Treasury has ignored low income non-doms

The government has ignored the impact its new non-dom policy will have on low
and mid-income workers the Treasury committee said today as it released its
report on the 2008 Budget.

Committee chairman John McFall said the government has placed ‘too much focus
on the very wealthy non-doms’ and taken ‘almost no notice’ of low and middle
income foreigners working in the UK.

The failure of the government to fully consider the impacts on these groups
could place a substantial administrative and enforcement burden on HM Revenue
& Customs.

‘We have highlighted a serious risk that HMRC will be faced with the problems
of potentially millions of foreign workers, either seeking advice or unwittingly
in breach of the new law,’ McFall said.

The committee report also fuelled anger in the Labour Party about the
decision made by Gordon Brown in his last Budget in 2007 to scrap the 10p band.

The committee MPs said the main people who be hit by the change would be
people who earned only £18,500 and were younger than 65. This was an
‘unreasonable target for raising additional tax revenues to fund the benefits of
tax simplification’.

Further reading:

Find the full report

Brown under fire over 10p starting tax

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