Corbyn’s Numbers Don’t Tally With Government Accounts

Jeremy Corbyn’s team say he was paid just £27,192 in his role as Leader of the Opposition in the year 2015/16. Yet this does not tally with the government’s accounts – dug out by James Tapsfield – which say Corbyn was paid £30,587 in 2016/16. Why is Corbyn’s declaration not the same as this figure? Team Corbyn say the £27,192 figure comes from his P60. They don’t know why the government’s accounts show him being paid £30,587…

What’s more, his earnings as Leader of the Opposition are clearly a salary. As you can see above, the government accounts call it a “salary“. So why does it appear in the pensions section of his tax summary, not the salary section? Have to wonder if this tax stunt was worth it for Jez…

UPDATE: Statement from Labour six hours later.

£40,000 ‘Missing’ From Corbyn’s Tax Return

It’s Budget week so Jeremy Corbyn has published a summary of his tax return to put pressure on Theresa May and Philip Hammond. What could go wrong? Well, it appears £40,000 in earnings from his role as Leader of the Opposition are missing from his 2015/16 declaration. Corbyn declared £114,342 in earnings from his MP’s salary, outside earnings and pension. Yet the £40,000 he should have earned as Labour leader during the financial year does not appear on his return. It is an offence not to declare income correctly. Remember he messed up last year’s tax return too and had to pay a £100 fine. Corbyn also published his National Insurance number and his Unique Taxpayer Reference, which Guido is choosing not to reproduce. Shotgun loaded, aimed and fired straight into his own foot…

UPDATE: Statement from Team Corbyn:

“Claims in some media that Jeremy Corbyn failed to declare £40,000 of income to the taxman are untrue. The extra payment following Jeremy’s election as Labour leader of £27,192 is recorded in the tax return under the heading of ‘public office’. We are confident the total income of £114,342 in the tax return is correct, as is the income tax charge of £35,298. Nearly all the tax was paid at source.”
Corbyn says that for some reason he included the £27,192 LOTO salary in the “pensions and state benefits” section, hence the confusion – it took his team about four hours to work it out themselves and inform the media. They will only say they are “confident” the tax return and amount of tax paid are correct…

McDonnell Contradicts Corbyn on NHS Tax

Delivering his pre-Budget speech this morning, John McDonnell outlined his support for a hypothecated NHS tax to “restore trust” in taxation and government spending:

“Hypothecation, allocating taxes raised to specific purposes, can absolutely make clear where tax money is being spent. It can help restore the trust and confidence in taxation and government spending that has otherwise started to break down… It needs a clear commitment, over the long term, that specific taxes will be used for specific purposes, and that this spending will be properly monitored.”

Yet just six weeks ago Jeremy Corbyn seemed to say a hypothecated NHS was a bad idea. Speaking on Marr on 15 January, Jez said:

“I am not one that’s generally in favour of hypothecated taxation… Whether we’d have a specific tax I doubt, but I’m prepared to consider it and discuss it as I’m sure all my colleagues are. But if you go down the road of hypothecated taxation then you’re going to do hypothecated taxation for every other service.”

Well, which is it?

Age UK Calls For Tax Rises While Encouraging Tax Avoidance

Age UK today calls on the government to raise taxes to pay for the country’s social care system. In its briefing paper Health and Care of Older People in England 2017, the charity states:

If you believe, as Age UK does, that the current situation cannot be allowed to go on then you may conclude, like us, that the need for a proper discussion…means it runs up against some ‘sacred cows’ – such as the possibility of raising taxes on income or wealth.

This could generously be interpreted as a cognitive lapse on the part of Age UK, since it also advises the elderly on how to reduce their tax bills and especially on inherited wealth. For example, its leaflet on will writing excitedly promotes tax efficiency measures:

Making a will is vital if you want to be certain that your wishes will be met after you die – and it might also prevent you from paying unnecessary taxes to the government…  it might be possible to reduce the Inheritance Tax bill that may be payable on your estate after your death. 

Not sure how you can credibly argue taxes need to go up while also helping the elderly reduce their tax bills…

Save the (Tax Free) Link

Ju­lia Reda, the Ger­man Pi­rate Party MEP, is the most vo­cal op­po­nent to the EU’s pro­posed neigh­bour­ing right: “neigh­bour­ing rights al­ways have a broader scope than copy­right, be­cause they don’t have a thresh­old of orig­i­nal­ity. Whereas sin­gle words or very short sen­tences can­not be pro­tected by copy­right, they would fall within the scope of the neigh­bour­ing right.” She adds that “the pro­posed new right would make links to news ar­ti­cles sub­ject to a fee, even if only the head­line is re­peated in the link. That’s a se­ri­ous threat to free­dom of in­for­ma­tion on­line.”

