Save content
Have you found this content useful? Use the button above to save it to your profile.
Downing Street
istock_downingstreet_TonyBaggett

Budget for recovery

by

Tina Riches provides her personal ideas about what the Chancellor should say in his Spring Budget. This does not represent the views of organisations she is involved with.

18th Feb 2021
Save content
Have you found this content useful? Use the button above to save it to your profile.

"Madam Deputy Speaker - today, I present to the House a Budget for recovery;

"A Budget that shows that the British people can begin to move forward from the Covid pandemic to a brighter future;

"A Budget that starts to sand down the rough edges on our tax system and encourages everyone to pay a fair share.

"First, so that tax advisers do not have to wait any longer, I shall address some necessary tax changes.

"We are indeed living in unprecedented times. It has been necessary for the state to look after as many people as possible, given the available resources and data.

"This has led to exceptional levels of Budget deficit, which will be addressed in the OBR’s predictions.

 "We are firmly stuck on the horns of a dilemma, whether we

  • abandon levelling up; or
  • look after people, meaning the deficit grows or we seek help from those with deep pockets.  

Register for free to continue reading

It’s 100% free and provides unlimited access to the latest accounting news, advice and insight every day. As well as access to this exclusive article, you can:


Content lock down, tick icon

View all AccountingWEB content


Content lock down, tick icon

Comment on articles


Content lock down, tick icon

Watch our digital shows and more

Access content now

Already have an account?
Tags:

Replies (3)

Please login or register to join the discussion.

Donald MacKenzie
By Donald MacKenzie
19th Feb 2021 10:02

I would be happy to see the tax system simplified but the easy option of taxing all forms of income or gain the same ignores the differences in risk. An employee in a large organisation earning, say, £50k a year is not taking the risks (to future income) of a self employed person or business owner. The people taking part of their income as dividend do so both to save tax and NI but to reflect the fact that some of their income is a reward to capital (in money or effort) or because the money available varies year on year. Similarly for a self employed individual. They are not guaranteed a salary, they need to keep healthy and keep winning business.
The self employed and employee dividend takers do not qualify fully for all employee benefits; holiday pay, unemployment, redundancy etc.
In merging tax and NI would get rid of the upper limit to NI that sees the effective tax jump at £50k not be from 20% to 40% but 20% to 30% (ie 20% plus 12% NI to 40% tax and just 2% NI)

Thanks (1)
avatar
By North East Accountant
19th Feb 2021 10:50

New simple tax system from 06/04/23.

Abolish everything we have now.

Abolish Cash all income must be banked in nominated bank account.

Nominated bank account must be linked to HMRC digitally.

Personal and Company Allowance of £1K per month for Individuals and Companies.

All income or takings or rental income or business sales or whatever over £1K per month taxed at X% across the board.

X% is whatever is needed to raise the required £800BN needed to run the country.

Only adjust X% up or down as required.

HMRC collect tax due 10th of the following month by direct debit automatically from nominated account.

Anyone found not banking in the nominated account, bartering or fiddling is sent to jail for 1 year, in the first instance, 3 years for the second and 10 years for the third. No early release.

HMRC spend all time investigating and checking returns with 10% of the staff they have now.

Us Accountants will be knackered mind....

Thanks (0)
avatar
By Paul Crowley
19th Feb 2021 14:40

Wealth tax
On HMRC and civil service pension pots?

Equality
Self employed to be given employee rights reclaimable from HMRC?
OR remove employee rights?

What complete balderdash

Thanks (0)