Budget for recovery
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.
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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)
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....
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