Collect higher rate bank interest at source

Standard rate bank interest is automatically collected at source, so why not simplify tax system by having a persons correct tax level collected by the banks. Implemented as a notification by the individual to the bank with year end anomilies sorted out via the tax return. 

Why is this idea important?

Standard rate bank interest is automatically collected at source, so why not simplify tax system by having a persons correct tax level collected by the banks. Implemented as a notification by the individual to the bank with year end anomilies sorted out via the tax return. 

Bring in a 9 min tax return like this former British Colony

I used to live in Hong Kong and there you realise how simple a tax system can be. Read this article about someone from Hong Kong who finds the simplicity makes him happy.

http://www.batgung.com/taxes

see a slightly more erudite article on the hong kong tax system

http://www.austlii.edu.au/au/journals/JATTA/2005/18.html#Heading306

The tax code in Hong Kong (including all the rules of procedure, appeals methods and actual law) forms only  part  of the annually published government gazette. The whole code is only 200 pages long.

A tax return in Hong Kong takes less than 9 minutes to fill out. Hong Kong has simply stripped away many of the complexities of the tax code in favor of simplicity. They treat tax-payers like adults  and guess what, Hong Kong's government always runs at a surplus, no-one worries about their taxes, people are rarely taken to court by the tax-man and there are very few cases of people trying to evade the law.

 

Why is this idea important?

I used to live in Hong Kong and there you realise how simple a tax system can be. Read this article about someone from Hong Kong who finds the simplicity makes him happy.

http://www.batgung.com/taxes

see a slightly more erudite article on the hong kong tax system

http://www.austlii.edu.au/au/journals/JATTA/2005/18.html#Heading306

The tax code in Hong Kong (including all the rules of procedure, appeals methods and actual law) forms only  part  of the annually published government gazette. The whole code is only 200 pages long.

A tax return in Hong Kong takes less than 9 minutes to fill out. Hong Kong has simply stripped away many of the complexities of the tax code in favor of simplicity. They treat tax-payers like adults  and guess what, Hong Kong's government always runs at a surplus, no-one worries about their taxes, people are rarely taken to court by the tax-man and there are very few cases of people trying to evade the law.

 

Review Non-EU Business Import Charges

Why are non-EU imports subject to Output VAT cash collection at the date of supply while goods from EU countries have the notional VAT recorded both as Output and Input but crucially the trader does not suffer the loss of their funds?

Why is this idea important?

Why are non-EU imports subject to Output VAT cash collection at the date of supply while goods from EU countries have the notional VAT recorded both as Output and Input but crucially the trader does not suffer the loss of their funds?

Abolish National Insurance / combine NI with income tax

National Insurance should be abolished. It can be combined into a single, simple income tax.

State pension entitlement can instead by tied to income tax contributions, if necessary continueing the entitlement for non-working people to continue to acrue pension entitlement.

Why is this idea important?

National Insurance should be abolished. It can be combined into a single, simple income tax.

State pension entitlement can instead by tied to income tax contributions, if necessary continueing the entitlement for non-working people to continue to acrue pension entitlement.

cis tax system – bad for business

The current cis tax system is causing small to medium sized business to fail by causing them unnecessary cash flow and red tape problems

 

In the contracting industry, you have main contractors, who subcontract to small to medium sized companies, who in turn sub contract to sole traders

 

The main contractor deducts 18% tax before paying invoices from the small to medium sized sub contractors.  This 185 tax deduction is then paid to HMRC and the main contractor issues a tax voucher to the sub contractor

 

The invoice submitted by the small to medium sized business is not an invoice for profit alone, the invoice is likely to contain a profit element of between 20/30% the balance is their own costs including payments to their own small sole trader subcontractors

 

The tax taken by CIS cannot be set against corporation tax but must be reclaimed or set against PAYE

 

This is a very unfair system and is causing bankruptcies as a result of HMRC taking money they are not entitled to and which they largely have to pay back to the tax payer eventually

 

In addition to the cash flow problems, the system creates a nightmare level of beaurocracy, as the tax payer cannot claim back the tax paid until it has the tax voucher from the main contract – getting this is not within their control, they have to write and phone constantly to get the vouchers, then then have to spend hours calculating the cis tax taken from them by the main contractor and then fight with the tax department to reclaim the overpayment.

Why is this idea important?

The current cis tax system is causing small to medium sized business to fail by causing them unnecessary cash flow and red tape problems

 

In the contracting industry, you have main contractors, who subcontract to small to medium sized companies, who in turn sub contract to sole traders

 

The main contractor deducts 18% tax before paying invoices from the small to medium sized sub contractors.  This 185 tax deduction is then paid to HMRC and the main contractor issues a tax voucher to the sub contractor

 

The invoice submitted by the small to medium sized business is not an invoice for profit alone, the invoice is likely to contain a profit element of between 20/30% the balance is their own costs including payments to their own small sole trader subcontractors

 

The tax taken by CIS cannot be set against corporation tax but must be reclaimed or set against PAYE

 

This is a very unfair system and is causing bankruptcies as a result of HMRC taking money they are not entitled to and which they largely have to pay back to the tax payer eventually

 

In addition to the cash flow problems, the system creates a nightmare level of beaurocracy, as the tax payer cannot claim back the tax paid until it has the tax voucher from the main contract – getting this is not within their control, they have to write and phone constantly to get the vouchers, then then have to spend hours calculating the cis tax taken from them by the main contractor and then fight with the tax department to reclaim the overpayment.

