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Brilliant
but like so many other outstanding commonsensicle ideas it will be brushed aside.
Still Waiting
It would appear they have far more important things to discuss, like MP's salary increases, MP's expenses (again) House of Lords expenses (again), how to claim £300 attendance allowance for 5 minutes work (or less) - the really important things that concern MP's and Lords - rather than the more mundane work of running the country, understanding how businesses work or don't work; how businesses can be persuaded to pay for yet more red tape such as auto-enrollment of pensions, vetting foreign workers by becoming a subsiduary of the Border Agency; continuing to act as unpaid tax collectors in VAT, PAYE, CIS, NICs. Can't wait for May 2015.
Be careful what you wish for ..........
amalgamation of the 2 supposes higher tax rates for pensioners with the introduction of this "new" NI supplement.
What about pensioners?
If tax and NICs are combined, I have serious concerns about the effect on pensioners, and this cannot simply be resolved by "some slight tweaking of the tax threshold or the state pension". Most pensioners rely not just on the state pension, but also on private pensions, rental income, savings income etc. If the tax rate on this income goes up from 20 to about 30 percent, in order to include NI, this will have a devastating effect on many pensioners, who are already struggling to make end meet with falling returns on investments and low annuity rates. And I would not have any confidence in an increased personal allowance or state pension lasting very long. Look what is happening the age allowance now. If it were reintroduced to compensate pensioners for paying increased tax (to include NI), it would only be a matter of time before some future government decided that the age allowance ought to be abolished and personal allowances should be the same for everyone.
Excellent for taxing pensioners more
We could have another 50 rates of tax to make sure it's all fair. self assessed so no cost to the government. Or at least you can't see it anymore!
next job
I'm bored with that now.
be careful what you wish for (2)
not forgetting that pension income may very well be taxed at a much higher rate than the tax relief originally obtained delivering a breach of the trust implied - because there would be few that would have saved with a 20% bonus on the way in had they known they were to be smacked with a 30% charge on the way out.
macaulay147 why?
It would be much better to expect wealthier pensioners to make an NIC contribution. Particularly as the pensions for the next generation will be poorer because of the larger pensions paid to pensioners now.
Merging National Insurance and Income Taxes
Self employed are five million persons. Employed are 25 million persons. Autumn Statement should at least bring in three new rates of income tax: 5%, 10% and 30% in addition to the current 20% and 40% to make the entire direct tax system fairer between different levels of income.
Personal Allowance should be abolished to discourage benefit fraud and/or tax evasion. The tax bands could be £10,000, £20,000, £30,000, £40,000 and £50,000. This would catch 95% of all earners and spread the tax burden more equitably within these tax bands.
There would be a continuous long term history of ALL earners and ALL benefit claimants.
or they could
Or they could just leave things as they are instead of making life more complicated.
The thing about rules is that people have to understand them and that takes time for them to learn.
Constant change is not good for anyone but psychopaths.
Anyway it will have to be good to avoid UKIP's lower tax and sensible rules manifesto
Vote UKIP for common sense.
Bite the Bullet
Or, they could raise the retirement age to say, 75, exempt all pensionable income from tax and have a flat rate of tax set at say 32%!
Surely in this day and age, someone is capable of drawing up computer models for some radically different scenarios to see what the fiscal outcome of various proposed tax regimes may be?
Merge nic and income tax?
Surely that opens the door to further abuse of the NHS. I personally prefer to clearly identify that we currently pay a very expensive health insurance based on a percentage of gross pay. Otherwise the FREE AT THE POINT OF DELIVERY brigade will have won the political arguement.
It would seem
a good idea that when they devolve tax to the Scots they sort our tax out as well.
“freelancer limited company”
Sounds great, just what HMRC wanted a voluntary classification for freelance professionals, a great way to snare those HMRC have been trying to identify for years.