20:20 tax plan
Discussion
Anyone else seen the advert in the papers over the weekend? It was basically an "open-letter" from Anthony Jacobs (a Lib Dem Lord) and Richard Teather (renowned european tax specialist) to George Osbourne about reforming tax...
In principle it sounds good, however I wonder if anything will come of it.....
In principle it sounds good, however I wonder if anything will come of it.....
jesusbuiltmycar said:
Anyone else seen the advert in the papers over the weekend? It was basically an "open-letter" from Anthony Jacobs (a Lib Dem Lord) and Richard Teather (renowned european tax specialist) to George Osbourne about reforming tax...
In principle it sounds good, however I wonder if anything will come of it.....
Even if it was viable, we'll not see it. More a publicity stunt to make Labour look bad. Though they can do that on their own.In principle it sounds good, however I wonder if anything will come of it.....
Yes - flat tax system is whats required here in the UK - were laiden down with so many niche rules now these are so many its a total mess.
IIRC a certain US president back in the 80's totally simplified the tax rules - now 20-30 years later they are laiden down with rules/tax breaks.
Quite a few Eastern European countries have this flat rate system & it works well - I think the reason we dont adopt it is because we want to give breaks to people in certain situations.
IIRC a certain US president back in the 80's totally simplified the tax rules - now 20-30 years later they are laiden down with rules/tax breaks.
Quite a few Eastern European countries have this flat rate system & it works well - I think the reason we dont adopt it is because we want to give breaks to people in certain situations.
Employers are going to love 20% NI. 
Mind you, we employ people in France and NI and other social costs add near as dammit 50% to the cost of employing them. And as employees, they pay hardly any tax - what income the family has is divided amongst all the family memebers, and they get a 10% allowance for travelling to work!
Mind you, we employ people in France and NI and other social costs add near as dammit 50% to the cost of employing them. And as employees, they pay hardly any tax - what income the family has is divided amongst all the family memebers, and they get a 10% allowance for travelling to work!
Of course we do.
So you have the following:-
Basic Salary
Employers NI
Employers Pension Contribution
Comp car allowence
Comp car insurance
Employee Mobile phone
Employee Healthcare
Business Miles
Recruitment costs (these are high - say if someone earns £50k basic the recruitment agency will be getting paid not far off £15k).
The Shared service functions - HR/Payroll's additional work.
Then you can go down to calculating the fixed & variable costs of the building per desk but thats pretty rare - and only going to be an issue if you reach capacity.
So you have the following:-
Basic Salary
Employers NI
Employers Pension Contribution
Comp car allowence
Comp car insurance
Employee Mobile phone
Employee Healthcare
Business Miles
Recruitment costs (these are high - say if someone earns £50k basic the recruitment agency will be getting paid not far off £15k).
The Shared service functions - HR/Payroll's additional work.
Then you can go down to calculating the fixed & variable costs of the building per desk but thats pretty rare - and only going to be an issue if you reach capacity.
Harry Flashman said:
Guys, seriously.
Our tax is really not as bad as that in most other European nations.
It's how it's spent that's the problem. The party that aims to address that issue is the one that gets my vote.
Fully agree. I have no problem paying the tax I do, but the level of waste is sickening.Our tax is really not as bad as that in most other European nations.
It's how it's spent that's the problem. The party that aims to address that issue is the one that gets my vote.
anonymous said:
[redacted]
Of course.But...to use my example of the situation in France where NI is much higher and personal tax is lower - French gross salaries are slightly lower than in the UK (but employees will never admit this).
So what could happen in the UK if the 20:20 plan came along is that gross salaries could be held down (employers would argue that you don't need a pay rise as your net is going up). That also means employer NI wouldn't rise as much as might be imagined as it would be based on lower salaries.
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