to assume that a rate of tax of not less than 40% was borne by the employees, so some healthy cheque must have been remitted under PAYE to HM Treasury – rather more than would have been paid if Facebook had declared profits subject to corporation tax absent the bonus share payments. So do we have anything to complain about?Michael RansomeLondon
• As someone passionate about the role of the voluntary/not-for-profit sector, I am always keen to hear of new funding initiatives. However, I admit to being flummoxed to see that HMRC is to allocate £1.5m a year for the next three years to enable voluntary and community sector organisations “to provide advice and support to customers who need extra help understanding and complying with their tax obligations”.• As someone passionate about the role of the voluntary/not-for-profit sector, I am always keen to hear of new funding initiatives. However, I admit to being flummoxed to see that HMRC is to allocate £1.5m a year for the next three years to enable voluntary and community sector organisations “to provide advice and support to customers who need extra help understanding and complying with their tax obligations”.
Surely, if HMRC’s own resources were fit for purpose, it would be undertaking such clarification as a matter of course, making effective use of its existing resources? And if HMRC has identified that such help is needed by its customers – the public – then it must also acknowledge that its ability to communicate effectively is inadequate, and that its forms and guidelines are incomprehensible?Surely, if HMRC’s own resources were fit for purpose, it would be undertaking such clarification as a matter of course, making effective use of its existing resources? And if HMRC has identified that such help is needed by its customers – the public – then it must also acknowledge that its ability to communicate effectively is inadequate, and that its forms and guidelines are incomprehensible?
Finally, if HMRC does have £4.5m to spend, maybe this could more usefully be invested in getting slippery corporate clients to pay full corporation tax?Monica HartwellMinehead, SomersetFinally, if HMRC does have £4.5m to spend, maybe this could more usefully be invested in getting slippery corporate clients to pay full corporation tax?Monica HartwellMinehead, Somerset
• Trudi Elliott et al (Letters, 12 October) are right about the need for communities to share windfall increases in land value from infrastructure works and the granting of planning permission, although the most recent attempts, the Land Commission Act 1967 and the Community Land Act 1975 /Development Land Tax 1976 struggled with complexity and landowners battening down the hatches to await the return of a Tory government.• Trudi Elliott et al (Letters, 12 October) are right about the need for communities to share windfall increases in land value from infrastructure works and the granting of planning permission, although the most recent attempts, the Land Commission Act 1967 and the Community Land Act 1975 /Development Land Tax 1976 struggled with complexity and landowners battening down the hatches to await the return of a Tory government.
But there are obvious measures that could be taken now to reduce the housing crisis: remove buy-to-let tax advantages over owner-occupiers; tax homes left empty for more than six months; make second homes a separate use class, requiring planning consent; tax development land per uncompleted consented unit; levy inheritance tax, with no minimum threshold, on housing assets.But there are obvious measures that could be taken now to reduce the housing crisis: remove buy-to-let tax advantages over owner-occupiers; tax homes left empty for more than six months; make second homes a separate use class, requiring planning consent; tax development land per uncompleted consented unit; levy inheritance tax, with no minimum threshold, on housing assets.
Sure, there would be negative equity, but that is a far lesser evil than homelessness and no worse than a £40,000-£50,000 tuition fee debt weighing against ability to borrow.John WorrallCromer, NorfolkSure, there would be negative equity, but that is a far lesser evil than homelessness and no worse than a £40,000-£50,000 tuition fee debt weighing against ability to borrow.John WorrallCromer, Norfolk
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