Tax Foreign lorries & Vans coming into UK

If we put a toll tax on all foreign lorries and large vans say £100 for artics and a sliding scale for smaller vehicles coming into the Country it would not only raise a large amount of revenue but it would also make for a more even playing field for our own transport Companies.

It should not be difficult or expensive to administer either by charging a tax on the ferry ticket or directing traffic through a barrier just like on the toll roads abroad.

We in this Country pay road tax to use our own roads for free but when we travel abroad to France/Germany/Spain etc we pay to use the toll roads. All traffic in these countries do not pay tax on their vehicles so therefore when it comes to negotiating a price for any job they have an advantage which is unfair to our own transport Companies (especially the small ones). 

Why is this idea important?

If we put a toll tax on all foreign lorries and large vans say £100 for artics and a sliding scale for smaller vehicles coming into the Country it would not only raise a large amount of revenue but it would also make for a more even playing field for our own transport Companies.

It should not be difficult or expensive to administer either by charging a tax on the ferry ticket or directing traffic through a barrier just like on the toll roads abroad.

We in this Country pay road tax to use our own roads for free but when we travel abroad to France/Germany/Spain etc we pay to use the toll roads. All traffic in these countries do not pay tax on their vehicles so therefore when it comes to negotiating a price for any job they have an advantage which is unfair to our own transport Companies (especially the small ones). 

Introduce a “Roof” tax to deter property speculation

To prevent speculation inflating house prices add a "roof" tax for additionally owned houses/flats – with the caveat that family members living at the same residence cannot own multiple properites without paying the tax.

Why is this idea important?

To prevent speculation inflating house prices add a "roof" tax for additionally owned houses/flats – with the caveat that family members living at the same residence cannot own multiple properites without paying the tax.

Save £2bn:Stop HRMC forcing iXBRL ‘only’ filing on Small Coys.

Small Companies (all 2 Million of them) will be required to electronically file their accounts with HMRC in something called in-line eXtended Business Reporting Language (iXBRL)  This is a weird dialect of XML embedded in an html document – no other electronic from will be acceptable and – THERE WILL BE NO 'ON-PAPER' OPTION from April 2011.

The work involved in preparing every year's accounts filing will easily cost every small company over a thousand pounds.  This regulation will cost UK small companies upwards of 2 Billion pounds.  The do this in the present economic circumstances is absurd!

Why is this idea important?

Small Companies (all 2 Million of them) will be required to electronically file their accounts with HMRC in something called in-line eXtended Business Reporting Language (iXBRL)  This is a weird dialect of XML embedded in an html document – no other electronic from will be acceptable and – THERE WILL BE NO 'ON-PAPER' OPTION from April 2011.

The work involved in preparing every year's accounts filing will easily cost every small company over a thousand pounds.  This regulation will cost UK small companies upwards of 2 Billion pounds.  The do this in the present economic circumstances is absurd!

Abolish business rates

Abolish business rates. I realise that in the current climate the government could not possibly afford such a generous tax cut, so I propose making up for the lost tax revenue by increasing corporation tax by whatever amount would make the whole thing revenue neutral.

Why is this idea important?

Abolish business rates. I realise that in the current climate the government could not possibly afford such a generous tax cut, so I propose making up for the lost tax revenue by increasing corporation tax by whatever amount would make the whole thing revenue neutral.

Reform VAT rules

VAT was originally intended as a tax on luxuries but is now charged on almost all essentials, including domestic fuel and some foods, while other goods which we could survive without are either zero-rated or exempt, such as books (other than educational), newspapers and magazines. The system badly needs reforming. If this was done, the rise in VAT to 20% would not be necessary.

Why is this idea important?

VAT was originally intended as a tax on luxuries but is now charged on almost all essentials, including domestic fuel and some foods, while other goods which we could survive without are either zero-rated or exempt, such as books (other than educational), newspapers and magazines. The system badly needs reforming. If this was done, the rise in VAT to 20% would not be necessary.

Remove the tax liablity from Lettings Agents when dealing with Non Resident Landlords

Every year lettings agents who managed properties owned by non resident landords have to file a return outlining landlords income and expenses. Lets remove this burden and leave it to the landlords and their accountants toliase with the tax office. The crazy thing about this regulation is that if the agent gets it wrong they are the ones who are fined (not the landlord) !!

Why is this idea important?

Every year lettings agents who managed properties owned by non resident landords have to file a return outlining landlords income and expenses. Lets remove this burden and leave it to the landlords and their accountants toliase with the tax office. The crazy thing about this regulation is that if the agent gets it wrong they are the ones who are fined (not the landlord) !!

Simplify the Tax system

Scrap all current taxes.

Introduce a tiered system of tax.

