Stat of the day: 7,400

The amount of people the Treasury estimated would pay the new remittance fee, which turned out to be wrong.

by
Last Updated: 09 Oct 2013
Tax is complicated enough to understand at the best of times, but even the Treasury’s having problems getting its head round the maths. It’s confirmed that figures given to parliament by Exchequer Secretary to the Treasury David Gauke were, er, slightly over-optimistic – after errors were spotted in its calculations.

Gauke said that 7,400 people would pay a new remittance fee for non-doms of £50,000 (the fee non-doms are charged to prevent them paying tax on worldwide income), rising to 9,600 by 2013. But analysis by Accountancy Age spotted a flaw in the figures – around 3,500 individuals will switch to another tax system, avoiding the remittance charge. So based on the Treasury’s analysis, it expected a surge of 5,700 new people willing to pay the £50,000 fee over the next two years, which it’s now admitted was slightly optimistic. Ah well – everyone makes mistakes, eh?

Find this article useful?

Get more great articles like this in your inbox every lunchtime

Subscribe

Get your essential reading delivered. Subscribe to Management Today