Covid Relief - Moral Hazard?...
Discussion
The announcements of relief are welcome and necessary for those genuinely in need.
I have a niggling fear that the chancellors generosity could however be exploited to the detriment of the national purse. That those that might otherwise have steeled themselves and pushed through, will now have less incentive to do so...
The bill for this is astronomical.
Thoughts?
I have a niggling fear that the chancellors generosity could however be exploited to the detriment of the national purse. That those that might otherwise have steeled themselves and pushed through, will now have less incentive to do so...
The bill for this is astronomical.
Thoughts?
Yes the self employed payout was a particular joke. Yes some need it and should get it but some of the people I know who are self employed are still fully working got cash in the bank so have just been given £7.5k for no reason?. All the while the nhs staff on low wages are getting sweet FA?.
Take their foot off the gas? If they are dense enough to think the gift horse doesn't have teeth, then they probably don't have the gumption to get through to July, or the wit to run their own company. Sensible folk will take the grant, keep working where safe, and squirrel money for when the tax bill come due, as it will in due course.
randlemarcus said:
Take their foot off the gas? If they are dense enough to think the gift horse doesn't have teeth, then they probably don't have the gumption to get through to July, or the wit to run their own company. Sensible folk will take the grant, keep working where safe, and squirrel money for when the tax bill come due, as it will in due course.
So, take the support though not necessarily and immediately needed, and ultimately share the bill with those that don’t qualify or ‘play the game’?Sounds like exactly my concern.
DoubleSix said:
So, take the support though not necessarily and immediately needed, and ultimately share the bill with those that don’t qualify?
Sounds like exactly my concern.
Or don't take the grant, and pay for it later? This is about the govt handing money out like sweeties to try and keep the economy going. There will be a reckoning later, and it will be global, so unless you fancy Tuvalu for retirement, we're all going to be paying more back. Sounds like exactly my concern.
randlemarcus said:
DoubleSix said:
So, take the support though not necessarily and immediately needed, and ultimately share the bill with those that don’t qualify?
Sounds like exactly my concern.
Or don't take the grant, and pay for it later? This is about the govt handing money out like sweeties to try and keep the economy going. There will be a reckoning later, and it will be global, so unless you fancy Tuvalu for retirement, we're all going to be paying more back. Sounds like exactly my concern.
Has Rishi misjudged that balance and burdened the masses unreasonably?
The self employed relief is a joke. Yes they pay tax but a lot hide so much of it. I know of many trades locally who are piling the cash in - plasterers making about £800 a week, groundworkers similar (some quite a bit more) doing driveways and landscaping.
Meanwhile emergency services are taking home £300-500 a week.
Doesn't really add up does it?
Meanwhile emergency services are taking home £300-500 a week.
Doesn't really add up does it?
Chicken Chaser said:
The self employed relief is a joke. Yes they pay tax but a lot hide so much of it. I know of many trades locally who are piling the cash in - plasterers making about £800 a week, groundworkers similar (some quite a bit more) doing driveways and landscaping.
Meanwhile emergency services are taking home £300-500 a week.
Doesn't really add up does it?
Don’t tar us all with the same brush please. Meanwhile emergency services are taking home £300-500 a week.
Doesn't really add up does it?
thebraketester said:
Don’t tar us all with the same brush please.
No I apologise, self employed aren't all the same, my FiL is in the trade and as a qualified gas engineer he doesn't seem to be picking up what these guys are charging. I think the fact is that some of the trades have been making piles of it over the last couple of years as the construction and self build extension stuff has gone wild and now it's like pressing a reset button. I bet some of the quotes might come back to real figures now this has hit. Sunak has said that in return for the support he is giving self employed workers, they will no longer be able to pay less tax than others. So maybe new rules will come into place and make things a lot fairer. This seems a good idea to me being PAYE and feeling as if I am getting a terrible deal compared to other lads I work with who are Ltd and hide their money.
I wonder if we will no longer pay 40% (41% in Scotland) at additional rate after this all blows over, though. 45/50% tax on the horizon?
I wonder if we will no longer pay 40% (41% in Scotland) at additional rate after this all blows over, though. 45/50% tax on the horizon?
LucasA said:
Sunak has said that in return for the support he is giving self employed workers, they will no longer be able to pay less tax than others. So maybe new rules will come into place and make things a lot fairer. 45/50% tax on the horizon?
It looks pretty simple to eliminate National Insurance in its current form and apply an additional % of tax across income from all sources, perhaps without an upper limit. Eligibility for State Pension could then be determined by looking at the person's tax history.
rockin said:
It looks pretty simple to eliminate National Insurance in its current form and apply an additional % of tax across income from all sources, perhaps without an upper limit.
Eligibility for State Pension could then be determined by looking at the person's tax history.
So pensioners would then be paying extra tax as they are now exempt from NI. Eligibility for State Pension could then be determined by looking at the person's tax history.
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