• can I avoid contributing to the military?
• who can divert or withhold taxes?
• withholding taxes and diverting taxes
• the legal consequences of withholding or diverting
• useful addresses
Some people are directed by their conscience not to pay for war. They find that paying taxes for military purposes deeply and painfully affronts their conscience and who, in order to honour that conscience, want to withhold or re-direct that part of their taxes that fund war or preparations for war. If you are one of those people this page has information on who is able to withhold taxes, how to do so, and advice on the likely legal and financial consequences if you withhold or divert tax.
We are often asked if it is possible to avoid paying taxes for war preparations. The military budget is financed through both direct and indirect taxation. This means that everyone, regardless of whether or not they pay income tax, contributes towards the military budget from their everyday expenditure. In this sense it is almost impossible for anyone to avoid paying for the military entirely.
You can avoid paying income tax to the military by keeping your income below the level at which you have to pay tax. Although many people are in this position through no choice of their own, some people choose to do this for reasons of conscience.
Gift Aid and Give As You Earn schemes have replaced covenanting for tax-effective giving to charities whereby the charity you donate to can claim a further 28% on top of your donation if you have paid income tax equivalent to or more than 28% of your donation. So if you donate enough to charity you can get the government to contribute the military part of your taxes to your chosen charities too.
Until we achieve a change in the law there can be no watertight way of ensuring that you do not contribute to the military budget. However, some people do try to divert or withhold part or all of the taxes they are required to pay to the Inland Revenue.
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Some people have tried diverting part of their income tax to government departments other than the Ministry of Defence. Others have withheld part or all of their income tax or, in the case of businesses, corporation tax. From a legal point of view, any attempt to withhold or divert taxes on the grounds of conscience is illegal. Such action can lead to the courts, fines, seizure of money held in bank accounts, bankruptcy and prison.
Because of the taxation system the number of people in a position to divert or withhold part of their taxes is limited. Most tax is deducted at source and so there is no way of withholding it. Income tax deducted under PAYE is deducted at source so it usually only the self-employed or people with another source of income not taxed at source.
Most employed people pay tax under Pay As You Earn (PAYE). People on PAYE are not able to divert or withhold their income tax because their employer is legally responsible for deducting from payments of wages or salaries and paying the income tax directly to the Inland Revenue. If your employer were to agree to withhold or divert part of your income tax they would be still be liable in law to make payment and it would then be they who would be taken to court and not you!
Even if you cannot withhold or divert the military part of your tax you can make your objection known by asking your employer and MP to forward your objection to Inland Revenue and ask them to help you resolve your dilemma: to obey your conscience or the law.
Most pensioners have their tax deducted at source and so many are not required to complete a tax return. Similarly students and unwaged people generally do not have to complete a tax return. This means that most people in these groups are not in a position to divert or withhold tax. However, if you have any private source of income (e.g. income from residential lettings, shares, unit trusts or a private pension) then you may be responsible for paying the tax on this. If so, you can directly withhold or divert the tax due.
Self-employed people are legally responsible for payment of their own taxes, unlike those taxed under PAYE. If you are self-employed you can, if you wish, divert or withhold income tax. If you have any income which is not taxed at source you can, if you wish, divert or withhold the tax payable. See withholding and diverting tax and the legal consequences of withholding or diverting for further information.
If you are both in employment paid under PAYE and also receive income from a source other than your employment the Inland Revenue is increasingly using a facility to amend the PAYE code number and treating the two together. You can avoid this, and take personal responsibility for paying your tax due by writing to the Inland Revenue and insisting that the PAYE code should not be amended.
As an employer you are in the position to divert or withhold taxes on behalf of yourself and on behalf of your employees. Whether the Inland Revenue, in trying to obtain any withheld tax, acts against you individually, your treasurer or your organisation, will depend on the legal status of that organisation.
First of all, check with a solicitor. If you are an employer in a Limited Company, then your company rather than you will be legally liable for any attempt to withhold or divert tax. If your body is an 'unincorporated association' (i.e. a grouping that has no independent legal status - is not a registered charity, a Limited Company or a registered Friendly Society) then the Inland Revenue may hold your treasurer and/or other named individuals from your management committee personally liable for any withheld tax.
The situation will depend on the nature of the co-op. If it is informal then it is likely that it would be treated as a partnership by the authorities and all co-op members will be equally liable for any taxes withheld. If registered as a Friendly Society, it is likely that it would be treated as a limited company by the authorities.
