So, err, umm

And while it’s not as consequential, tax avoidance could also be setting up a limited company to sell services that should really be subject to PAYE.

I wonder
which of Ritchie’s companies he’s referring to there?

16 thoughts on “So, err, umm”

  1. The statement is nonsense. and its a loaded question. Lots of reasons to do this which are nothing to do with tax avoidance. Makes my blood boil!

  2. and another thing. PAYE is not a tax – its a system of collection. its a means of making the employer pay for the cost of collecting INCOME TAX and NI, not to mention policing loads of other stuff like SSP, Maternity pay etc. Hidden costs of tax collection! I feel a nokia moment coming on.

  3. Classic Ritchie in response to a neoliberal troll:
    “Note the award I got last night”
    Yeah, from a charitable family trust that pays you for your work!

    A bit like the Fair Tax Mark given to Lush:
    Ritchie + Ethical Consumer = Fair Tax Mark
    Lush + Ethical Consumer = Lush prize

    No surprise Lush gets awarded a Fair Tax Mark then! See, anything stinks when you look at it.

  4. It’s the usual crap that appears on his blog – trying to “redefine” tax avoidance for his own purposes. It’s worrying that he’s being given that kind of coverage.

    “Nobody wants to appear in front of Margaret Hodge.”

    I’d just love someone to appear in front of Margaret Hodge and tell her a few home truths – seriously, I’d pay good money to watch that..:)

    “And finally, we need a tax authority that is well resourced”

    He gets a slot in a national rag, and can’t resist the “can I just mention my mum, my dad, my sister, oh yes and those who are paying my salary”!

  5. I’m a Scottish & Southern customer; I’m thinking of switching and telling them it’s because of their Fair Tax Mark.

    But isn’t paying less than the minimum wage a form of tax evasion? It’s an illegal act that saves them employer’s NI.

  6. “Note the award I got last night”

    The First Annual Richard Murphy Award For Outstanding Achievement In The Field Of Excellence.

    I’m willing to chuck a quid in to give Tim a nice plastic trophy to match Ritchie’s. Pendant Of The Year?

  7. Not paying minimum wage means they pay more corporation tax. They should get a laminated certificate as a bonus.

  8. Paying less than the minimum wage is, in my experience, due to not realising that the rules for calculating the minimum wage are rather arcane and not entirely intuitive.

    I have one client on the list which has just been published, plus a couple more who have open enquiries which may get them on a future list. In every case the employer has considered NMW, tried to make sure it paid above that level, and then come a cropper because they used common sense rather than HMRC’s principles.

    In fact, of those three cases:

    – One turns on the definition of “apprentice”, where formal training has finished.
    – One turns on the definition of “salaried” (checking with HR people, HMRC use it very differently from the rest of us – and from HR people).
    – One turns on the question of whether one can withhold debts from a worker, or whether one has to pay them upfront and then try to recover the debt separately.

    In one case HMRC’s answer is absurd, but it doesn’t seem worth arguing it for that amount of cash; in another HMRC say they don’t know the answer themselves; in the other there are two possible answers neither of which fits the facts.

    I strongly suspect that SSE have been caught out by such a technicality. The problem is that there is no mens rea required for the naming and shaming: the published list does not distinguish between a misunderstanding about the rules, a miscommunication between HR and Payroll departments, a typo in someone’s date of birth, and a deliberate attempt to underpay people.

  9. @ Pellinor
    “a deliberate attempt to underpay people.”
    That is rarely anything that HMRC can pick up – usually those employing illegal immigrants (but also the Labour-controlled Birmingham City Council.
    To avoid paying NMW (a different topic to underpaying people) – not that I expect anyone who can afford your advice would want to do so – get the mug to register as self-employed and pay by results instead of the hour as HMRC cannot trace hourly rates for such people.

  10. ‘no-one wants to appear in front of Margaret Hodge’. And ‘stench of insincerity’

    In different paragraphs, sadly.

  11. That entire thread has to be one of the most nauseating I have ever seen – still, when the time comes for those congratulating him, and the man himself to be exiled to Cuba or Venezuela, at least they should be identifiable.

  12. He missed one of my aliases and let this one through!

    “Aneurin Evans says:
    February 24 2015 at 7:17 am
    Thats one in the eye for all the neolibaral’s and torie’s. Keep it up.”

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