Why Harriet may harm tax revenues

The decision by Harriet Harman to tax Air Miles through National Insurance (MW July 31) is bad news all round and perhaps just a little bit silly.

As one of the country’s leading motivation agencies, we ask ourselves where will this end? In one fell swoop it sets a precedent to tax employees on the vouchers they receive when they fill up the car with company petrol.

In fact expenses charged to a personal Barclaycard for any business purpose will now need to be separated, so that tax can be levied on any Profile points issued (that also goes for all other credit card loyalty schemes).

Should international hotel chains now declare to the DHSS who got what room upgrade as a frequent guest so the tax can be charged on the differential?

I’ve got an idea. Why don’t we all agree that from now on, there’ll be no promotions, incentives or marketing at all, so everyone will be equal in the eyes of the law?

Just one small problem. No marketing means no improvement in sales, no improvement in sales means less profits, and less profits means less Corporation Tax!

Swings and roundabouts, I think.

John Fisher

Managing director

Page & Moy Marketing

Milton Keynes


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