According to Trade Union Congress research published on Wednesday by YouGov, the general public believe large companies and wealthy individuals dodge taxes too easily, which has sparked an angry response from business leaders.

In the poll, three out of four people agreed it was too easy for very rich people to get out of paying a fair level of tax, while seven out of 10 said companies get off too lightly. Only 7 percent of people said the tax system struck the right balance between rich and poor.

“Creating a fairer tax system does not mean a higher tax bill for ordinary workers,” said Brendan Barber, TUC general secretary. “Instead, clamping down on tax avoidance and closing the loopholes enjoyed by the super-rich will put extra revenue into ordinary peoples’ pockets or pay for our hard-pressed public services.”

The CBI, the employers’ organisation, responded by saying that UK businesses paid almost £150bn in taxes last year, with an additional £4bnof taxes introduced in the Budget. John Cridland, deputy director-general said, “let’s dispel the notion once and for all that business is ‘getting out of’ paying its way on tax.”

“What’s more, with businesses becoming increasingly mobile, there’s a real risk that firms will simply vote with their feet if they see the UK becoming any less competitive – costing more jobs and hurting the economy at a time when it doesn’t need it.

“As a nation, we can choose whether or not we welcome high earners who generate wealth, make investments and create jobs. In a global economy, they too can vote with their feet.”

Often hotly debated amongst economists, is the question of how far the burden of corporation tax is ultimately passed on to investors.

The CBI cited research by Michael Devereux of the Oxford University Centre for Business Taxation which suggested that 92 percent of any increase in corporation tax is passed on to workers with a lower income, and hits the economy through less investment and reduced productivity.

The government may unpick another aspect of the budget by reversing proposed new duties on motorists and hauliers already hit by rising fuel prices after Gordon Browns ministers yesterday paved the way for a new tax retreat.

While hundreds of lorry drivers blockaded streets in London, ministers signalled that Chancellor Alistair Darling would take pity on road users when he draws up his pre-budget report in the autumn.

Members of Mr Darling’s team said he was “listening carefully” to Labour MPs and others on whether to press on with plans to increase fuel duties by 2p a litre in the autumn and for a controversial reform to vehicle excise duty.

Having already been forced to water down his plans to reform capital gains tax, the chancellor held an emergency £2.7bn mini-budget, this month, to compensate losers from the abolition of the 10p tax band.

However, as fuel prices soar and household budgets tighten, Mr Darling’s aides insist he is “very aware” of concerns raised by Labour MPs and motoring organisations. The chancellor’s team realise that any retreat on the road tax plans in particular would be seen as another humbling U-turn.

But one of Mr Darling’s allies said: “If it’s the right thing to do, he will do it.”

According to Grant Thorton, the accountants, if oil prices stay at their current highs due to North Sea oil revenues, the Treasury could fund the scrapping of the proposed 2p increase in fuel duty and its new tax on larger cars, and still beat the relevant revenue forecasts over this financial year by more than £4bn.

A commons motion calling for rethink on the road tax plan has been signed by 35 Labour MPs. The plan - under which larger family cars, including models bought since 2001, would see a sharp rise in vehicle excise duty. Labour MPs have claimed that the plan to increase taxation for older family cars would hit poorer families and undermine the government’s claim to be on the side of hard-working households in difficult times.

Insiders at Downing Street say a retreat on the VED plan was not under “active consideration” but pointedly refused to say whether it would survive in the chancellor’s autumn pre-budget report. Under the plan, cars with higher emission levels would be charged a higher level of road tax.

Justice Secretary, Jack Straw said in an interview, “The chancellor and prime minister have said quite explicitly we are listening to public concerns about this and – if there are going to be decisions announced – they could be announced in the autumn.”

John Hutton, business secretary said, “The chancellor is listening to what people are saying about VED, as he has done on a number of occasions recently about tax rises.”

Labour MPs are now expected to scrap completely, the proposed 2p fuel duty rise, which was proposed by Mr Darling by six months until the autumn.

Across Europe, the impact of rising fuel prices is a growing problem. Yesterday, French president Nicolas Sarkozy, suggested a cap on sales taxes on fuel to try to hold prices down.

British taxpayers look set to suffer from the £10bn of writedowns, as a result of global credit turmoil, unveiled in recent weeks by Royal Bank of Scotland, Lloyds TSB and HBOS.

The banks will knock more than £2.5bn off their combined tax bills and, though some losses will be booked outside the UK, the majority is expected to come at the expense of the British taxpayers.

