PRIME MINISTER David Cameron has admitted that the National Insurance holiday initiative has not worked.
Only 10,000 businesses have taken up the NI holiday scheme in around 18 months, way below the projected figure of 132,000 a year, as first reported by Accountancy Age. The scheme, which offers a tax break for the first ten staff hired by new companies, was designed to encourage start-up businesses outside of the South East.
But in a speech to an Intuit conference in Maidenhead, Cameron (pictured) said: “The scheme has not worked as well as we hoped. It was too complicated and too targeted at specific businesses. It resulted in around 1,000 jobs but that was not enough.
“You can come up with all the schemes in the world but there’s no scheme that’s as good as controlling spending and keeping taxes down. Just like every business needs to control costs, governments aren’t any different,” he added.
At HMRC, Dmitri Surendran was responsible for leading the London team of the offshore, corporate and wealthy unit of the fraud investigation service
Research also finds that 84% of businesses believe that the government has not provided enough information about digital tax plans
A total of £16bn was lost through tax fraud last year, according to estimates released by Pinsent Masons
Additional tax a result of compliance investigations by HMRC, but overall revenue falls