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Child benefit tensions
I'm sure some have clients who although they "co-habit" are still fiercely independent of their partners. Mr High earner needs to complete his tax return and lives with Ms Not so high earner who has a number of children from a previous relationship, and her own income. How does he persuade her to tell him how much child benefit she receives if she is unwilling, and indeed why should she tell him anything. At present, if they don't claim tax credits, how would HMRC know they are co-habiting anyway?
Would he have a defence for not complying? Do human rights come into this? So I have to pay more tax because of the child benefit on some-one elses children.
Is this another example of things not being thought through properly by people who don't live in the real world?
talk "medium term/deficit reduction financial strategy"
gone are the days when the chancellor had rabbits to pull out of his hat; now with all his "special advisers/spin doctor" leaks and then a dream that delivers in 12 months time but wacks duty on smokers, drinkers and motorists straight away......
press comment will be outdated within a week and forgotten about by next april and then with his "OTS" hat on he tries to align corporate savings and personal income tax rates (and vat!) at 20%!!!!!!
soon we will have the GAAR a huge amount of anti avoidance and only one rate of tax to avoid. lets hope the 15% Stamp duty grab on the overseas/landregistry property transfer records are properly investigated by the heavily staffed "compliance side" of HMRC(which he promises to resource) yield more than the 100m he reckons he will get from the 50% tax band(bearing in mind the amount of avoidance going on with this which has lead to "forestalling"
oh yes and we dont need to fight over the european financial transaction tax if the chancellor already has his own bank levy anyway!
he might have quoted adam smith
but this budget was pure gordon. This is a government that talks a big red tape reduction game, but fails to deliver. Loads of fiscal drag and a pensions raid. Dejavue anyone.
Well at least GO has not depended upon pure luck
to get the finances right - I believe all of those indiviudals and businesses queuing up to exit the UK due to the high personal tax rate have turned around....and indeed I hear some are currently disincorporating as we speak in order to pay more tax over. Those who paid into pensions or deferred dividends are also foaming at the mouth, I believe with the prospect of distributing all of their income in order to pay 45% is irrisistable. And others have decided to pay salary instead of dividends to ensure maximum taxes are paid. As for those wealth creating employees (such as bankers) - I understand that they will take cash bonuses instead of shares, such is the good deal they are getting. So all in all there will be more jobs and more money spent within the uk as well as more taxes collected.
Of course we are all in it together.....I never thought otherwise?!
gordon's luck?
not luck, more a case of riding on the property bubble he created. I guess like all free-loaders, he did not get off in time.
strangely the thing george has done differently is that he has not sold any gold. Gordon sold it at the bottom of the market - George did not at the top of the market. Anyone able to spot a common theme here?
Fairer Higher Rate
Whilst it is right that there should be a higher rate of tax for those earning significantly higher, the 50% rate was to me too high.
45% seems more equitable and raises a little extra for the treasury whilst allowing the individual to retain more than they pay in tax.
still don't get it
....why would people want to voluntarily pay more tax just because the tax rate has gone down????? - no logic at all, the maths just don't make sense....
Which I hasten to add is a different argument from what level we feel is 'fair'....
The government is doing all they can for the "poor" people. Now that they've said the poor don't have to pay tax like the rest of society, what more do they want? They want the government to give them money? They want the government to employ them? Give them houses? That's not the role of a government. In a capitalist society, you sell your skills and abilities to the highest bidder, who pays you money based on your skills and qualifications. So the 62.5% band still exists, and even tougher for people who get under it on their pay day, who loose their personal allowance because of the complexity of the system. The government is not santa claus, and the UK is broke.