Connect with us

Hi, what are you looking for?

Investing

New petition calls for improved tax solutions for home service industry

Cleaner

Rune Sovndahl, Founding Partner of leading service provider Fantastic Services, is petitioning to clean up the home service industry.

Sovndahl polans to do this through a “Swedish style” scheme that will remove cash in hand payments through government subsidised home services – enabling tax rebates for customers and reducing VAT for registered home service companies – in a campaign that aims to stimulate the jobs market.

Rune, who Co-Founded Fantastic Services in 2009, believes the initiative would have a positive effect in creating more domestic cleaning and home services jobs in an industry worth £6 billion per year in the United Kingdom.

He says, “the UK government is losing millions of pounds each year in under the table payments made to unregulated cleaners, plumbers, gardeners, handymen, builders and electricians; and I call upon the government to implement tax rebates that can be used to move people away from low quality work provided by so called “cowboy professionals”.

“We need to provide piece of mind for both the client – that they are dealing with a legitimate business; and to service professionals – that they will have a full legal right to be paid for delivering the service. “

The scheme has been highly successful in countries such as Sweden and Germany, and will allow households to deduct up to £7000 per year in tax when they use a registered service company, providing a cleaner or a tradesperson at their home.

Rune continues, “Historically, the markets have demonstrated that when an industry is transparent and there is greater regulation from the government, it creates further demand for those goods and services. This would help create opportunities for individuals who are interested to start their own business – maybe they are unemployed for a long time or maybe they were made redundant recently and wish to use the redundancy pay package for a new initiative. It’s a win win for the government, home service industry, clients and workers alike.”

In addition to subsidy payments by the government and tax rebates for customers; the proposed VAT reduction as part of the initiative is designed to aid larger companies who are employing cleaners and other professionals to deliver services.

Rune says, “a VAT reduction for home services will help stimulate legitimate, tax paying businesses not only to avoid redundancies, but also to be able to hire more people through those savings.”

He continues “adopting the example of the Swedish style model will provide long term solutions for industry workers, many of  whom cannot work from home, and have received very little support throughout the pandemic. With Britain no longer part of the European Union, now is the time to implement a better forward thinking system that will help renavigate the sector and stimulate the gig economy.”

The revised tax system was raised by Rune in a letter to The Chancellor last summer – where he is now calling on industry leaders to support the campaign – already gaining backing from leading sector businesses including Aceify, Housekeep, Uspaah, Koru Kids, Slip Safety Services and Oxwash, as further pressure is being applied to government – with a petition to improve tax solutions for the home service industry and create jobs – launched this week.

Read more:
New petition calls for improved tax solutions for home service industry

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

Pag-IBIG Fund has financed 5,411 socialized homes for minimum-wage and low-income members in the first four months of 2022, its top executives said today....

Economy

SRI LANKA’s impending default on $12.6 billion of overseas bonds is flashing a warning sign to investors in other developing nations that surging inflation...

Economy

A WOMAN observes a period calendar tracker app on her mobile phone at her home in Madrid, Spain, May 16. — REUTERS MADRID —...

Economy

WASHINGTON — The US Justice Department on Tuesday sued Steve Wynn, the former CEO of Wynn Resorts, to compel him to register as an...

Economy

WASHINGTON/SEOUL — Despite battling a wave of suspected coronavirus disease 2019 (COVID-19) infections, North Korea appears to be preparing to test an intercontinental ballistic...

Economy

IN MANY PARTS of the world, inflation is climbing quickly, including in the US, where I live and where inflation is now north of...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.