Not many people are aware of the fact that the UK Government giveaway in excess of £52,000,000 every year in lost taxes which could be used to improve the quality of life for all its subjects.
You may be wondering how this is possible in this day and age of technology which monitors the income tax returns of the nation as a whole.Unfortunately there is a loophole in the system which allows the loss of such a quantity of money which only the minority of tax evaders exploit to their own benefit. I refer to a situation where it is possible to earn in excess of £200 a day tax-free without detection by the benefits agencies or the tax office.
We have all read in the media about the amount of scrap metal which is being stolen and traded for cash on the so called black-market for vast sums of money. Let me firstly inform the reading public that a black-market doesn’t exist as it is part of normal daily life where scrap metal is collected on a daily basis from homes or business premises and taken to scrapyards and exchanged for cash.
This is not in itself a crime to trade in this manner as in some areas it is classed as a traditional past time by the Police as in the case of The West Midlands.
The beneficiaries of the £52,000,000 giveaway are the following:
The Unemployed, Gas Engineers, Electricians, Plumbers & Builders
It would be wrong of me to accuse all of the trade’s persons aforementioned of tax evasion as I don’t have access to their personal accounts but I am only generalizing in this instance. I apologise unreservedly to those of you who do pay your taxes on the scrap you trade from your daily business as I only wish to highlight what is gained by those who don’t.
Currently there are reported to be 10,000 scrapyards in the UK which allows the following example:
Lets assume for arguments sake that 2,000 traders deliver on any give day 1 ton of light iron to 2,000 scrapyards and are paid £100ton (current rate of exchange). It doesn’t take a mathematician to workout that £200,000 is paid out in cash to the traders, multiply this by 5 (days a week) £1,000,000, multiply this by 52 (weeks of the year) £52,000,000.
In the above example I have used light iron as a tool to highlight what potentially is collected for remuneration as the following higher scrap value of the various metals collected would confuse this issue still further:
Copper £2000 ton, Brass £1900 ton, Stainless Steel £800 ton, Lead £900 ton,
Household Wire £1000 ton, Aluminium £600 ton, Irony/ally £180 ton, Electric Motors £350 ton & Nickel £14,000 ton.
You are probably wondering where the loophole is in the system that allows the £52,000,000 to be lost, I will now explain. As I have already stated the loophole is exploited by The Unemployed, Gas Engineers, Electricians, Plumbers & Builders. So lets take them individually and access how it is done.
The Unemployed
The majority of scrap metal collectors that we see and hear trawling the streets of the UK are unemployed people who go to the Job Centre every two weeks and claim JSA, Income Support, Disability Benefit having done so to supplement their income they jump in a vehicle and collect scrap metal from households and business premises.
Having collected a vehicle full of scrap metal he/she takes it to a scrapyard who accepts a fictitious name, address and a vehicle registration number without being asked for ID in order to be weighed in. After unloading the vehicle he/she receives a weight ticket displaying the weight value and collects the money from the cash office.
Having received the cash for the load the weight ticket is filed in the nearest dustbin and he/she walks away with his/her tax-free cash with no trace of his/her identity. This system of collecting/unloading is employed by him/her as many times a day as possible and up to 6 days a week which can result in earning over £1000 per week in tax free untraceable cash.
Gas Engineers, Electricians, Plumbers & Builders
Scrap metal to these guys is classed as a tax-free bonus at the end of a hard weeks work. The prime example is a customer who has an old copper boiler in the airing cupboard which no longer functions properly. They ring the engineer who calls and gives a price for a new one to be fitted including new pipe work.
He gets the job and calls around a few days later and installs the new one, then he assures the customer that the old one needs to be taken away for one reason or another and disappears with a scrap boiler worth £20 plus the old pipe work but doesn’t include it in the price.
The council workers are the same they too see all copper/brass items as their divine right to a tax free bonus as if you notice they don’t leave taps, pipe work, boilers or immersion heaters when the finish a job on your house. They take them home and save all their ill-gotten gains till the end of the week. When they feel the need they too visit a scrapyard of their choice and offload their scrap items having given a false name and address and collect their tax-free untraceable cash having binned the weight ticket.
£52,000,000 is a conservative estimate, as you then have to take into consideration all the JSA, Income Support, Disability Benefit, Housing Benefit, and Council Tax Benefit that is being paid to the unemployed collectors on a weekly basis.
What is the UK Government doing about it?????????
Basically Bugger All!!!!!!
That is not exactly the truth as in December of 2005 they legislated that it was a criminal offence to carry someone else’s waste (Scrap Metal) without a waste carriers licence.
According to the Environment Agencies Website (Duty of Care) the penalty for carrying someone else’s waste is an unlimited fine & upto 5 Years in Prison if you are caught carrying it without a licence and the same penalty for the provider of the waste.
It also elaborates who needs to have a licence:
Anyone who transports someone else’s waste including people who obtain waste through the course of their normal day to day business affairs (Gas Engineers, Electricians, Plumbers & Builders).
I bought one, but I have to say that it was a complete waste of money as the scrapyards and the householders who supply the scrap metal couldn’t give a toss.
Unfortunately the authorities are under the impression that scrap metal collectors don’t have a brain cell between them and have decided to instigate roadblocks to check the vehicles. What they overlooked was that most people now have a mobile phone and that if they stop one vehicle a call is made and word goes around like wildfire, others avoid the area or stop work altogether.
It has been reported in the local press that the West Midlands Police have apprehended 500 thieves of scrap metal since August 2007 but I have to ask myself what they propose to do with them in court. All the prisons are full, so I suppose a slap on the wrist will be in order and a fine of some description.
Does this serve as a deterrent, I don’t think so as we have already seen what fine could they impose that couldn’t be earned tax free by trading in yet more scrap metal which makes it a vicious circle.
Is there a solution to the problem???????
Of course there is, I have the solution but unfortunately the powers that be are not available to listen (Letters sent to Home Secretary, Environment Secretary & West Midlands Police). They already have the keys in place, they just don’t know how to use them to their advantage and solve the following in one foul swoop:
Scrapyards bought into line
Benefit Fraud
Tax Evasion
Metal Theft
Unlicensed Traders
I think it was the £50,000 I asked for which put them off, but if you look at it as a percentage of the £52,000,000 a year they gain it isn’t a great deal of money.
I hope you find my imput interesting and await any comments you may have