‘People who pay cash in hand to tradesmen are “diddling” the economy and diverting money from hospitals and schools, the country’s most senior taxman, Dave Hartnett, has warned. ‘In an interview with the Daily Telegraph, Mr Hartnett [Permanent Secretary for Tax at HMRC] says that householders have a duty to ensure that other people do not evade paying their share of tax. Paying a builder or cleaner in cash, allowing them to evade VAT or income tax, will result in even deeper government cuts to public services, he says. “Tax provides the funding to run the country: hospitals, schools and everything else,” he says. “Every time someone pays cash in order not to pay VAT, the nation gets diddled.” Tax inspectors are building up a “head of steam” to raise billions of pounds by closing loopholes that are exploited by rich people, he says.’
‘MPs last month accused Mr Hartnett of being “unduly cosy” with big companies and of applying double standards to corporations and ordinary taxpayers. It was alleged he agreed “sweetheart deals” with companies including Goldman Sachs and Vodafone that allegedly let them off large bills worth millions of pounds to HMRC. Addressing the MPs’ findings in an interview for the first time, Mr Hartnett insists HMRC is operating a “level playing field” and that big firms are treated in a similar way to individual taxpayers.
‘The Revenue’s “engagement policy” with businesses had persuaded them to pay £25bn in tax over the past six years which they otherwise would not have done, he claims. “We are not soft with big business, there was no sweetheart deal with Vodafone,” he said. “We got all the money for the nation that was there to be got.”
‘People who pay cash in hand to tradesmen are “diddling” the economy and diverting money from hospitals and schools, the country’s most senior taxman, Dave Hartnett, has warned. ‘In an interview with the Daily Telegraph, Mr Hartnett [Permanent Secretary for Tax at HMRC] says that householders have a duty to ensure that other people do not evade paying their share of tax. Paying a builder or cleaner in cash, allowing them to evade VAT or income tax, will result in even deeper government cuts to public services, he says. “Tax provides the funding to run the country: hospitals, schools and everything else,” he says. “Every time someone pays cash in order not to pay VAT, the nation gets diddled.” Tax inspectors are building up a “head of steam” to raise billions of pounds by closing loopholes that are exploited by rich people, he says.’
‘MPs last month accused Mr Hartnett of being “unduly cosy” with big companies and of applying double standards to corporations and ordinary taxpayers. It was alleged he agreed “sweetheart deals” with companies including Goldman Sachs and Vodafone that allegedly let them off large bills worth millions of pounds to HMRC. Addressing the MPs’ findings in an interview for the first time, Mr Hartnett insists HMRC is operating a “level playing field” and that big firms are treated in a similar way to individual taxpayers.
‘The Revenue’s “engagement policy” with businesses had persuaded them to pay £25bn in tax over the past six years which they otherwise would not have done, he claims. “We are not soft with big business, there was no sweetheart deal with Vodafone,” he said. “We got all the money for the nation that was there to be got.”
