Friday, November 25, 2016

UK Economy Takes Hit From TfL's Licensing Of NonDomicile Company, Fuelled by Low Paid Self-Employed On Benefits

The UK's "gig economy", powered by self-employment and casual work, is starting to hit government revenues.

TfL are a government body that has licensed a foreign company they know pays no corporation tax in this country. 
A company that relies on cheap labour, pays no NIC through hiring self employed drivers at below the minimum wage. These workers have to survive on government hand outs like tax credits housing benefits and such. 

By operating a predator pricing scheme which in itself is illegal, they are undercutting a regular trade body that has no control over its own prices which are actually controlled by parliament. 

The regular trade who all pay tax, are being forced out of the market, many will sign on and receive hand outs in the form of job seeker and housing benefits, so no longer will be contributing to the countries economy. Many businesses on the periphery of the trade, who pay tax and employ workers (who pay tax and NIC), will also go under

TfL are obliged by law to keep issuing licenses to new applicants at the rate of 600 a week, because the government refuse to impose a cap.

A group of Uber drivers have established that they were employed by Uber, which should give them some statutory rights. 
But according to Andy Chamberlain of the IPSE, it doesn't effect their tax status, which is still one of self-employed.

He said: 

"For instance the ruling on the Uber drivers last month that established that they were workers, employed by Uber, gives them some statutory rights. But it doesn't effect their tax status, which is still one of self-employed."

It's not just Uber! if you employ someone for £100,000, you pay the taxman about £13,000 in NIC. If you pay a self-employed person the same amount, the government loses that tax revenue. The loss in tax revenue for the government is not because self-employed workers are paying much less. The real differential is because the employer is no longer paying National Insurance Contributions (NIC).

No money coming in to the exchequer, but billions going out. 

Now ask yourself the question "WTF is the Chancellor of the Exchequer Philip Hammond on". 

Remember what Dickens said in his wonderful novel David Copperfield:

Perhaps this Christmas the Chancellor should be given a copy of David Copperfield to study for the sake of the country's economics. 

With thanks to, Johnny Hovis 

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