Proud To Pay UK Tax
Are we mad… Who wants to pay tax?
Plainly we don’t like paying tax and if we had the chance to vote for a tax free economy, we’d jump at it just like the next business… But we think it’s different everyone making a saving from just an elite few bucking the system, and therefore indirectly robbing the rest of society.
Like all responsible companies we strive to reduce tax where we can (so we can invest in new products and jobs – we’ve created 9 jobs this year alone) but we firmly believe every company globally should pay a fair share. After all that’s what funds schools, health-care, benefits, etc. And if a business trades extensively in the UK, a proportion in taxes should preferably be paid in the UK, wherever the Head Office supposedly is.
So we are not anytime soon setting up a shell company based in Liechtenstein to handle payments from our Bermuda offshoot on behalf of our Macau sales division routing calls for an obviously UK based business. We are proud to be in the UK, we pay our taxes here.
So what’s this all about?
We thought it would be a nice idea to level the playing-field against the big boys by telling customers some facts so they are better informed to decide where to buy from – so we are telling the world how much we contribute to the UK economy. We’ve worked out the total figure comprising the tax we and our staff pay, VAT of course, plus hidden things like business rates (we may actually end up getting a rebate on this as a new company) and the thing lots of multi nationals seem to like to avoid, Corporation Tax. We update the figure regularly and incorporate it in our tax logo, and by clicking on the logo where you see it, it takes you through to the underlying calculation.
Our calculation is simple, and lifted straight from our management accounts.
You can do it too
We welcome other like-minded companies to contact us with their own data and get a link off our site with their own tax logo calculation…
Let’s get a trend going and put some big companies at a disadvantage for once if customers decide to switch where they have allegiances.
Imagine you were the best negotiator in the UK and wanted to set up your own coffee shop or book-shop. You still couldn’t compete however cheaply you sourced your beans and books as competitors (you know who we mean) are avoiding tax and getting grants. They’re putting small traders out of business and stopping start-ups from succeeding – So it’s time to level the playing field a bit.
Is it their fault?
On the one hand it’s not. The financiers within global companies would be failing in their duty and to shareholders if they volunteered to pay more tax than legally required, so voluntary payments are a daft idea. But on the other hand it’s hard to believe at the year end someone in these big companies isn’t patted on the back and bonused on the strength of no tax paid. It has to stop.
Ultimately governments’ worldwide need to solve this with standardised rules written with an ethical slant, this is plainly difficult and may never happen, and in our view its not just about a register of who owns what. The culprits don’t seem to be shy, so lets name those that play and pay fair. So we thought why not try a logo and put the customers in control with improved transparency?
Click here to see how the big brands are doing…
VAT Paid to HMRC (b) 10.0%
Business Rates (c)
Corporation Tax (d)
Total = 22.9%
Notes. (a) Total PAYE paid by staff & employer, (b) Net VAT paid under fixed rate scheme, (c) Business Rates may be reduced in Year 1 as in Enterprise Zone, (d) Corporation Tax estimate as not yet due.