On September 14, 2016, the EU Commission tabled a directive proposing the worst copyright rules in the world. These include unprecedented new link tax powers for publishing giants. The EU is proposing to tax web links, Google, Twitter and Facebook would have to pay a fee to display the headline and preview snippets to online links. This is absolutely crazy.

The only organisations that want this tax are failing publishers who can’t cope in the digital age. The EU is once again showing its protectionist colours, effectively proposing a new digital tariff…

Multi-Millionairess Polly Toynbee Calls For Property Tax

Guido enjoyed listening to three home-owning multi-millionairess Polly Toynbee rail against inequality and demand a US-style property tax this morning. Six-figure salaried Polly also wants a new levy on “the wealth of the very old, very rich to pay for a care system”. Wealthy socialists are of course free to voluntarily pay more tax if they feel so strongly about it. Bad news for the kids’ inheritance if mum’s assets are whacked with new taxes, though at least she sent two of them to private school so they can still check their privilege. The Italian property transfer tax means selling her Umbria villa will have stung too…

Ireland Asserts Tax Sovereignty in European Commission Legal Battle

Ireland’s Finance Ministry is not holding back in the battle with the European Commission. In a legal briefing over the Apple Tax case the Irish government argues that:

  • The Commission has misunderstood the relevant facts and Irish law
  • The Commission has misapplied State Aid law
  • The Commission wrongly invokes novel legal rules
  • The Commission has exceeded its powers and interfered with national tax sovereignty

There is no doubt that the Commission is trying to use State Aid laws to thwart Ireland’s competitive tax regime over which the EU has no competence. Ironically if Ireland loses it gets a windfall of €13 billion in taxes (about €2,600 per person). That is enough to wipe out the budget deficit for a couple of years…

Nevertheless it is a fight that Ireland wants to win. Post-Brexit Ireland wants to be seen as corporate America’s best friend in the EU. Ireland is looking to a high-tech future across the Atlantic…

75% Think BBC Licence Fee Too High

A study conducted ahead of the parliamentary debate about the BBC’s Royal Charter reveals that 75% of the British public think the licence fee is too expensive. A survey of 1,023 respondents carried out by Strategy Analytics* found 10% said they didn’t pay the telly tax.

Of the one in ten households that admitted to not paying the telly tax 17% were entitled to a free one as they were over 75 years old. This means that 8.3% of all households, some 1.6 million, are not paying for it. Isn’t it time to switch to a pay-as-you-go system? Netflix and Amazon have joined Sky in proving this is easily possible. If the BBC is as well loved as their propaganda claims they will thrive. If it is not they will shrink, rightly so….

David Mercer from Strategy Analytics’ digital consumer practice says, with some understatement, that the BBC “struggles to identify with younger and lower income groups”. Of those that were willing to pay the telly tax, £101.57 was the average figure – 30% lower than the actual price (£145.50). The advent of widespread broadband means that there is no technological barrier to abolishing the outdated telly tax. There is popular support for such a move…

*The interesting thing about this research is that it was not commissioned by the BBC or a rival. BBC commissioned “independent” research always finds that the BBC is wonderful.

Will Self: Big Mac Bigot

McDonald’s plans to set up a holding company in the UK to pay tax on its global income outside the US. UK tax competitiveness reducing the burden for everyone. But not according to Will Self, who interrupted Nigel Farage on Question Time last night to derisively belittle 85,000 Golden Arches employees in Britain and more than a million globally:

“Great jobs! Great jobs for everybody! Mine’s a Big Mac.”

Big gaffe…

Treasury Implements Amy Lame Tax

lame

The Treasury has warned public bodies they can no longer employ staff through personal service companies – a direct challenge to Sadiq Khan to change the tax efficient contract of his aide Amy Lame. Khan’s controversial ‘Night Tzar’ receives her taxpayer-funded £35,000 salary (for two days’ work a week) through her company Amy Lame Ltd, a highly unusual arrangement for a public servant. Chief Secretary to the Treasury David Gauke has today ordered public bodies like City Hall to ensure this is not allowed to happen:

“Public sector bodies should be leading by example… From April 2017, where a public sector body engages an off-payroll worker through their own limited company, that body will become responsible for determining whether the rules should apply, and paying the right tax… the responsibility for determining whether or not the rules apply will remain with the public sector body, who will need to inform the agency or third party of their conclusion.”

