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	<title>The Horsell&#039;s Mouth &#187; Jacqui Smith</title>
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		<title>Hysteria at the expense of progress</title>
		<link>http://www.thehorsellsmouth.com/2009/10/hysteria-at-the-expense-of-progress/</link>
		<comments>http://www.thehorsellsmouth.com/2009/10/hysteria-at-the-expense-of-progress/#comments</comments>
		<pubDate>Mon, 12 Oct 2009 12:15:22 +0000</pubDate>
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				<category><![CDATA[news]]></category>
		<category><![CDATA[politics]]></category>
		<category><![CDATA[Fees Office]]></category>
		<category><![CDATA[HMRC]]></category>
		<category><![CDATA[Home Secretary]]></category>
		<category><![CDATA[Jacqui Smith]]></category>
		<category><![CDATA[MPs' expenses]]></category>
		<category><![CDATA[political credibility]]></category>

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		<description><![CDATA[Let&#8217;s imagine a scenario. You&#8217;re self-employed and have diligently paid your taxes for a number of years. There have been, in that time, several instances where you have sought tax advice from HMRC on what was and wasn&#8217;t acceptable to it. You have always followed the advice that you have been given and naturally, you have [...]]]></description>
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<p><strong>Let&#8217;s imagine a scenario</strong>. You&#8217;re <strong>self-employed</strong> and have diligently paid your <strong>taxes</strong> for a number of years. There have been, in that time, several instances where you have sought tax advice from <strong>HMRC</strong> on what was and wasn&#8217;t acceptable to it. You have <strong>always followed the advice that you have been given</strong> and naturally, you have been <strong>as tax-efficient as possible</strong> and taken advantage of whatever <strong>tax breaks were on offer</strong> and <strong>accounting methods were practical</strong>.</p>
<p><em>Then, the government of the day decides that the system should be changed</em>. It enacts a <strong>retrospective law</strong> meaning that tax breaks that you were advised to take previously <strong>no longer apply</strong> and the tax-efficient accounting methods you used <strong>are illegal</strong>. It passes legislation to say that those who used those tricks should be <strong>named and shamed in the national press</strong> and will be <strong>retrospectively charged</strong> for the benefit they derived.</p>
<p>Half the population is issued with <strong>letters from HMRC</strong> surcharging them for tax liable under methods that were <strong>cleared by tax authorities at the time</strong>. They are given a deadline to pay up and are <strong>photographed on their way to tax offices</strong> with chequebooks in hand. Half <strong>lose their jobs</strong>.</p>
<p>Now, I admit there are a few <strong>key differences</strong> between the above and MPs expenses. It&#8217;s <strong>taxpayers&#8217; money</strong>, for one (although the ownership of money to me is a red herring). They won&#8217;t be much out of pocket and some of them, just a few, have <strong>probably committed criminal offences</strong>. But the principle is similar &#8211; here we have a group of people who operated under a code of understanding run by a responsible body &#8211; the <strong>Fees Office</strong> &#8211; and who have had <strong>retrospective justice</strong> foisted on them by a <strong>hawkish media</strong>.</p>
<p>Yes, the system was evidently <strong>over-generous</strong> and <strong>of a previous time</strong>. It needed &#8211; and still needs &#8211; <strong>serious reform</strong> and <strong>clarity</strong> for MPs and public alike. And I certainly don&#8217;t hold any candle for <strong>Jacqui Smith</strong>, one of the worst <strong>Home Secretarys</strong> this country has ever suffered.</p>
<p>But I don&#8217;t understand the <strong>fair play</strong> in saying to anyone that the rules have now changed and that they will be applied in such a way as to make it necessary for you to make a <strong>public apology</strong> for things that were at the time <strong>entirely within the system</strong>.</p>
<p>To those who say that MPs should have known that the system was rotten and not claimed for these more outlandish items I simply say &#8211; <em><strong>would you have done the same</strong></em>? Our DNA is impregnated with selfish behaviour that only the best will overcome and grabbing everything to which you are legally entitled is a desire not limited to MPs.</p>
<p>The <em><strong>Telegraph</strong></em> will no doubt invite us to revisit time and time again its <strong>one decent scoop of the last decade</strong> but <em>if we are to build trust in the system once again, we need to know when it is time to act for the future rather than dwell on the past</em>.</p>

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