[mister bit]

Not me of course 

Just read it here in the telegraph

Trivially, that £20 you paid cash to get the windows cleaned might not have happened if it cost £40. But if the window cleaner is to pay VAT and then income tax and NI it might well cost £40 to give him the same £20 cash in hand at the end of it. Agreed, dirty windows are not the end of the world but you cannot go about assuming that currently untaxed economic activity would continue if you were to impose taxes on it. It's simply ignorant to do so.

http://blogs.telegraph.co.uk/finance/timworstall/100017439/there-is-no-magic-money-tree-of-uncollected-tax-we-cannot-close-the-deficit-with-more-tax-inspectors/

If you can't be bothered reading all that economic drivel I'll put it briefly

It costs HMRC more to collect the tax off poor window cleaners than revenue received if it didn't ... ergo we are the new 'Boys from the Blackstuff'!

What part would you play? 

I bagsy Chrissie Hey Hey Calm Down Me Rabbits!

[Tom White]

It doesn't say that in the piece you highlighted.  It says that if window cleaners were forced to pay VAT, income tax and NI, that the economic contract may not have happened at all.

In the EXAMPLE it provided, it's pointing out that an increase in tax inspectors does not necessarily mean they will bring in extra cash to the government coffers, because the threat of the inspections will mean prices in window cleaning may have to rise, which means people will not purchase those services anyway; therefore no extra government cash.

I haven't read the whole article though; not closely; so maybe you're referring to another part of it?

[Tom White]

Bit cheeky singling out window cleaners mind; the basic assumption was that we won't be paying any tax or NI contributions on the £20.   

Now, all we have to do is wait for Bumper to post, "So, er, what is tax and NI contributions?"

[mister bit]

Oh right sorry Tosh

I read what I wanted to believe ... cancelled the skeggy caravan for the week ... retrieved the receipts from the kitchen bin ....  

[mister bit]

And we're a trivial matter in the day to day dealings of your average householder! How does that make you feel?

And all those kit makers (unger, ionics etc) how does it make you feel charging a fortune to the unfortunates of society? 

[Splash 4 Cash]

There is a lot of business under the radar which is not taxed.There folks working for the state ripping of the tax man.But let be realistic it would probably cost more to chase it. Its the big fish there are chasing.They can afford to hire experts to diddle the tax man big time. Window cleaning is small fry in the bigger picture. I read in the news the other day in Greece less than 40 % of the public pay tax, its a culture of non tax payment. They have a major problem.