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Powys County Times
25-05-2025
- Business
- Powys County Times
Letter: Great Britain desperately needs bold tax reform
Britain needs a tax revolution. Our tax system is no longer fit for purpose. What was once a means of raising revenue has become a tangled mess of rules, loopholes and contradictions. The UK tax code has ballooned to over 25,000 pages, draining time and money from small businesses and workers alike. Take VAT: a chocolate digestive is taxed, but a plain one isn't, unless the chocolate is inside. Self-employed people can claim for an office chair but not a kitchen table. Even HMRC can't always follow its own rules, with public bodies facing huge back taxes under confusing employment regulations like IR35. This isn't just bad policy, it's a brake on growth. Effective tax rates can climb past 60% for single-earner families. The system punishes ambition, discourages effort and fuels public distrust. It doesn't have to be this way. Imagine a system where income and corporate taxes are gradually replaced by a single, broad-based consumption tax. Every worker keeps their full earnings, and tax is only paid when money is spent. No PAYE, no guesswork, no hidden charges. Businesses would save billions in compliance costs, and prices would become more transparent. Digital tools already make real-time tax collection possible. As cash use declines, so does the shadow economy. Honest taxpayers stop subsidising those who don't pay their fair share. Countries like Estonia and New Zealand have shown that bold tax reform can fuel growth and restore trust. Britain could do the same, if we have the courage to think bigger. Let's stop patching a broken system. It's time to rebuild something fairer, simpler and smarter. Roman Jones
Pembrokeshire Herald
21-05-2025
- Business
- Pembrokeshire Herald
Natural Resources Wales criticised over incident response cuts, closures and tax blunder
NRW accused of risking long-term damage to Welsh environment A SENEDD committee has issued a scathing report on Natural Resources Wales (NRW), accusing the body of failing to uphold its environmental responsibilities and mishandling both public funds and public trust. The report, published this week by the Senedd's Climate Change, Environment and Infrastructure Committee, raises 'grave concern' over NRW's decision to stop responding to so-called low-category incidents—including fly-tipping, minor chemical spills, and low-level water pollution. NRW claims these incidents, which form the bulk of reports to its front-line teams, usually result in no serious environmental harm. The agency says it wants to focus instead on major breaches and preventative work. But the Committee warned that such an approach risks allowing cumulative damage to the Welsh environment. 'We are gravely concerned that Natural Resources Wales is adopting a higher tolerance of risk,' the report states. 'Low-level pollution can still have a damaging impact, especially over time. This change in approach could result in real harm to our natural environment.' Stretched resources, legal obligations The report acknowledges that funding pressures have left NRW 'stretched too thin' to meet its legal duties. However, it insists that consistent enforcement and visible presence across Wales are essential. Visitor centre closures criticised The Committee also condemned NRW's decision to close three key visitor centres—at Bwlch Nant yr Arian, Ynyslas, and Coed y Brenin—without a clear plan to replace services. Although NRW is now seeking commercial partners to take over food and beverage operations at the sites, the report states the closures were 'premature' and have damaged public confidence. 'New proposals should have been developed before the centres were closed,' the report says. 'We urge NRW to publish a clear timetable and communicate transparently with affected communities.' £19 million tax blunder A separate section of the report highlights a serious financial error. NRW's failure to correctly follow IR35 tax rules for contractors led to the Welsh Government being forced to pay £19 million to HMRC. 'This is a serious governance failure,' the Committee said. 'It is highly regrettable that taxpayers' money is being diverted from vital services to pay for such errors.' NRW said it has since overhauled its procedures and used external consultants to avoid a repeat. But the Committee is calling for a full independent review and further reassurances. NRW defends changes In a statement issued on Tuesday (May 20), interim chief executive Ceri Davies defended staff and emphasised ongoing reforms. 'We are not standing still,' she said. 'We're focused on building a more agile and future-ready organisation. Our goal is to make sure every pound we spend delivers maximum environmental value.' NRW confirmed it will prioritise incidents that pose the greatest risk to public health or the environment, with an increasing focus on prevention and compliance. While some visitor centres are now unstaffed, public access to trails, car parks and play areas remains open. NRW says it is working with local businesses and communities to provide replacement services. With Wales facing intensifying threats from climate change, biodiversity loss and pollution, the report concludes that robust and proactive environmental oversight is more vital than ever—and that NRW must urgently rebuild trust and capacity.