If you are unable to withhold or divert tax do not let that stop you lobbying your MP, MEP, the Chancellor of the Exchequer or the Prime Minister. You could also try to spread the message by seeking support from local peace and human rights groups or by seeking support from any religious group, political party or trade union of which you may be a member.
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Always inform the Inland Revenue of what you are doing and why. This can help to maintain a more pleasant atmosphere and makes it clear to them that even though what you are doing is illegal you are not setting out to deliberately cheat or lie to them.
If you are responsible for completing a Tax Return and fail to do so, or return it late, you will be subject to an immediate fine. Any tax unpaid by the due date will also incur substantial interest charges. It is advisable to complete and return your Tax Return by the deadlines set by Inland Revenue even if you decide to withhold or divert some of your tax..
It is not advisable to withhold National Insurance payments as this can severely affect your benefit rights, including pension entitlement.
If your conscience directs you not to pay for war one option open to you is to withhold part of your tax until the Inland Revenue assures you that your taxes will not be used for military purposes. People who choose this course of action usually write to the Inland Revenue informing them that the tax has been deposited in a separate account and will be paid (with interest) when the proper assurance has been given.
If you take this action there will be financial consequences and sooner or later the Inland Revenue will demand that you pay up or face legal action. You should read our section below on the legal consequences of withholding tax and consider seeking professional legal advice.
Some people try to earmark cheques sent to the Inland Revenue so that the money does not go to the military. Such cheques are generally either returned or 'mistakenly' paid into the Inland Revenue account. As the Inland Revenue will normally respond to a diverted cheque by asking you to make the cheque out correctly you have the option to pay and thus avoid legal proceedings whilst still making your point.
The process of diversion is as follows: if you receive a tax demand for £100 and wish to try to divert that part of it which would go to the Ministry of Defence, it would be necessary to write out two cheques. The first cheque would be made out to the Inland Revenue and the second to the government department that you wish to divert to (both the Department of Health and the Department for International Development have proved popular in the past or you could try the Global Conflict Prevention Pool). As about 10% of our taxes go to the Ministry of Defence 10% of the £100 would be sent to your chosen Department and the remaining 90% would be sent to the Inland Revenue.
Some people choose to divert more than the Ministry of Defence percentage. This is to allow for the proportion of the taxes paid on their ordinary expenditure (VAT etc.) and weapons-related expenditure which does not go through the MoD, such as the Defence Export Services Organisation (DESO), Export Credit Guarantees on arms sales and nuclear and other weapons-related research.
Make the cheque payable to 'Inland Revenue Department for International Development Account' (or another department). If you have old-style cheques that are not crossed 'A/C payee only' then you must delete the 'or order' and sign the deletion, then you must add 'only' after 'Account Payee'.
The Inland Revenue may decide that it will not accept such a cheque. If so, your cheque will be returned and you will be asked to write out another payable to the Inland Revenue. You may then decide to comply with this or continue to send diverted cheques. Sometimes the Inland Revenue will accept a number of diverted cheques and then refuse one, on other occasions they will not accept any such cheques and begin legal action.
If one of your diverted cheques is accepted and banked then ask your bank to confirm that the cheque has been paid in accordance with the Cheques Act 1992, which requires that the cheque be paid into an account of the payee. If this is not the case then the value of the cheque should be re-credited to your bank account.
It is the responsibility of the Parliamentary Ombudsman to ensure that government departments carry out their duties within the law. If your cheque was not made payable to the Inland Revenue Account and yet was paid into it then the Inland Revenue may be guilty of maladministration.
You can only deal with the Ombudsman via an MP. This does not have to be your local MP but it is parliamentary etiquette to try them first. If your local MP proves unsympathetic you can then approach an MP who is sympathetic to conscience.
As yet, no one has received a satisfactory reply from the Ombudsman. However, it is a course worth following as it adds to the pressure to have our conscientious objection recognised by Parliament.
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If you continue to withhold taxes you will probably be taken to court by Inland Revenue. You can always pay at any stage having taken the matter as far as you feel able. If you feel publicity would be useful invite the press to attend even if it means asking the bailiffs to call a little later. Bailiffs are usually, though not always, prepared to make an appointment. Place the money in a prominent position and tell the bailiffs where it is. You can politely refuse to willingly hand it over but make it clear that you will offer no resistance to prevent them taking it. They will then be able to take the money - this often makes a good photograph!
A court is likely to make a judgement against you if you continue to withhold tax after demands from Inland Revenue. Generally the only permissible evidence in court, unless you contest the amount owed, is a statement from the Inland Revenue saying that you owe the tax. You may be able to make a statement outlining the reasons for your action in court.
