Maurizio – Omnologos

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Petition to the EU Parliament – unfair, double-taxation of UK working families

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Dear Committee on PetitionsI am an Italian citizen, in England since 1997, writing to you now to highlight the unfair treatment of working families, by the United Kingdom's tax system.

Since both I and my wife work (employees) for most of the week, to fulfill our natural aspiration to provide our son with the best possible conditions we decided early on to have him taken care of by a nanny, during day time.

We have strived to follow all rules and regulations. That means I am effectively the employer of my son's nanny, and I pay all her tax and national insurance contributions.

The unfairness of the system is in the fact that the money my nanny is paid with, comes out of my salary as full-time employee, in other words the nanny's _gross_ salary is money that has already been taxed .

Indeed, despite me being an employer, I do not have any right to detract the nanny's gross salary from my total income for tax purposes.

As the situation stands, that money is effectively taxed twice, as the nanny then has to pay income tax of her own.

This is a blatant case of the UK's Inland Revenue taking advantage of my situation as full-time employee to tax my income two times.

I repeat: I do not have any trouble in paying all contributions ought to the nanny, her national insurance, etc.

The system should be re-assessed, with for example a simple mechanism introduced, with the nanny's employer getting taxed on his/her gross salary MINUS the nanny's gross salary, and not regardless of it.

Unfortunately this is far beyond the means of the "little guy", if only because a legal fight with the mighty Inland Revenue would be long and costly.

But the fact that I don't want to risk the financial ruin of my family to fight this particular injustice, does not detract from the fact that thousands of UK families are taken advantage of by the current system.

Is there any way you can help redress the situation? Please do let me know

Written by omnologos

2006/Jan/26 at 16:18:16

Posted in EU, Family, Policy, UK

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