Allow basic rate PAYE tax payers to "buy" an enhanced personal allowance. There exists already a system for Self Assessment taxpayers to make a payment on account towards their future tax / current bills. Why not allow PAYE taxpayers to do the same. Currently their are some of us that would rather not put spare our money in the banks' coffers and earn too much to claim tax credits. I would much rather give this spare money to the goverment to offset against my PAYE tax in return for a higher personal allowance, meaning that in the rainy years ahead I have more money in my pocket at the end of the month.

Why is this idea important?

Raising personal allowances costs the govenment billions each year, whilst I am not in principle in objection to this, and think it should continue. I think the government could well benefit from this system as it would receive money in year and would not have to wait for the traditional rush of money from SA taxpayers in January. Employers could also benefit because they will not have to deduct so much tax from their employees, thus increasing their cash flow by decreasing their tax payments to HMRC every month. The idea would work by people giving their projected income for the current / next tax year, the system work out how much tax they would pay. The person pays that tax upfront and in return their Personal allowance is raised to the level of their income, taking them out of tax completely. Over / Underpayments could be calculated at the end of the relevant tax year once thier P60 details have been submitted.

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