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Middle-class tax cheating is on the rise
Joe Murphy, Political Editor9 Dec 2008
MIDDLE-CLASS tax cheats are a growing part of the black economy, a committee of MPs warned today.
Among "high-risk" groups highlighted by the all-party Public Accounts Committee were well-off homeowners entering the buy-to-let property trade, often by mortgaging the family home to raise the funds for a second home.
They were more likely to hide the rental income from the taxman, contributing to an annual loss of £2 billion nationally through tax evasion.
Entrepreneurs running new online firms were also more likely to operate cash-in-hand businesses with profits concealed from the authorities.
The committee called for tougher punishments for offenders.
Chairman Edward Leigh said: "Revenue & Customs are apparently making little ground in their efforts to diminish the cash-in-hand culture in the UK."
An HMRC spokesman said: "Those who persist in operating outside the formal economy face civil penalties and, for the most serious offenders, a criminal conviction."
Reader views (22)
A black market economy is looming and the government seemed surprised at what is a problem caused by them. If a tax,tax, tax and spend,spend, spend in their interests but not ours then what do they expect. I read in the last few weeks that petrol is down around 10p a litre. It down here in America to a $1.67 a gallon. Here you get back the reduction. In the UK he raised the tax yet again. What does he espect the middle classes will do.
- Ivan Cohen, Miami Florida, 09/12/2008 14:27
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Yep, and I will continue to get whatever I can cash in hand. I have never been taxed so much for so little in my entire life. I see entire estates filled with work shy drunks all with bigger and better TV's than me proudly showing in their front rooms whilst I get poorer and poorer. Get stuffed Gordon Brown.
- Roger, Surrey., 09/12/2008 14:16
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The high class have been doing this for years, maybe the middle class have raised the bar?
- Brandon Thomas, London UK, 09/12/2008 14:02
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And who can blame them? It is a known phenomenon that when taxes are unreasonably raised or spent, those targeted rebel. Watch the number of people refusing to pay the BBC tax.
- 45govt, Barbados, 09/12/2008 14:02
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Do not this breath taking arrogant govn'mt understand that people will begin to say. Why should my tax pounds go on benefit's in the enormous amounts they do. I was in my dentist surgery today, ( I know I,m lucky to have one) I was the only one in the surgery who had to pay NHS prices. The receptionist was going round asking are you on credits. Ount of twelve people in that surgery eleven said yes. It was only me paying for my wife and I. It was sickening all those eleven people looked under the age of forty. I say to all those who are sick to the stomach of this govn,mt stealing from those that work and pay taxes. Then turn around and give it to the workshy and lazy. Do what you can and keep your money, where you can. Do not feel ashamed to look after yourself, they only give to the workshy and lazy. ( Which are the majority on benifits) not all I agree. Whta's wrong with that picture.
- Ebin Donk, yo1 6ds, 09/12/2008 13:49
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Why are the middle classes always targeted for tax avoidance, it is the lower classes, immigrants that are also to blame, how many of us pay window cleaners cash, have our houses cleaned by polish workers and pay them cash.
- Raminder Bhalla, Northolt, 09/12/2008 13:47
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I'm not sure what you mean by middle classes, surely this great Labour government has given us a truly classless society? After all the 40% tax bracket should start at around £50,000 per year if it had followed inflation as it was supposed to, instead it stands at £38,000 currently, meaning that more and more people are shelling out extra money to the Nu Liebour spin machine.
- Bob, Cheam, 09/12/2008 13:46
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If we could see the money the govenment steal from us doing any good maybe we would be a little more willing to let them rape us for every penny they can.
- Ben, London, W1, 09/12/2008 13:15
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Leave us middle class alone. Haven't the govt bleed us enough?
- Chu, London, UK, 09/12/2008 13:15
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The UK is now made up of an overpaid overmanned public sector and millions on benefits living comfortably off the tax income of a diminishing private sector whose workers are mired in credit card and mortgage debt just to meet their tax obligations. We can't go on like this.
- Tom Moncrieff, london W6, 09/12/2008 13:11
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This is the class that Nu Labor describes as "The Rich" and that they tax to "re-distribute wealth" to people that the Nu Labor machine has selected as needy. In a couple of years we will all be dependent on this fantastic Nu Labor machine.
- Peteo, London, 09/12/2008 13:04
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Our tax money is being wasted and we can do nothing about it.
So the exchequer is losing a piddly £2bn a year? This government can waste that much money over lunch.
One reason they want ID cards - making you easier to track will help them raise more unfair taxes that you won't be able to avoid.
When taxation is seen to be fair, there is far less evasion.
- Tim, London, 09/12/2008 13:04
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It never ceases to amaze me just how out of touch MPs really are.
This government have taxed middle white England to the hilt and given nothing back. They bring in a raft of politically-correct, minority-centric legislation which further discriminates against us. Then they are surprised when people have to resort desperate means to make ends meet!
- Frank, Home Counties, England, 09/12/2008 13:03
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Middleclass landlords have been faced with extra taxes under this government
1) EPC are compulsory cost and addition £60 per property
2) Registering the depoisit costs additional money
3) if you let to more than 6 tenants in one property again more money
These are all indirect taxes paid by the middle class, the sooner we have a change in government the better!
- Raminder Bhalla, Northolt, 09/12/2008 12:38
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For the middle classes it is called 'tax cheating, for the elthy upper classes it is called 'tax avoidance'.
Thank goodness for numbered offshore accounts.
- Paul, London, 09/12/2008 12:31
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Remember when this Government blew £3bn in one year on the lamentable Family Credit fiasco ? Think of all the failed IT projects on which they have blown billions. Don't even mention the war! The list of hugely costly losses is immense.
With nearly a trillion worth of national debt and a country in which the public sector is one of the richest sectors in the country. I must say they are really focusing on the right thing here.
- Sandy, London, 09/12/2008 12:23
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It seems the rich want better roads, free health care, world class education and more police on the street. They also want the hard working poor majority earning less than 25K to pay for it, while the rich move their gains offshore. How can anybody call that fair?
- Harold Lloyd, Acton UK, 09/12/2008 12:22
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It is easier to put the squeeze on the "middle classes" and threaten them with legal action, than some thug or criminal on benefits who blockades his council flat and protects it with a Bull terrier.
- Nobby Clark, Perth, Scotland, 09/12/2008 11:41
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The middle class is absolutely fed up with being overtaxed with no benefit to show for. Shouldn't the government focus its efforts on the very rich who openly use any loophole available to them to avoid taxation successfully?
- Daniel, London, 09/12/2008 11:26
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Perhaps if the middle classes felt they were being taxed fairly and not being treated as cash cows by the Government then they might be less inclined to try avoiding giving them their all.
- Mark, London, 09/12/2008 10:28
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I suppose the middle classes are sick of working hard to make money only to have it taken away from them by the taxman and given to the benefits classes.
- Tom, Watford (UK), 09/12/2008 10:02
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Instead of chasing the middle class perhaps this Government should focus on murderers, child abusers, rapists, thieves first! We are becoming more of a nanny state. This seems to be another excuse to spy on us. Majority of us can't afford the first home, let alone the 2nd to rent out. Also try focusing on the people on benefits living in the mansions who have only been in this country for 5 minutes.
- Jk, London, 09/12/2008 10:01
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