Mick Mac wrote:
The report quotes £6bn - that's a lot of babysitting.
Relatively low earners in the employed sector pay their share of tax - Just because one is self employed doesn't mean one can defraud the government.
Aren't you missing the point? The article you quote Nigello doesn't mention 6.2 billion. Other news articles do and indeed the Taylor report does.
The figure comes from an HMRC report which you can read in full here. [webarchive.nationalarchives.gov.uk
The figure of £6.2 billion relates to the "Hidden Economy" and is an "illustrative" estimate produced from estimated figures for 2013-14 (£4.1 billion). The estimates are, they stress, "experimental".
The Hidden Economy is described as being related to:
"Undeclared economic activity that involves what we call ghosts whose entire income is
unknown to HMRC, and moonlighters who are known to us in relation to part of their
income, but have other sources of income that HMRC does not know about.
According to the report: "The direct tax hidden economy estimate is £4.1 billion in 2013-14. This consists of ghosts (£1.2 billion), moonlighters (£1.9 billion) and Pay As You Earn individuals not in Self Assessment (£1.0 billion).
So by HMRC's own reckoning approximately a quarter of the "Hidden Economy" are in fact, employees (in PAYE) who don't declare additional income through SA, and another half are "moonlighters" which HMRC describes thus:
Moonlighters are individuals who pay tax on their main job through PAYE, but who fail to declare earnings from
a second job or additional income from self-employment.
Just over another quarter are people who simply don't declare any income at all. The "ghosts". These people don't have the status of being "self-employed".
So, in fact. Mick Mack, according to the source document from HMRC the problem is not with the self-employed it is with the employed. It is those already within PAYE that are being referred to when that figure of £6.2 billion is bandied about.
As you say, "Just because one is employed one can't defraud the government"
Edited 2 time(s). Last edit was july 11, 11:52pm by bawdy-nan.