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....but ....
.... Employers NIC is the only tax that some companies actually pay!
Some companies (who pay little or no corporation tax) claim that the huge amounts of VAT they pay is a tax on their business (but in reality is a tax on the customer) and that their companies are paying vast sums of PAYE/NIC (but most of that is borne by the employee) and they 'manage' the profits so little, or no, corporation tax is paid ... so reducing Employers NIC will transfer the liability from employers onto the other taxpayers.
Someone has to pay the tax needed to fund the country (and the EU)!
@ShirleyM
.... Employers NIC is the only tax that some companies actually pay!
Some companies (who pay little or no corporation tax) claim that the huge amounts of VAT they pay is a tax on their business (but in reality is a tax on the customer) and that their companies are paying vast sums of PAYE/NIC (but most of that is borne by the employee) and they 'manage' the profits so little, or no, corporation tax is paid ... so reducing Employers NIC will transfer the liability from employers onto the other taxpayers.
Someone has to pay the tax needed to fund the country (and the EU)!
Given what you say about VAT, do you really believe employers are the ones who are paying employers NICs, I would disagree strongly.
Regards
MtF
In the end ....
Given what you say about VAT, do you really believe employers are the ones who are paying employers NICs, I would disagree strongly.
Regards
MtF
... the customer pays for everything, the CT, the dividends, the wages, the lot ... so I would agree with your comment if looking at the subject from a wider angle.
However, the profitable companies that avoid any form of tax are taking the benefits of trading in the UK, without paying towards any of those benefits, and leave a larger bill for everyone else. It also creates an unlevel playing field, where businesses that don't avoid tax are being undercut by the dodgers. Therefore, more businesses avoid tax, just to stay competitive, and the circle continues, with the tax tab being picked by those who cannot, or choose not, to avoid tax.
I agree with Shirley
Its so easy to get away with not paying CT, that at least NIC forces companies to actually pay something if they employ people in the UK.
I've always thought they should lower CT (if it gets low enough hopefully it wouldn't be worth avoiding) and raise NIC, because at least if the company employs people in this country then we would get some contribution from this.
Mike Rake – CBI and other posts ….
@ShirleyM – agreed
CBI
The CBI seems to have a lot to say recently although perhaps they should look to their own before advising everyone else on the way forward
On the EU (in/out) their impartiality has been called into question because they have received more than £800,000 in funding from the European Commission over the past five years
In the past the CBI campaigned for the UK to join the Euro – a major mis-judgement which would have been a catastrophic move
To all accounts the CBI provides economic data for the EU to analyse and promote their various agendas
Mike Rake
The well-known collector of non-exec positions - where do we start with Mr Rake? The CBI, Barclays, EasyJet, McGraw Hill …..
How about his role in the Barclays Libor scandal
Bearing in mind his starter for ten as the former European, UK and International KPMG chairman one would think that his role as:
Barclays as chairman of the relevant Audit sub-committee and a member of the Risk Management and Corporate Governance sub-committees would have been a task well within his capabilities
This role included the detection and exposure of Libor wrongdoings which were ultimately his responsibility and which unfortunately he did nothing about - basically a watchdog that was asleep on watch!
Let’s just look at Mr Rakes track record every time he gets involved with a company
$5bn lawsuit brought by the Department of Justice against credit-ratings agency, Standard & Poor’s, where Sir Mike sits on the board of parent company, McGraw-HillAt KPMG when it was fined by the US Justice Department and the Internal Revenue Service for the design, marketing, and implementation of fraudulent tax sheltersAt Barclays amid the Libor rate-fixing scandal
As the saying goes – once is unfortunate, twice is careless and three times …..
With all this in mind why do we continue to any take notice of these people?