Idiot sodding comparison

“Any four black-cab drivers pay more tax than Uber,” said Steve McNamara, the general secretary of the Licensed Taxi Drivers Association (LTDA). “

And how much tax do four Uber drivers pay, you sodding twat?

14 thoughts on “Idiot sodding comparison”

  1. I’ve read this just after reading a times article on Google. He field of “tax experts” is filling up: John Christianson, Atul Shah, Jolyon Maugham. It seems Ritchie has competition and needs to up his game a bit. Or perhaps take the black cab route of de ouncing his competitors’ tax affairs.

  2. Grrr. Uber are a taxi radio control centre, no more, no less, as have existed since the messenger boy existed. If they choose to charge their radio control clients a bare fraction above their operating costs and consequenrly make no taxable surplus, that’s their decision.

    Turn the question around and ask: how much corporation tax do existing non-Uber taxi radio control centres pay?

  3. Reading further into the linked article: “The tax paid related to amounts deferred from previous years when Uber’s UK operation made a loss”.

    Presumably, they are demanding, screaming for a system where your losses are not offset against profits. Make a 10Z loss setting up your business in year 1, make a 10Z profit in year two, pay tax on all that 10Z, go bust.

    I really do beleive that people really do want a system that taxes turnover and not profit. They should volunteer to go first and show us how it’s done.

  4. Yes, but. Making sure that every year you are almost, but not quite, profitable, seems to have become quite a business model in recent years.

  5. Well you can’t blame stupid people for thinking that businesses should get taxed on their income, since normal people also get taxed on their income.

  6. “I really do beleive that people really do want a system that taxes turnover”

    VAT? Just up the rate a fraction.

    And you could do that. Spread the change over a few years to allow for the adjustments needed for those sectors that would otherwise gain or lose from the transition.

  7. jgh said:
    “Turn the question around and ask: how much corporation tax do existing non-Uber taxi radio control centres pay?”

    None, I think, isn’t it, because they’re mostly partnerships / co-operatives owned by the taxi drivers (so the drivers are taxed on their share of the profits)? Or is that no longer the model?

  8. PF said:
    “VAT? Just up the rate a fraction.”

    Which shows the stupidity of the debate, because the people who complain about companies’ low tax as a percentage of turnover also generally hate VAT.

  9. John said:
    “Well you can’t blame stupid people for thinking that businesses should get taxed on their income, since normal people also get taxed on their income.”

    Yes, but I’m surprised at journalists falling for it, since they’re usually very keen on expenses.

  10. “Yes, but. Making sure that every year you are almost, but not quite, profitable, seems to have become quite a business model in recent years.”

    Reinvestment or philanthropic?

    Can’t argue with 2), ie a coop mentality?

    But mostly 1), ie organic growth rather than acquisitions – again I’m struggling to counter that too. The extra cost (ie that reduces corp tax) will often be salaries (more people employed to grow the business and hence more net taxes in total, as employment taxes are higher than corp taxes) and growing successful businesses as a bonus?

  11. Isn’t a lot of the low profitability down to keeping profit margins low to grow market share?

    Classic conflict between shareholders wanting profits and management wanting turnover.

  12. Oh Richard don’t you understand, VAT is paid by hard working families and stout yeomen of olde England, while corporation tax is paid only by evil capitalists.

  13. @ John
    Actually I get taxed on my NET income. I spend **** hours keeping track of my expenses so that I can fill in my VAT and tax returns.
    So I’m abnormal? That has SFA to do with my tax – HMRC taxes me as if I was a normal person.

  14. Making sure that every year you are almost, but not quite, profitable, seems to have become quite a business model in recent years.

    Well, it certainly worked for me while I was letting out the flat I bought to live in when I was at university. I was willing to take a small hit every month for getting the mortgage paid while I was away at sea. And then, thanks to the various tax allowances (a flat 10% of income for depreciation back in those days?), HMG gave me some of it back at the end of the tax year.

    And, having set up a new company in 2014 (and therefore needed to pay ourselves sensibly rather than rely on dividends), we certainly made a tax loss in our first year, thanks to capital allowances. To be honest, the real spendable profit wasn’t huge either.

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