The figure, which represents more than 5 per cent of the Treasury’s forecast for corporation tax receipts in the 2007-08 fiscal year, underscores the dependence of the public finances on the banking industry, which has accounted for a growing proportion of the tax base in recent years.

In 2005-06, the banking, insurance and finance sectors paid £11.6bn of corporation tax, around a quarter of the total.

In the US, the credit turmoil has shown a 13.6 per cent drop in corporate tax receipts totaling $173bn since the start of the fiscal year in October, according to the Congressional Budget office. Receipts amounted to $201bn during the same period last year.

That being said, the $28bn shortfall could be drowned out by the impact of the $150bn fiscal stimulus package designed to prop up the economy later this year. The stimulus is the main reason for projections that the US budget deficit is likely to double to $400bn this year.

A true indication of the damage suffered by UK banks from the market turmoil will be highlighted this week when HSBC and Barclays, the country’s largest and third-largest banks, respectively, announce their first quarter results. Analysts expect Barclays to announce writedowns of £1.4bn before tax.

Public finances will be affected in a number of other ways. Job losses and lower bonuses in the city of London may lead to lower income tax receipts, while fewer housing deals and lower house prices could undermine the amount raised by stamp duty.

The impact of the banks’ losses is particularly significant because all witedowns, even if the losses do not affect banks’ reported profits, have an effect on banks tax bills.

The treasury has said it had taken account for possible losses from the global credit turmoil in last autumn’s pre-Budget report. It did not adjust the forecasts, which predict corporation tax receipts of £47bn for the 2007-08 tax year.

The Daily Telegraph has launched a campaign today called Fair Deal for Drivers. This has come about after statistics showed the average motorist is paying more than £600 a year extra in tax under Labour. The organization is backed by Mp’s, charities and motoring groups all of whom are urging the Prime Minister to give cars users a better deal.

It is expected that the treasury will receive at least £48 billion in car related taxes this year.
With this growing evidence that drivers are being unfairly targeted by the Treasury, Gordon Brown is under pressure to reconsider a series of controversial tax rises.

The AA have compiled figures that show the average motorist has to pay out more than £1800 annually in fuel duty, car tax, VAT on petrol and other levies – all of which are an increase of more than 50 percent in just over a decade.

This years budget includes tax rises that take effect next year and could double the cost of vehicle excise duty for popular ‘school-run’ saloons to more than £400. This will also apply to cars bought over the last seven years.

The PM is also under pressure to scrap the 2p increase in fuel duty, which has already been pushed back until the autumn. The treasury receives 64p from every £1 of fuel purchased.

There are around 27 million motorists in the UK with each driver paying an average of £1,811 to the Exchequer every year – an increase of £652 over the past decade.

AA president Edmund King, said: “This campaign is needed because it appears the car is seen and taxed as a luxury rather than a necessity. Motorists are now taxed at a higher rate than champagne drinkers but for the vast majority of people driving is an absolute necessity.

“The high taxes are now affecting people’s lives and families are having to cut back on other areas of spending to pay for their cars. What is really hitting people are these plans for retrospective taxes.

“The Prime Minister should now be listening to these concerns.”

The new director of the RAC Foundation, added: “There is no logic behind the fact that the Government now spends far less on roads than it collects in motoring taxes.

“In the 1970s they were in balance, but tax revenues have grown in line with road use, while spend on provision has fallen.

“Road users must expect to pay for such environmental and other damages as they cause to others: and they do. But this does not account for the imbalance.

“It is not reasonable that roads have become treated as a ready source of funds for all the Government’s activities.”

Critics have also noted that while the revenue from the Treasury is almost £50 billion, the total spending on roads is less than £8 billion.

In addition, suspicions of pay-as-you-drive road tolls are also present after Chancellor Alistair Darling earmarked money for trials of the technology needed for a nationwide scheme on motorways and key routes.

The tax rises are just another blow to motorists as petrol prices rise above £1.10 a litre for unleaded – near £5 a gallon.

The government has tried to justify the tax rises by claiming that they will encourage more Eco-friendly behavior. However, official projections forecast that carbon dioxide emissions from motoring will drop less than one percent over the next few years.

If you have ever checked out the UK tax code system you will know that it is not the simplest of systems to figure out!

Research has shown that not only are many people actually having tax deducted from their income under the wrong tax code, but more and more people are not claiming for benefits which they are entitled to. We are not talking just a few hundred pounds, we are literally talking about billions of pounds of money which goes unclaimed each year – money which has actually been set aside.

Why are some employees under the wrong tax code?

