Tuesday, January 29, 2008

Fraudulent leavings

Whilst your humble Devil is more than happy to excoriate our hideous politicians for their corruption, one must not forget that some members of the electorate are not exactly above fraudulently stealing from other taxpayers.
Every year taxpayers lose at least £5bn to benefit fraud and error- £200 for every single British household.

£3bn is down to benefits administered by the Department of Work and Pensions, especially Housing Benefit, Income Support, and Jobseekers Allowance (see eg this blog and the NAO summary above). The rest is largely down to HMRC via its administration of Bottler's convoluted tax credits (eg see this blog).

And remember this: the c£5bn pa we lose in benefits/tax credit fraud is just the tip of a very large iceberg. We estimate that overall taxpayer losses to fraud- including old favourites like VAT carousel fraud and the broader black economy- probably amount to around £60-80bn pa.

That's around £3,000 pa for every British household, and for that kind of money we could abolish Stamp Duty, CGT, and IHT outright, and still have enough left over to cut the standard rate of income tax to 8p.

Do go and read the rest of Wat Tyler's post. As you do, just consider the fucking colossal sums involved...

1 comment:

Anonymous said...

Simple m' dear Devil, multiple NI numbers. Hang around outside any of the recent rash of newly established mobile phone outlets that cater specifically to an African clientele and you will see NI cards being handed over 3 and 4 at a time as the recipient babbles into one of several handsets.

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