Weather Morning: 14°c Overcast Afternoon: 15°c Drizzle

News

HEADLINES:

Middle-class tax cheating is on the rise

Joe Murphy, Political Editor
09.12.08

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)

 Add your view

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

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.

The high class have been doing this for years, maybe the middle class have raised the bar?

- Brandon Thomas, London UK

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

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

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

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

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

Leave us middle class alone. Haven't the govt bleed us enough?

- Chu, London, UK

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

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

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

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

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

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

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

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

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

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

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

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)

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


Add your comment

 

Your email address will not be published

Terms and conditions make text area bigger You have  characters left.


 

Don't Miss
  • Lenny Henry

    Lenny Henry: 'Maybe one day we can have a black Doctor Who'

    As he wins the outstanding newcomer prize at the Evening Standard theatre awards for his role as Othello, Lenny Henry has come a long way from black and white minstrels
  • John and Edward

    Spread of the Jedhead

    Jedward, voted off the X-Factor this weekend, are the most obvious proponents of the sticky-uppy look - but the style crosses boundaries of age, gender, sexuality and taste, says Nick Curtis

Sky in plot to hire students on the cheap

Sky News is currently recruiting students as reporters for its coverage of next year's general election. However, the opportunity doesn't quite seem so appealing

All stories


Promotions

Environmental initiatives

Find out how you can help to meet the challenges of climate change in London.


The Open University

Every year The Open University helps thousands of professionals progress in their careers.


Win the Best Seats

In London theatre when you vote for your favourite celebrity spec wearer.


Breast Cancer Care

Donate £1 and leave a message of support for a loved one in the Swarovski Garden of Wishes.


Win an iPodTouch

With Courvoisier when you share your thoughts on this week's cocktail.