The forthcoming budget

michaels

singhini wrote: »

There going to scrap child benefit in the forthcoming budget and also there bringing back military service for over 16's.
Also to beat inflation there going to add a nought to the value of everying.
finally they are scrapping the £11,500 personal allowance as its not fair on people who are on benefits as they will never be able to use it fully and replacing it with a citizens income of being allowed to earn £11,499 before paying income tax on any amount above this figure thus being more fair


exciting times
:iloveyou: :santa2: :xmastree:
the icing on the cake is the 30th of Feb exemption (and money earnt on the 30th of Feb can be earnt tax free).

It is better than that, unless the year is divisible by 4 you will also get the 29th Feb tax free

Thrugelmir

michaels wrote: »

I know someone on 60k with 3 kids who when the child benefit of 2.4k was going to be removed salary sacrificed 10k to his pension each year. Instead of saving the revenue 2400 each year for the next 10 it has cost them 10,000 times 40% tax, 2% NI and 13.8% employers NI - total cost of trying to collect more tax is £5580 per annum.

If as that perspn hopes the pension fund grows in value. Then the UK Treasury will one day benefit handsomely. Eventually tax gets paid in some form or another on every £ spent.

michaels

Thrugelmir wrote: »

If as that perspn hopes the pension fund grows in value. Then the UK Treasury will one day benefit handsomely. Eventually tax gets paid in some form or another on every £ spent.

Hmm - not at more than 20% I suspect and also 25% tax free lump sum too. Plus many years down the line.

Private_Church

mrginge wrote: »

And you seem to think that tax planning is limited to big business and the rich, which is another load of cobblers.
For example, one of the most widespread methods of reducing tax for the self employed is to use a limited company and replace salary with dividends. Not rocket science at all and certainly not a move restricted to those in the top 1%. Why aren’t you complaining about all the extra tax these people aren’t paying? Is it because those people aren’t rich?

I couldn't agree more and would also add the massive issue within the small business sector of companies employing people all year round on a self employed basis , avoiding employers National Insurance and holiday pay etc.. As a small business owner I think this sector of our economy behaves in a disgraceful way .

In the vast majority of cases these "self employed" workers are not self employed ,show no business risk because they are paid on a day rate, don't set their own working hours ,supply their own tools/equipment or supply materials.

Its about time a British Govt grew a pair and addressed the problem.

westernpromise

ruperts wrote: »

The moral question is why should those who can afford the most pay less tax as a proportion to their overall earning and spending than those who can barely afford a bag of bananas.

Repeating endlessly something you've made up doesn't make it true.

You hate and envy people who have done better than you. I think we all get that. The point is that loathing of people you envy is not a basis for determining tax levels, and carries an exceedingly high risk that you reduce what the state collects. That could mean you starting to pay some tax. Imagine what that would feel like.

Moby

https://www.theguardian.com/business/2017/oct/11/imf-higher-taxes-rich-inequality-jeremy-corbyn-labour-donald-trump

Higher income tax rates for the rich would help reduce inequality without having an adverse impact on growth, the International Monetary Fund has said.

In an analysis certain to be seized on by Labour as backing for its tax strategy, the IMF used its influential half-yearly fiscal monitor to attack the rationale for the reductions in tax for the highest earners in recent decades.

michaels

There was the bit in the quoted report about the average top rate of tax in the g20 being 35% compared to at least 47% in the uk (or more when you consider the removal of the personal allowance and employers ni).

For the mega rich who already work for the prestige rather than the money I guess this makes no odds but for the moderately wealthy anecdotally there seems to be an incentive to only work 4 days per week etc as the extra income is not worth the extra effort - great for those who choose a better work/life balance, not so good for tax revenues and thus redistribution.

GreatApe

Everyone to pay a flat 45% income on all their earnings

Government to introduce a new in work benefit of
45% of your earnings up to £11,500
25% of your earnings between £11,500 and £45,000
5% of your earnings between £45,000 and £150,000

That way they can claim everyone pays the same flat 45% tax but the government helps those who are poorer because the government is good like that. The 5% credit between £45k-£150k would probably be scrapped not long after.

mrginge

GreatApe wrote: »

Everyone to pay a flat 45% income on all their earnings

Government to introduce a new in work benefit of
45% of your earnings up to £11,500
25% of your earnings between £11,500 and £45,000
5% of your earnings between £45,000 and £150,000

That way they can claim everyone pays the same flat 45% tax but the government helps those who are poorer because the government is good like that. The 5% credit between £45k-£150k would probably be scrapped not long after.

That sounds like an absolute delight to have to administer. I thought we wanted govt to be streamlined and efficient rather than pointlessly beaurocratic

Malthusian

Thrugelmir wrote: »

Change takes time and can only be incremental.

Tell that to the East Germans. Change is only incremental up until the point people get sick of nothing actually happening, at which point change actually happens, all at once.

On a Monday people will go to bed believing universal basic income is impossible, on a Tuesday they will wake up believing it is inevitable, on the next 6 April people will receive their first payment, and on 7 April people will be unable to imagine that it was ever any different.