Pembrokeshire Herald
21-05-2025
- Business
- Pembrokeshire Herald
Call to end ‘wild west' of estate maintenance charges in Wales
NRW accused of risking long-term damage to Welsh environment A SENEDD committee has issued a scathing report on Natural Resources Wales (NRW), accusing the body of failing to uphold its environmental responsibilities and mishandling both public funds and public trust. The report, published this week by the Senedd's Climate Change, Environment and Infrastructure Committee, raises 'grave concern' over NRW's decision to stop responding to so-called low-category incidents—including fly-tipping, minor chemical spills, and low-level water pollution. NRW claims these incidents, which form the bulk of reports to its front-line teams, usually result in no serious environmental harm. The agency says it wants to focus instead on major breaches and preventative work. But the Committee warned that such an approach risks allowing cumulative damage to the Welsh environment. 'We are gravely concerned that Natural Resources Wales is adopting a higher tolerance of risk,' the report states. 'Low-level pollution can still have a damaging impact, especially over time. This change in approach could result in real harm to our natural environment.' Stretched resources, legal obligations The report acknowledges that funding pressures have left NRW 'stretched too thin' to meet its legal duties. However, it insists that consistent enforcement and visible presence across Wales are essential. Visitor centre closures criticised The Committee also condemned NRW's decision to close three key visitor centres—at Bwlch Nant yr Arian, Ynyslas, and Coed y Brenin—without a clear plan to replace services. Although NRW is now seeking commercial partners to take over food and beverage operations at the sites, the report states the closures were 'premature' and have damaged public confidence. 'New proposals should have been developed before the centres were closed,' the report says. 'We urge NRW to publish a clear timetable and communicate transparently with affected communities.' £19 million tax blunder A separate section of the report highlights a serious financial error. NRW's failure to correctly follow IR35 tax rules for contractors led to the Welsh Government being forced to pay £19 million to HMRC. 'This is a serious governance failure,' the Committee said. 'It is highly regrettable that taxpayers' money is being diverted from vital services to pay for such errors.' NRW said it has since overhauled its procedures and used external consultants to avoid a repeat. But the Committee is calling for a full independent review and further reassurances. NRW defends changes In a statement issued on Tuesday (May 20), interim chief executive Ceri Davies defended staff and emphasised ongoing reforms. 'We are not standing still,' she said. 'We're focused on building a more agile and future-ready organisation. Our goal is to make sure every pound we spend delivers maximum environmental value.' NRW confirmed it will prioritise incidents that pose the greatest risk to public health or the environment, with an increasing focus on prevention and compliance. While some visitor centres are now unstaffed, public access to trails, car parks and play areas remains open. NRW says it is working with local businesses and communities to provide replacement services. With Wales facing intensifying threats from climate change, biodiversity loss and pollution, the report concludes that robust and proactive environmental oversight is more vital than ever—and that NRW must urgently rebuild trust and capacity.
Daily Mirror
29-04-2025
- Business
- Daily Mirror
HMRC rolling out new update tomorrow affecting millions of workers
CEST is an online tool on the HMRC website that determines a role's employment status. Specifically, it works out whether 'a worker on a specific engagement should be classed as employed or self-employed for tax purposes" In a new update, HMRC will " revise" its Check Employment Status for Tax (CEST) online tool for self-employed workers on April 30. The revision was announced in a tax update published yesterday, which was titled: "Tax Update Spring 2025: simplification, administration and reform summary." The document also included other measures aiming to simplify taxation and save taxpayers and businesses time, and support economic growth. The Check Employment Status for Tax Tool - commonly referred to as CEST - is an online tool on the HMRC website that determines a role's employment status. Specifically, it works out whether 'a worker on a specific engagement should be classed as employed or self-employed for tax purposes.' The update is part of the government's plan to clamp down on tax avoidance through IR35, which is a piece of UK tax legislation governing self-employed tax rules for contractors. It's designed to close a loophole in the tax system, where workers could set up a limited company structure to pay less tax. Essentially, it is a set of rules determining whether a contractor is genuinely self-employed or an employee 'disguised' as a contractor for tax purposes. There are approximately 4.5million self-employed Brits, but the self-employed are not affected by IR35. It is only those providing their services through a limited company who are affected by the legislation. According to the document, the changes will make it "easier for CEST's users to use the tool." It read: "HMRC is revising its Check Employment Status for Tax (CEST) digital tool with effect from 30 April 2025. These changes will make it easier for CEST's users to use the tool." To support taxpayers, HMRC will also publish revised guidance on how to answer the changed questions. The tax department added that it would be committed to standing behind the tool's outcomes. The document said: "To support these changes, HMRC will also publish revised guidance that offers help on how to answer the revised questions. HMRC is committed to standing behind the outcomes of this tool where it has been used correctly.' Since its introduction in 2017, the CEST tool has been used millions of times to help determine the IR35 status and employment status of freelancers, contractors, and self-employed workers. Qdos CEO, Seb Maley, noted that the government was right to revise the CEST tool. He said: "In its current form, it's a blunt instrument for determining if an individual is genuinely self-employed or should be paying employment taxes. Join Money Saving Club's specialist topics 'Changes that help users answer the questions it poses – while welcome – won't address the elephant in the room, which is that relying solely on CEST to decide employment status still poses a risk. 'Employment status can be a minefield and no stone should be left unturned when determining it. The sheer cost of getting things wrong from a tax perspective can be staggering. 'We'll await the changes, but in the meantime, it's worth pointing out that users – whether freelancers, contractors or businesses – can and ideally should get a second opinion on answers provided by CEST.'
