Sunny Weather Report Ashburn, United States Of America +18°C, Sunny

Taxman Accused of Hitting Small Businesses Whilst Leaving Corporate Giants Alone

Taxman Accused of Hitting Small Businesses Whilst Leaving Corporate Giants Alone

TAXMAN ACCUSED OF HITTING SMALL BUSINESSES WHILST LEAVING CORPORATE GIANTS ALONE – The biblical battle concerning David and Goliath was an admirable tale of how David slew Goliath which taught us that no matter how small we might feel we can, with the power of determination, make a difference and put right the wrong.

Unfortunately today’s environment consists not of swords and stones but rather pen and paper and our Government has never abated in weighing down small firms under reams of legislative paperwork.

Considering the amount of legislation affecting small businesses, it’s undeniably amazing how any of them survive for over 70% of the time is now taken up dealing with Government requirements in one form or another.

UK Taxes

Taxation… now there a subject all small businesses hate but like most things the Government comes up with, it is for the small business, unavoidable.

Note carefully the use of the last word above for when it comes to taxation it is this word that determines who pays tax and who doesn’t.

Once again the taxman and corporations are under fire; the taxman is being called weak and feeble for simply targeting small firms whilst the corporations are being vilified for ‘avoiding’ paying tax.

The reality is that ‘tax avoidance’ is perfectly legal and in fact shareholders rightfully demand that a corporation’s lawyers and accountants take whatever measures are ‘legally’ available in order to avoid paying tax.

It could be argued, and often is, that the taxman will always go after the small businesses due to them being unable to defend themselves; that is they can’t afford the top end lawyers and accountants in order to discover ways to avoid paying tax.

The truth is that taxation is a complex beast and the taxman is simply following the Government’s legislative rules.

Look at it this way… if you were looking to buy a house and your budget was £250,000 would you ask the estate agent to show you houses that cost £1,000,000 or more?

The logical answer is no and it’s the same with the taxman; he knows there’s no point in perusing a desire that cannot be obtained.

Small to medium sized businesses are the backbone of Britain’s employment; if you closed them all down the economy would collapse – you can’t say the same thing of the corporations for there are not that many of them in comparison.

It’s obvious that the taxman is going to hit those who are easy targets but is that really the fault of the taxman?

At meebal.com we often vilify the British Government; after all if you collated all the moral fibre and made a sweater from it, it’s likely it would be too small to fit a flea.

Look closely at how tax laws are written. For starters none of the tax legislation is written by MPs or Ministers; no not even within HMRC.

Due to the complexities and the severe lack of any type of professionalism within Whitehall tax legislation is outsourced to the big accounting firms such as KPMG.

They compile what is intended to become law, a Minister will look over it but fail to understand it and then sign it.

Once new tax legislation is approved, the likes of KPMG then go back to their corporate clients and show them how to circumnavigate the legislation and save billions.

Yes, the taxman has his hands tied as far as getting at the corporate bank accounts because no one in Government is smart enough to tackle the problem.

This of course leaves the small and medium sized businesses exposed and in order to fill the Treasury, it is those who have to pay.

We can of course continue to blame the likes of Google, Amazon, Starbucks and Facebook but they are only playing by the rules that an incompetent Government laid out.

The large corporations are pretty smug about the whole thing and who can blame them; after all the amount of tax avoided by the collective corporations this year alone equates to £35 billion; that’s up by another £1 billion on last year.

The Government’s answer to this debacle is not to find competent individuals outside of the commercial arena to create tax laws but rather to employ a further 2,500 tax collectors that continuously fail to collect – well from the corporations at least.

Yes, I’m afraid our politicians are woefully incompetent and are the only entity I’m aware of that forces taxpayer to cough up an 11% pay rise for what is nothing less than complete and utter failure.

More on this issue … Daily Mail

Bookmark and Share

Tags assigned to this article:
Taxing Small Businesses