Saturday, March 31, 2007

It's Never Our Fault

Here's some cheery news of our expanding police state to start the day that you might have missed in the small print of the Budget:

"Under the changes, introduced in the Commons last week, taxpayers will be forced to second-guess assessments from HM Revenue & Customs inspectors and scrutinise the work of their own accountants or pay hefty penalties for mistakes.

Taxpayers will have 30 days to spot an error in a Revenue assessment or face penalties of up to 30 per cent of the amount of the unpaid tax.

The revised penalty regime, which comes into force at the start of the 2008 financial year, will also see taxpayers lose the defence that previously operated where a mistake was the fault of an accountant or tax adviser. In the past, if a taxpayer was entirely innocent, the Revenue could not apply a penalty.

The updated penalty regime applies to late or unpaid income tax, corporations tax, PAYE and VAT."

Mind you, it get better, with the news, this morning that Gordon Brown defied repeated warnings from his own officials about the potentially devastating impact of his £5 billion-a-year raid on pension funds and went ahead with it regardless.

Mr Brown announced the scrapping of tax relief on dividends paid into pension funds in his first Budget in July 1997, in the single biggest change to the pensions system in a generation.

Experts claim that the move has deprived the country’s savers of at least £100 billion over the past decade, during which Britain’s private and occupational pension system has struggled to stay afloat. The changes affected the 11 million people in Britain with company pensions and the 7 million with personal pensions.

With the great majority of the population now looking towards a retirement of stark poverty, suppose it was a good idea at the time! What do yo think?

3 comments:

tony flaig bignews said...

Come on Simon dig a little deeper, any way I'm sure we've both met those who are happy to confess to how they've declared enough to the tax man.

Just like absent fathers who are the real cause of the CSA's downfall, how they like to tell us that the money they pass on to their children, should be regarded as extra, after those of us who pay tax subsidise benefit payment to stop the kids from starving.

The tax should get tough.

As to the raid on pension funds this was started by the tories.

If you ask me New Labour are really more efficient Tories

DrMoores said...

Absolute bunkem Tony and you know it. I've just spoken with Roger Gale about it and he's already putting pressure on the Dawn Primarello over the legion injustices of the Inland Revenue, Tax credits being one. In fact, knocking on doors today, I spoke to one young mother who had Roger help her - among many others - in the tax credits farce.

The simple fact of the matter is that the Revenue are being unjust. Paying tax is one thing but taking no responsibility for the injustices and iniquities of a failing system is another matter.

If the taxman makes a mistake then he shoud not penalise the taxpayer for failing to discover it. I take it you have examined your 2007/2008 tax code carefully to ensure that the Revenue have correctly assessed you and have not made an error for which you may be liable.

Wake up Tony, too many people are hurting under bad government and growing injustice.

Anonymous said...

A recent ITV investigation into the pensions crisis put Mr Brown firmly in the frame as the chief villain. As just one of countless victims, all I wanted to do was pay off my mortgage and take care of myself in retirement. Mr Brown has not only robbed my pension pot but is now increasing my tax burden as a pensioner. I am £3.50 per week the wrong side of his minimum income guarrantee so glasses, teeth, prescriptions, Council Tax will soon soak that up! I just cannot believe that a Labour Chancellor has deliberately targeted the poorer end of our society unless he wants us all to be queuing up for hand-outs from the state or emigrating to Bulgaria. I was fed up with this Government; I now hate it so much I have even resorted to sponsoring Tory councillors purely to oppose Labour Councillors who would otherwise be unopposed. Mr Brown will find out that all those nice middle englanders who had high hopes in 1997 of New Labour will relish the earliest opportunity to see him back on the opposition benches that he should never have left.