While it would be easy to blame the government for the system and the way changes are recorded, this would not be the whole story. The truth is that more and more people in the UK seem to ignore their own tax situation, the allowances they may be able to claim and ultimately they are giving away money which they are entitled to retain. Tax rates in the UK seem to change on a regular basis (more so as we approach a General Election) but that is really no excuse.

A simple phone call to the tax office will help you to confirm which code you should be on, which code you are on and any money which is due to you for overpayment. Alternatively, although highly unlikely, some people may actually be asked to pay extra tax if they have been on a lower code than they should have been on.

How are people missing out on benefits to which they are entitled?

The UK benefit systems must be one of the more complicated in the world with the authorities often forcing you to “jump through hoops” to get what you are entitled to. This seems to be the main problem, with more and more people just giving up after the tenth form to fill in!

However, one area of society who seem a little more reluctant than most to claim their benefits is the elderly. Many of the older population of today grew up looking after themselves and benefits are something which some of them feel a little embarrassed claiming for. They should not feel this way!

As each change in the tax and benefits system filters through we seem to hear about new and more complicated tax frauds and benefit cheats appearing from nowhere. These are the people who claim for more than they are entitled, while some of the needier of society claim for nothing.

It seems that each new government which comes into power promise the same thing, simplify the tax laws and make benefits easier to claim. However, very few over the last 50 years have actually delivered on their promises, with many now sceptical of how the system is run. Working tax credit has become a shambles, people are being forced to pay back thousands because of incorrect payments and the people who need assistance are often being left out of the loop.

Will we ever find a simple tax and benefits system?

Oh how David Cameron must have loved Prime Ministers Question Time today with news breaking that Gordon Brown had caved into a possible Labour Party revolt and agreed to compensate those hit hardest by the abolishment of the 10p tax rate. So what does it mean for you?

While the 10p tax band had only been around for a short while, Gordon Brown introduced plans to axe it last year in his last budget speech. The band basically meant that those on the lowest pay were the main gainers with a portion of their income taxed at only 10p in the pound. It had been well received by traditional Labour voters and seemed to be a vote winner for the government, although quite why Gordon Brown decided to axe it is a mystery.

The Government have now promised a full review of ways in which those who lost out can be compensated, with many suggesting increased winter fuel allowances for the elderly and those without children being introduced to the tax credit system. Quite why the government don’t just reinstate the 10p tax rate is a little strange, because all of the methods which have been mentioned as possible ways to compensate people will actually be expensive to run themselves!

It will be interesting to see how the rebel Labour MPs and the opposition react in the immediate future because we had a situation where a government budget could (and was probably about to be) blocked in Parliament. This would have caused something of a constitutional crisis and seen Gordon Brown’s credibility fall even further. By “caving in” to the rebels he has definitely chosen the lesser of two evils – but for how long will he keep the Premiership?

At this moment in time the UK financial system is like a rudderless ship with short sharp corrections attempted when someone decides to take the wheel. For many months now, voters have been hit with rising taxes, rising fuel cost and a general rise in the cost of living, all at a time when income is under pressure and money is tight. If an election were called now there is every chance that the Tories would gain a majority in the Houses of Parliament, but even a delay until 2010 at the latest may not be enough to save Gordon Brown.

He waited years to take the role of PM and then just as he gets comfortable in his seat it all starts to go very wrong. In the eyes of many voters, and Labour MPs, he is now damaged goods and highly likely to see a leadership challenge at some point over the next 12 months (possibly after the May local elections). More surprising than anything has been his dithering with regards to the UK economy and the tax regime of the current government. Time and time again the former “Iron Chancellor” has performed massive U-Turns with even his most loyal supports at a loss to explain what has gone wrong.

Control of the UK economy evaded Gordon Brown some time ago and he is now losing control of his party.

While those with children will always want to do the best by their family, it is essential that you do not leave your planning too late.  You need to ensure that you are making use of the most tax efficient forms of investment and saving as soon as possible.  Why? Simple, you do not know what will happen tomorrow………

As much as nobody likes to consider the worst, we do not know what may happen tomorrow, and more importantly how this will effect the children and family we may leave behind.  It is the lack of planning, and a fear of the unexpected, that sees thousands of people give back millions of pounds to the tax man each year, which they could have retained in their family.

From an early age, where money is available and assets need protecting, it is vital that you make full use of any possible protections and tax efficient vehicles that you can.  Whether you look to put your assets into trust, use up your children’s ISA allowances each year, or even start contributing to their “pension” pot from an early age, you need to act as soon as possible.

