AVOID THOSE 7145 • In your November 28 issue you
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report that haulier Harry Munt is promoting the idea of photographic identity cards for self-employed drivers, similar to the scheme which operates in the construction industry.
Unfortunately this scheme is not intended to be an alternative to PAYE.
The Inland Revenue has taken action similar to that highlighted in your article, against employers in the construction industry, when "714" workers have been deemed to be 'employees' and the employers have had to pick up large bills for arrears of tax, national insurance and in some cases compensation for unfair dismissal.
I wonder if Mr Munt and your readers are aware of the niceties of the construction industry tax deduction scheme? Everyone in the industry, from the national contractors such as Wimpey and Tarmac, down to the humble "lump" worker, has to have an exemption certificate when working for most clients; otherwise 29% tax is deducted from their payments.
To obtain a "714" as these certificates are known, the applicant must have a satisfactory tax record for three years, with a few exceptions allowed — three years in prison being one! Two photographs have to be provided by individuals; one for the certificate, the other to be retained in the tax office for future reference.
The applicant must "substantially use a bank account", "agree to pay tax promptly" along with other petty rules and is then required to appear before a tax official to confirm the likeness before obtaining the "714" work permit. This "714" is then produced to obtain payment, when a "715" voucher is issued and this must be sent to the inland revenue within 14 days.
In recent years heavy fines and prison sentences have been imposed for the mis-use of these documents.
When this scheme was introduced in 1977, the Conservatives described it as 'draconian' and 'gestapo tactics'. It now appears that they believe harassment to be acceptable.
Does the transport industry really want to operate by courtesy of the inland revenue? Do its members really want to stand before big brother to obtain their work permits?
Do the employers want the extra bureaucracy and liabilities?
Think again Mr Mune Asking for the "714" is like a turkey campaigning for an early Christmas! D Brown Stoke-on-Trent Staffordshire