Will Khan and City Hall now end Lame’s cushy tax arrangement?

Cushy Property Deal For Amy Lame’s Taxpayer-Funded Firm

lame-house

Sadiq Khan’s aide Amy Lame runs her taxpayer-funded company from the subsidised student accommodation of her partner, who she employs as company secretary. Lame’s City Hall salary is paid into her company Amy Lame Ltd, meaning she pays no income tax. Amy Lame Ltd is registered to her partner Jennie Hogan’s address in leafy Mecklenburgh Square. The property is owned by Goodenough College, where Hogan is a chaplain – it is listed by the College as subsidised accommodation costing around one-third less than market rates. Hogan is a shareholder and company secretary of Amy Lame Ltd. 

It is a cushy deal – Hogan lets Lame run her taxpayer-funded business from her College flat. In return, Hogan gets a share of the profits. All while no income tax is paid. This is a financial arrangement that would make Ken Livingstone proud…

UPDATE: Tory GLA leader Gareth Bacon says:

“Another day, and there are further serious questions for Amy Lamé to answer. The Mayor of London should take control of this situation, reverse his decision to pay her through a personal service company and avoid bringing the reputation of City Hall into further disrepute.”

Hammond’s £4 Billion Tax Bombshell

tax

It isn’t just debt and borrowing that are going up, Hammond has stealthily raised taxes too. Insurance Premium Tax is being hiked from 10% to 12% from next June, a 100% increase compared with November 2015. It was just 5% when the Tories got into power. This means £855 million extra tax per year, £4 billion raised by 2020. Insurance companies are already clear this is going to be passed onto consumers – your home insurance, pet insurance and motor insurance are going up.

UNA Alliance: “This is a significant blow. As a result this will significantly hit the pockets of families throughout the country with significant figures being added to the average buildings and contents policies.”

Axa: “An unwarranted attack on millions of people… affordability of insurance is being fundamentally threatened”

Cuvva: “The Chancellor has just slapped “just about managing” pet owners, home owners and drivers with an unfair tax hike that punishes sensible consumers for taking steps to protect themselves against risk.”

Fiscally conservative low tax Tories give us soaring debt and higher taxes…

Shadow Chancellor Sold Out on 100% Top Rate of Tax

mcdonnell

These days John McDonnell and Jeremy Corbyn are aligned with the right-wing capitalist running dogs of the Labour Party on income tax, favouring a 50% top rate. This is yet another policy position on which they have massively sold out. Just five years ago McDonnell’s pamphlet for the Trotskyite group Permanent Revolution, which Guido yesterday revealed included calls to arm the working class, demanded a 100% top rate of income tax for the richest in Britain. As well as a further 50% wealth tax to appropriate half their assets.

tax

From full communism to Miliband-lite as soon as he became Shadow Chancellor…

Khan’s Troll Aide Paid Via Company, Pays No Income Tax

lame

Sadiq Khan’s new part-time aide and full-time internet troll is to receive her City Hall income through a personal service company. Amy Lame, who has attacked Amazon and Boris Johnson over supposed tax avoidance, paid no income tax last year.

lame2

The Sunday Times reports Lame, real name Amy Caddle, will be paid her taxpayer-funded £35,000 salary for two days work a week via Amy Lame Ltd, allowing her to pay corporation tax rather than income tax despite being a public servant. Amy Lame Ltd is registered to an address in North London’s desirable Mecklenburgh Square, where a flat costs over a million quid. This appointment stinks – Lame is a completely unqualified z-list comedian who has been rewarded for her Labour fundraising with a fake job funded by the taxpayer. And despite her previous virtue signalling is now being allowed to take her salary in a highly tax efficient way…

Open Britain’s Web of Offshore-Owned Offices

open

A Guido investigation can reveal that all three addresses registered by Open Britain, the continuity Remain campaign, are owned offshore. Open Britain and its predecessor Stronger In have campaigned against tax havens – they claimed the Panama Papers were a reason why Britain should remain in the EU. Yet their registered office, St Bride’s House in Salisbury Square, is owned by Rreef St Bride’s Ltd, a company incorporated offshore in Jersey whose address is cited in the Panama Papers. “The EU helps Britain tackle tax avoidance in the wake of the Panama Papers,” Open Britain have said.

