I am sure many of you have followed the Starbucks saga. Starbucks is of course not alone and Im sure over the coming months we will hear more about how these big international companies wriggle through their obligation to pay a proper and fair share of their UK taxes.
What amused me was that Starbucks managing director has now announced that we are still working through some of the calculations but we believe that we could pay or pre-pay somewhere in the range ... Hang on I thought paying tax is a mandatory obligation; paying tax is part of the social contract a business has with society. I didnt know that it is a voluntary arrangement whereby a company decides what the fair share of tax is. Our clients do not have this option and I think most honest business people struggle with this concept.
I wonder why HMRC is spending so much time and effort chasing the small guy (just look at the penalty regime if you submit your tax return late) and is quite happy to let the big guys get away with murder.
We would love to hear your feedback on the Starbucks saga and if you have any questions or require a business accountant then please let me know.