Knock-on costs

Published on 24/12/2012 00:00

Starbucks, Amazon and Google have been accused of tax avoidance by MPs – which is a bit rich coming so soon after the great expenses scandal and house swapping to avoid tax. Nevertheless, the companies argued they provided employment for thousands of people and they paid tax and national insurance. What was not said was that the majority of these employees were low paid and, therefore, that they were eligible for welfare benefits, child allowances and so on.

It has been calculated that a married man with two children had to be earning £26,000 to be paying more in tax and national insurance than the family received in welfare. If the family lives in social housing or receives housing benefit, then the £26,000 jumps to more than £30,000. Perhaps this will give our MPs the incentive to ensure that all companies pay taxes on profits that have been earned by low-paid workers.

Clark Cross

Springfield Road

Linlithgow, West Lothian