What about their HQ? Until the summer they were based at 16 Dowgate Hill, at an office previously used by Stronger In. It was declared by Will Straw to Companies House as his correspondence address. This building is also owned offshore in Jersey by a company called Karlton Ltd. They were grandstanding about tax havens from an office owned in a tax haven…

Recently Open Britain moved to a new office at Tenter House in Moorgate, which is the HQ of multi-millionaire tycoon Roland Rudd’s lobbying company Finsbury. You guessed it, Tenter House is also owned offshore – it is ultimately controlled by Linnet Ltd, “a company incorporated in the Isle of Man and controlled by trusts”. As they campaign in support of an EU crackdown on tax havens, all three offices registered by Open Britain are – by strange coincidence – owned offshore…

Marmite Owner Unilever Books Profits in Switzerland

unilever-switzerlan

Unilever has a discreet – though huge – HQ in Schaffhausen, Switzerland (outside of the EU), through which it books purchases and sales to reduce tax liability. If you didn’t already know it was there you would be hard pressed to notice the blue ‘U’ logo on an upper level window…

Guido’s co-conspirators in Switzerland say purchases are made through the Schaffhausen entity and they are fairly certain Unilever’s intellectual property brand assets take advantage of the friendly tax regime. Could it be that Unilever’s companies across the EU pay heavy royalty fees to their Swiss entity, so as much profitability as possible rolls up there and gets taxed at super-low rates. Schaffhausen is well known in Switzerland (like Zug & Geneva) for offering special sweetheart corporate tax deals that are negotiated individually. Unilever’s €urophilia and pro-Remain campaigning does not extend to its profits remaining in high-tax EU states…

UPDATE: A well informed gnome tells Guido:

The point of Unilever running the purchases through Switzerland, means that the Swiss entity then owns the raw materials (and also the finished goods – the legal/finance people will ensure this).  Then, the individual Unilever country offices around Europe have to buy these materials from Unilever in Switzerland – at hefty price, no doubt including the royalty/IP charges for the Unilever recipes which will also be owned by Switzerland.  This has the effect of moving money to Switzerland from the UK/Germany/wherever else.

Labour Would Double Your Taxes

Former Shadow Chancellor Chris Leslie says his successor’s £500 billion spending plan would double all taxes:

“The worry that I have is this suggestion of £500 billion. I mean, that’s an awful lot of either borrowing or extra taxation. In order to raise it you’d have to double income tax. You’d have to double National Insurance. You’d have to double council tax. And you’d have to double VAT as well.”

In his speech McDonnell quoted John Lennon’s Imagine. “Imagine there’s no money…”

Slave for 20 Years for Tax Man

tax-hmrc_2358937b

New research from the TaxPayers’ Alliance (TPA) reveals that the total amount of tax paid by the average household increased by 2.7% last year. The study found that:

  • Over a lifetime, an average household will pay £826,030 in direct and indirect taxes.
  • In 2014-15, an average UK household had a gross income of £41,027.
  • At this level of income it would take more than 20 years just to pay their lifetime tax bill.

Half your average working life will be spent slaving for the tax man. Is that the type of society we want?

Guardian Editorial Condemns Rivals’ Tax Affairs

guardian

Today’s Guardian editorial says vote Remain because the newspapers backing Brexit are owned by tax avoiders. Yes, really.

“Questions also need to be asked about what lies behind the flag-waving certainties that are currently being served up by so much of Fleet Street. Imperfect as it may be, Europe-wide cooperation is the best hope we have on tax avoidance. And the typical tax-paying patriot may wonder whether they are on the same side on that question as the non-domiciled Lord Rothermere, who owns the Mail, or the Barclay Brothers, who own the Telegraph and have major interests in the Channel Islands and a Monaco address.”

“The typical tax-paying patriot?”

Readers don’t need reminding about the Guardian’s own offshore secrets, the assets held in the Caymans, the Scott Trust tax dodge. The lack of self-awareness is stunning…

Tax Freedom Day Coming Later Under Osborne

osborne tax freedom day

The ASI’s Tax Freedom Day – the first day of the year when you stop working for the state and start working for yourself – is arriving later and later under George Osborne. A few years ago you stopped paying tax and started putting income in your own pocket on around May 28 to May 30.[…] Read the rest

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Shadow Education Secretary Angela Rayner:

“We have no plans to write off existing student debt.”

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