Adrian Lawrence is an experienced Chartered Accountant. His interests include ICT and Offshore Taxation Planning.
He has held senior positions in the private sector including Group Director of Finance in IT, Business Services and the Transport Sector and Cabinet Positions in Local Government.
"The minimum wage has been around since 1909" It really would be interesting to see the UK if that statement was correct!
I think the gig economy is the natural extension of technology, you now no longer need to work or see work as being limited to a geographic area, think of digital nomads.
In the future I believe an increasing amount of tasks will be done globally based solely on the ability level of the individual. I already outsource coding work to a guy in India and design work to another in Bosnia via two gig platforms.
This will provide a real and mounting challenge to countries with high taxes as it will become easier and easier to allocate work to anywhere globally based on price and quality and tougher to collect taxes if labour is no longer localised.
The £10K earnings threshold is planned to be abolished in the mid 2020's so whilst no immediate plan at least contributions will increase in due course.
I completely agree. If we got rid of the 40% and 45% rates then the 20% basic rate vs 19% corporation tax rate would make all of these schemes not worth the effort.
The public would most likely spend the extra money which would then expand the privates sector of the economy offsetting the lost tax in to other ways such as via VAT
Plus to add to the list.
Living wage - many stores pay close to or the living wage
Auto-enrolment - added 2% to the paybill
Apprentice levy - many retailers are classes as large and therefore subject to 0.5%
All together the cost of the traditional store has risen while it's share of revenue has fallen.
Hence its a trend that will continue and the importance of the high street to the economy is now far lower.
Next for example gets more than 50% of its Revenue online now.
If the UK reduced our levels of tax we would attract more companies to set up here from Europe and the rest of the world, for me that is supply and demand rather than a distortion.
Within the UK tax system we have zero rate bands such as the personal allowance. In Bermuda for example (where I previously lived) there is a payroll tax payable by your employer but no income tax. Instead things like healthcare are paid directly by private insurance contributions. Its a different and alternative system.
The article was saying its not about tax its about market distortion.
Interestingly if you read the press from offshore centres you get a completely different perspective - not surprisingly they are protective of their own regimes and critical of the UK!
I am a believer and advocate of free markets and low taxes, I do however accept that there are issues, moral if nothing else, with companies such as Google paying little if any tax whilst having a large operations in the UK and an a tiny office in Hamilton where apparently the whole of their European operations are held by an intermediary holding company.
The enterprise finance guarantee scheme is a partial solution but it only accounts for a tiny proportion of lending and I guess many have never even heard of it.
Having regularly been audited by staff who explain that they graduated yesterday and this is their first day on the job (well exaggerating but you get the idea) it is not a particular surprise. But I can't help but feel a bit sorry for KPMG who are a good firm and on the receiving end of a lot of flack at present.
"This isn’t just about tax. It’s about the free market. Tax havens undermine the free market"
Surely the idea of free markets is that countries can set their own tax rates, 0%, 10%, 20% or whatever.
There is only an attraction in the first place if the rates of tax motivate business or individuals to seek to avoid them.
If we reduce our levels of tax down, the rate of avoidance will also fall.
Time to stock up the stationery cabinet again ))
Sometimes at the end of the process, HMRC then do nothing, ie spend money on debt collectors but then decide not to enforce the collection / put in a winding up petition.