- By Juliet Robinson
How the government’s HMRC preys on the weak with false tax demands to feed the rich
The International has received a record number of complaints regarding a HMRC scam that is actually comming directly from the government. This certainly got our attention.
Under UK law all Ltd companies have to pay additional taxes for each employee on top of the tax, national insurance and student loan repayments that the employee pays. Such taxes come with an allowance for small and mirco companies, the first £2’000 of such taxes each year you can write off as a tax credit, if you apply. To apply you have to use HMRC’s online system.
We followed several London based companies whom have been battling the government for almost one year with harassing and threatening demands for taxes that are not owed to them.
Talking to the solicitors and accountants representing these companies we saw first hand evidence of confirmation both electronic and verbal via the telephone that all of the small and micro companies involved had been accepted for the £2’000 tax credit. They have all paid their other taxes, wages and contribution in full. So when we are shown a pile of intimidating letter and additional late payment fines and interest charges for taxes that are not even due, we become rather concerned.
One director of a small company with only 2 staff explains:
“I am critically ill and very weak, I spend a lot of time in hospital and only just make it by financially, these taxes they are demanding are more than my company made for the year in profits. How can they tax me more than I earn??
I pay my staff and I pay the taxes on them, the stress from arguing with HMRC over this for the past 9 months has put me back in hospital 4 times now, how about I start sending them my medical bills with interest and fines on top?? They are terrorists preying on the weak and frail.”
When contacted for comment HMRC staff very rudely explained to us that the government does not have to honour tax credits, and may charge the full amount of taxes at it’s discretion. A statement many solicitors have told us is nothing more than a blatant lie.
When will this government learn that financial terrorism is just a s dangerous as all other types. This is unacceptable behaviour from the HMRC who lets multi national firms get away with out paying nay taxes at all.