MOLLY MAID Supports Government's Quest to Clamp Down on Tax Avoidance

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• Publié par: molly-maid
• Nombre de lectures: 8
• Langue: English

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MOLLY MAID Supports Government's Quest to

Clamp Down on Tax Avoidance

PR Newswire

LONDON, July 25, 2012

LONDON

,

July 25, 2012

/PRNewswire/ --

In response to the wide-spread national broadcast exposure supporting the

Government in their quest to clamp down on tax avoidance, MOLLY MAID

continue to reiterate that there are certain responsibilities that need to be met

by businesses, the Government and consumers alike to create a fair playing

field.

As the nation's largest employer in the UK's £1.6 billion pound domestic

cleaning sector*, MOLLY MAID believe that it is the responsibility of the

businesses themselves to charge VAT (over the legal threshold) on services

provided, to declare their revenues and to pay VAT and tax that are therefore

due to the Government.

While supporting the Government in this quest, MOLLY MAID feel that it is also

the Government's responsibility to ensure that these businesses are legitimate

and are appropriately regulated.

MOLLY MAID also believe that some of the responsibility should also fall with the

consumer. We all need to weigh up the consequences of not paying VAT on

services where they are due and the far reaching implications this has on the

general health of our economy.

In the UK domestic cleaning sector alone, approximately £500 million

[1]

of lost

tax revenues could be collected in an industry worth £1.6 billion of which £1.5

billion is conducted by 'underground' businesses. If this industry alone were to

be more closely regulated, this could play such a pivotal role in helping to get

the country's finances back in order and significantly recoup vital taxes for the

economy.

Whilst it is not illegal for consumers to pay cash for home services, it is

imperative that businesses recognise their responsibilities to charge VAT and

that, in turn, as consumers we all understand the importance of using

legitimate businesses to carry out the work.

One potential solution for the government to consider, says Jonathan Holden,

Vice President & General Manager of MOLLY MAID UK Ltd, "is to adopt a similar

model to the one used with great success in

Sweden

. Broadly speaking the tax

model there allows hard working families with time constraints, the ability to

claim tax relief on legitimate services purchased around the home. This has

encouraged many skilled people back to work whilst giving legitimate home

services more business. Consumers get better value for money through the tax

relief and the Government get the taxes that are due to them. It is a win-win

solution for all which has helped to move domestic cleaning work into the

above ground economy and by doing so has created thousands of job and new

Government revenues."

*Source: MORI market research survey commissioned by MOLLY MAID in

September 2010

Note 1. £500m lost revenue calculated on the basis that:

£1.575 billion is what black market is worth. At 20% VAT the government is

missing out on £380m on VAT, notwithstanding income tax and NI.

MOLLY MAID is one of the world's largest professional domestic cleaning

services, carrying out 1.8 million home cleans every year worldwide. Initially

founded in

Canada

in 1979, MOLLY MAID currently trades in

Canada

,

USA

,

Japan

,

Portugal

, and the UK.

MOLLY MAID offers a 100 per cent guaranteed, flexible and affordable

domestic cleaning service. Staff are fully insured, work in teams of two and

arrive in MOLLY MAID branded cars, bringing with them all the necessary

cleaning equipment and supplies.

MOLLY MAID came to the UK in 1984 and has grown from a standing start to 71

Franchise Owners nationwide and a current annual turnover of over £15.5

million in 2011.