Monday 23 July 2012

Nudge Unit Wants HMRC To Overclaim Tax

In what has to be the most cretinous suggestion to have come out of Number 10 thus far in the tax avoidance witch hunt, David Halpern, head of the Government's Behavioural Insights Team (aka 'The Nudge Unit'), has suggested that HMRC should deliberately overclaim taxes so it has to pay taxpayer a rebate at the end of the year.

At the Civil Service Live event Halpern said "it would be better for us to modestly overclaim tax" because when HMRC underclaims people become irritated and tempted to cheat.

He then went on to talk ever more bollocks about the "the psychological boost of getting a rebate" - and the possibility that people spend rebates:
"When people get tax back from HMRC, they feel great.

In the US, people love it, and they spend the money differently too. So we're trying to persuade you guys [HMRC] that's what you should do. Make sure you have a certain amount of outcome which means you have to give people their money back."
Our taxes are paying the salaries of cretins like Halpern!

Tax does have to be taxing.

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  1. If they did as he suggested they wouldn't need RTI

  2. Anyone have a handle on the total number of fuckwits "employed" in this and similar roles?

  3. We have moved so far away from the aims of the old Inland Revenue. The remit then was to make people pay the right amount of tax at the right time.

    When did this change?

    It is so depressing watching the drawn out demise of what was, an efficient organisation

    1. Hey, I might not have copyright on "right tax at the right time" but surfing on the back of my board ain't so good bro'!
      However, as we live in a Democratic Dictatorship be my guest.
      The only criticism is if the old IR was an efficient organisation just what does that make HMRC?!

  4. Sounds like state sponsored fraud to me.

  5. I agree with a previous poster - HMRC's remit is to make people play the right amount of tax at the right time.

    Indeed, it is a fundamental principle that governments cannot tax without the consent of Parliament. In other words, you only pay what the statute tells you - not a penny more, not a penny less. By deliberately overclaiming the amount due, HMRC would, in my opinion, be breaking the law.

    There is of course a huge advantage in doing so. By overclaiming, HMRC has access to a very cheap loan from taxpayers, without the bother of having to go to the money markets.

    We have been hearing so much about tax and morality from Ministers these days - I wonder whether David Gauke is willing to make the following statement:

    "It is morally wrong for a Minister of the Crown to suggest that the tax authorities should deliberately claim more than the amount due from hard working taxpayers."

  6. Haven't they been doing this for workers in the Construction Industry for years?

    Tax used to be deducted at a rate of 18%, when tax and NI waspayable at a combined rate of 30%

    Now the tax and NI is payable at 29% on a lower amount (because of higher personal allowances), but CIS tax is deducted at 20% or 30%.

    The effect is that HMRC hold onto more of your money for up to 12 months and then often, from my experience, take several months to repay it.

  7. If kids are ever 'rewarded' for their little spy reports, one, wouldnt that be tax free? If so, that is teaching and encouraging them to earn tax free money, thus defeating the whole object of the exercise?
    Also, it is illegally, therefore, because of payments, 'employing and exploiting' child labour?
    Wouldnt that become a human rights issue?
    Any thoughts on that anyone?