Jeremy’s tax return – the real problem

Like many of my generation I have made a transition from paid employment, through self-employment, to living on pensions with the odd bit of extra income.   Given this, for over a decade I have prepared my own tax return. It is becoming increasingly less arduous; my pensions are taxed at source and this year’s extra income amounted to £25.86. This was the royalties from six copies of A Handbook for Training Strategy; five of them were sold overseas. I wrote the book in 1994 and it is now hopelessly out of date. I wish I could find a way of returning the money to the purchasers.

Having completed and submitted returns for some time, I know that it is easy to miss a deadline, make a mistake, or overlook some detail, so I have some sympathy with Jeremy Corbyn. Last year he incurred a fine for late return. This year he made a big public statement by making his tax return publicly available in order to shame rival politicians into taking a similar action. Unfortunately it has all gone wrong and has proved to be another embarrassment, albeit minor. It is worth reflecting on why this is the case and what lessons can be drawn.

The tax return that Corbyn has published contained a small technical error. His £27000 salary as leader of the opposition was declared, not as income from employment, but as a state benefit. Tax on this element of salary was paid in full; there was no implication or any attempt to dissemble; it was simply an entry put in the wrong place. This is no big deal to the Inland Revenue, but raises an important question. Given that taking the return into the public domain was a planned political offensive, was it thoroughly checked before it was issued and if so by whom? Were adequate processes in place and were the individuals responsible for implementing them competent in the jobs for which they are paid? Had they ever completed a tax return themselves?

Inevitably a minor gaffe led to derision from a hostile press who, in a dull political period, are just waiting for the next dropped ball; the Leader’s office issued a predictable petulant response and yet another chance for a more serious debate was missed.

Labour supporters in the constituencies may well shrug their shoulders but, to the electorate as a whole, competency in office does matter. Those of us who have worked most of lives in corporate roles simply cannot understand why the even the simplest things can’t be done effectively at this high-profile and well-resourced level.

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