Cases where a small amount (usually up to £2000, but this may vary) of tax is unpaid will be heard in the Magistrates Court, and those of a greater value in the County Court. Cases which are to be heard in the County Court will normally start with pre-trial review held in the Registrar's office. This is a private hearing with only those involved in the case allowed to attend. Friends and supporters may wait outside but are not allowed into the hearing. The Inland Revenue will apply for your defence to be struck out and for 'summary judgement' i.e. that you be judged there and then. Usually, provided the Inland Revenue applies for summary judgement before the hearing and give you notice that they are doing so, the application will succeed and you will be found guilty and ordered to pay the amount in question.
You can appeal against having your defence struck out and so take the case further. There have been occasions when the Inland Revenue has failed to apply properly for summary judgement, again allowing the case to proceed further. So far no case has been won. If you are going to court and would like to put up a 'legal' defence rather than a 'moral' defence we strongly recommend you seek professional legal advice.
...a number of things can happen. Your goods can be distrained upon with or without a court order i.e. with or without a court case. Distraint is a legal procedure that prevents you from disposing of goods that bailiffs, on behalf of the Inland Revenue, have claimed in payment of tax. The type of goods that the collectors are likely to seize includes cars, TVs, valuable electrical items and antiques. The goods have to belong solely to the person who owes the tax. Joint property, paid for from a joint account, cannot be seized, nor can goods that belong to anybody other that the taxpayer.
The usual result of refusing to pay is for Inland Revenue to take you to court for non-payment of tax. If you continue to refuse to pay after an order for payment has been made by the court, Inland Revenue will apply to the court for a 'warrant of execution'. The court will appoint a bailiff who will usually visit unannounced and ask you to pay the judgement, costs and fee for the distraint warrant. If the costs are not paid then the bailiff has the power to seize and sell your goods at public auction. Bailiffs have no power to break into premises if you refuse access, although they can enter through any open door or window or seize goods left in an unlocked shed or garage.
If you refuse to pay the amount outstanding requested by the Inland Revenue they can distrain upon your goods without going to court. However they can only do this once. If they decide to distrain without a court order they must first demand the payment of the outstanding taxes. This is usually followed by a personal call by a tax officer. If you still refuse to pay, the tax collector can 'seize' goods to cover the debt and related costs. If you refuse access to your house the collector can obtain a warrant to break in and seize goods.
If the distraint is under a court order you are allowed to keep clothes, bedding and the tools of your trade up to a value of £250. Bailiffs usually take goods valued up to three times the amount of tax owed. This is a precaution against the goods sold not reaching the expected market value at auction. Any excess sale proceeds will be returned to you. Remember that the costs of the Inland Revenue, bailiffs and auctioneers can be high, so the accumulated costs owed may be higher than the tax owed.
Seized goods must be held for five days at the defaulting taxpayer's expense before they are auctioned. If the amount due including interest still has not been paid the collector can sell the goods at public auction with any surplus being returned to the defaulter. If you are prepared to have goods sold at public auction make sure that you inform the bailiffs of which articles are yours and yours alone and suitable for paying your debt to the Inland Revenue.
The Inland Revenue can distrain upon property where this is held by a third person i.e. money held in a bank account or building society account. You will not be warned beforehand if this is being done. The Inland Revenue cannot take money from an account that is overdrawn, nor can they garnishee a joint account unless both signatories are responsible for the tax due. The Inland Revenue can only garnishee an account if they know the branch sort code and account number. Again this is a course of action commonly used by the Inland Revenue.
If you are an employee, the Inland Revenue can apply to the court to make your employer deduct part of your income and pay it to them each week until the debt is paid in full. As most military tax resisters are self-employed or pensioners this is not usually an option open to the Inland Revenue although they have on a number of occasions made an Attachment of Earnings Order against an occupational pension.
The Inland Revenue can apply to the court to declare you bankrupt but this is unusual unless the amount involved is substantial. Only three people have so far been declared bankrupt.
This is very unusual. So far only four war tax resisters have ever been sent to prison. In each case the person was imprisoned for refusing to pay withheld tax when ordered to do so by a judge.
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Your MP
House of Commons, London SW1A 0AA
Tel. 020 7219 3000 (parliament switchboard) and ask to speak to your MP.
Inland Revenue Policy Division
Somerset House, London WC2R 1LB
Tel. 020 7438 6590
Parliamentary Commissioner for Administration
(the Ombudsman)
Church House, Great Smith Square, London SW1P 3BW
Tel 020 7212 7676
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