All of the advice that you will ever require is available on the internet, or from an IFA, as each and every person will have slightly different requirements and a slightly different situation to consider.  Do not fall into the trap of considering how to protect your assets when it is too late, as there are rules and legislation to counter-act blatant “tax avoidance”, but long term planning will always be a major part of the financial industry.

Do not leave it until the last minute, act now and ensure that your finances are able to with stand any shocks or surprises in the future.

Have you ever stopped to think about what actually happens to the money which you earn and put into the bank? Does it hold its value? How are you taxed? Is it really keeping pace with inflation?

While the majority of us just place what little we have left over into the bank and see interest accruing, do you really follow the path from earnings to savings? If you take a step back and consider the events in question you may be surprised just how much you are losing before you even start to spend!

The tax situation in this country is depressing in some instances, when you consider that from your initial remuneration you will pay the following :-

• National Insurance
• Income Tax
• Pension Contributions (tax free)

The when you place your money into a bank account you will pay :-

• Tax on your interest 
• Possible monthly bank fees.

Many people believe that there is a large element of double taxation in here, when you consider that you have already paid tax on your remuneration, and then you are charged tax on the interest that you earn.  While currently there are some attractive interest rates available, you are not really benefiting by the amount you may think.  When you take into account inflation and the cost of living, there are actually situations when you income will be falling in relative terms.

So how can you rectify the situation?

There are a number of factors to consider, including :-

• Making full use of tax free vehicles, such as ISAs.
• Placing your money in a high interest account.
• Checking that you are paying the correct rate of tax.

When you actually sit back and consider the amount of money which is taken from you before you even touch your money it is frightening, and what do you get in return?

While the government have long been on the trail of the mega rich Private Equity companies , the companies which are seen by many as asset strippers, will the recent capital gains tax changes have the desired effect? 

Prior to the recent budget, Private Equity investors were able to reduce their tax burden down to a minimum of 10% by holding their investments for a certain length of time.  This was supposed to be their reward for investing into companies which may have been in financial trouble, or required additional investment.  Then the authorities turned against them!

The government recently pushed through an across the board change to capital gains tax rules which set a flat rate of 18%, rather than the current 0% to 40% formulae, which depended upon what you bought, how you bought it and how long you kept it.  So now the 10% rate for the Private Equity companies has gone, but so have a raft of incentives for the traditional worker!

For years many companies such as Tesco have used SAYE (Save As You Earn) schemes to encourage their employees to invest (tax free) into shares in the company.  Under the old government rules they were allowed to take any profits free of tax if the shares were held for a certain length of time (often 3 years).  However, in their quest to attack the rich, the authorities have inadvertently brought the normal worker into play and taken away what little tax incentives there were for investing in SAYE and other similar schemes

The changes have also effected the small business person, where under the old rules they were allowed to taper their tax relief the longer an asset was held.  Under the new rules many will see their rate of tax increase from 10% to 18%, and these are not companies or business people earning millions of pounds!

Under pressure from the opposition, the Labour government have pushed through some last minute changes to the inheritance tax laws, which were announced in yesterdays budget speech.  New laws mean that married couples and civil partnerships can now claim a combined inheritance tax allowance of some £600,000, and this figure is set to rise to £700,000 by 2010.  So what does this really mean?

While the change has grabbed the headlines, there are many who are sceptical about what it actually means in practice.  Currently all assets lef to a spouse in a will are free of inheritance tax, so there would be no savings here, however, when the second partner dies (assuming the first used none of their inheritance tax allowance) they will be able to shelter the first £600,000 of their assets from the tax man.

When you consider that the average rice of a house in the UK is currently around the £200,000 mark, there are very few people who would actually use the combined £600,000 allowance.  However, it will offer comfort to those whose partner has passed away, as they will be able to claim the combined allowance on a backdated basis.  When you consider that Gordon Brown had 10 years as Chancellor to change the inheritance tax laws, many are scathing of his reasons for doing it now, i.e. the pressure exerted by the Tory party.

What was clear in this years budget was the fact that the UK economy is slowing and the business environment will become tighter over the next few years.  Gordon Brown has until at the latest 2010 to turn around the economy and announce an election, which he hopes will probably coincide with an up turn in the economy.  After 10 years of smash and grab, there are many privately thinking it is may be pay back time for the ex-Chancellor.

Having waited 10 years to be shoe horned into the role of Prime Minister, he may well experience a very difficult tenure - one which may well turn out to be his last.