Fair on Taxes and Energy

18 Jan 2012

The mega-rich American heiress Leona Helmsley, known as the Queen of Mean, famously said: "Only the little people pay taxes." It really gets people's goats when they abide by the rules whilst others take the proverbial.

The not-for-profit Forum of Private Business is rightly angry that small companies are being clobbered for slight delays in payments as well as records errors or omissions while the Revenue and Customs body (HMRC) cobbles together sweetheart deals with large companies.

The Public Accounts Committee estimated that such unpaid taxes could top £25 billion.

I agree with the Forum that everyone should pay their taxes but that the perilous plight of small firms should be acknowledged by a more sympathetic and flexible HMRC if these companies are to be a catalyst for much needed economic growth.

I also agree that the HMRC should simplify its systems and curb unacceptable delays in reaching them by phone or post.

The other part of the fairness equation is that individuals pay their dues. The deadline for returning self-assessment forms is the end of January. Over a million people fail to meet the deadlines and face stiff fines. So if you do your returns on-line it's time to get moving.

But it's big business that counts more. Some companies are not only swinging the lead with its tax obligations but others are coining in massive profits at the expense of ordinary consumers. One of the most high-profile examples of this is the profiteering by the Big Six Energy companies which is forcing prices through the roof and leaving far too many people in cold homes as winter envelopes us.

EDF Energy and British Gas have cracked under public pressure and cut their gas prices by 5% - an example others should emulate.

The urgency of this is highlighted by a new Save the Children campaign which aims to ensure that no child is left in the cold this winter. Cold homes harm children's well-being and lower educational attainment and resilience.

The group says energy companies should ensure all eligible for Cold Weather Payments receive the Warm Home Discount. They should also transfer all prepayment meter customers and customers in debt on their bills onto the cheapest tariff. It's the least they should do.

Newcastle Chronicle and Journal

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