Tier1. Personal income. All personal income, from the first pound to be taxed on a graduating scale. No deductions. Investment income and such to be classed as personal.

Tier2. Business income. All business income to be taxed at a fixed amount. No deductions.

Tier3. VAT

Tier4. Additional duty, petrol, alcohol and such.

Why is this idea important?

Scrap all current taxes.

Introduce a tiered system of tax.

Tier1. Personal income. All personal income, from the first pound to be taxed on a graduating scale. No deductions. Investment income and such to be classed as personal.

Tier2. Business income. All business income to be taxed at a fixed amount. No deductions.

Tier3. VAT

Tier4. Additional duty, petrol, alcohol and such.

Reduce Tax and Employment Regulation for Start Ups

Our economic will be driven in part by re-employing public sector workers in the private sector in the way the coal miners and factory workers were encouraged to start up businesses. Also offer ways for experienced directors of SMEs sideswiped by the 2007-2010 crash to get back on their feet again. This would mean: 

1. Sidestep the banks cowardly decision making by offering direct Govt backed funding/loans through the Govt supported banks

2. No Employers NI for first 3 years of a business, and 20% grants towards hiring graduates or ex public sector staff

3. Exemptions from full reach of employment legislation for 3 years or 10 staff which ever comes first. 

4. Either repeal Companies Act 2006 or make a Lite version for Companies under 10 staff or 500k turnover. Particularly with Directors responsibilities and the processes surrounding Insolvency. Most SME owners have no inkling of their liabilities under this leviathan Act. 

that should help a lot.

Why is this idea important?

Our economic will be driven in part by re-employing public sector workers in the private sector in the way the coal miners and factory workers were encouraged to start up businesses. Also offer ways for experienced directors of SMEs sideswiped by the 2007-2010 crash to get back on their feet again. This would mean: 

1. Sidestep the banks cowardly decision making by offering direct Govt backed funding/loans through the Govt supported banks

2. No Employers NI for first 3 years of a business, and 20% grants towards hiring graduates or ex public sector staff

3. Exemptions from full reach of employment legislation for 3 years or 10 staff which ever comes first. 

4. Either repeal Companies Act 2006 or make a Lite version for Companies under 10 staff or 500k turnover. Particularly with Directors responsibilities and the processes surrounding Insolvency. Most SME owners have no inkling of their liabilities under this leviathan Act. 

that should help a lot.

Publish information on tax paid for different income groups

It is not clear how much (income) tax is paid by people with differing incomes. There are rumours that 'the rich' can find ways to avoid paying tax. Can we therefore see an anonymous breakdown eg histograms, of how much tax is paid by people on diferent incomes. It should be published both as a percentage and as a total amount.

Why is this idea important?

It is not clear how much (income) tax is paid by people with differing incomes. There are rumours that 'the rich' can find ways to avoid paying tax. Can we therefore see an anonymous breakdown eg histograms, of how much tax is paid by people on diferent incomes. It should be published both as a percentage and as a total amount.

make one-person business start-up easier

There is a period while an individual is attempting to find clients (e.g. copy editing) in order to become independent while still working as an employee elsewhere, when one main client provides more than enough work to fill the available time (evenings, weekends). Taking on other projects (clients) under these circumstances can be a slow business. One cannot obtain independent status, a VAT number etc. without at least 3 established clients, or so I believe. Yet if one has only one main client for a period of time, one is then considered "an employee" of that main client. This rule was probably put in place in order to stop employees being exploited. Its rigidity has impeded me from establishing myself independently within Switzerland and following enquiries ( I am a British citizen) seems to apply in the UK. Is there a way in which this start-up period can be made more flexible, maybe a period of 2 years to establish the first 3-4 clients, particularly now that many people may lose their jobs and would welcome the opportunity of a flexible way out of their predicament? Of course, all income would be declared for tax purposes.

Why is this idea important?

There is a period while an individual is attempting to find clients (e.g. copy editing) in order to become independent while still working as an employee elsewhere, when one main client provides more than enough work to fill the available time (evenings, weekends). Taking on other projects (clients) under these circumstances can be a slow business. One cannot obtain independent status, a VAT number etc. without at least 3 established clients, or so I believe. Yet if one has only one main client for a period of time, one is then considered "an employee" of that main client. This rule was probably put in place in order to stop employees being exploited. Its rigidity has impeded me from establishing myself independently within Switzerland and following enquiries ( I am a British citizen) seems to apply in the UK. Is there a way in which this start-up period can be made more flexible, maybe a period of 2 years to establish the first 3-4 clients, particularly now that many people may lose their jobs and would welcome the opportunity of a flexible way out of their predicament? Of course, all income would be declared for tax purposes.

Stop taxing pensioners

It is completely unfair that someone on a state pension should have to pay a proportion of this back to the Government as tax.

Government don't seem to be open about the fact that pensions are taxed when they annouce the state pension allowances.

As pensioners have paid tax for all of their working lives it seems unreasonable to tax them further on their pensions.

Why is this idea important?

It is completely unfair that someone on a state pension should have to pay a proportion of this back to the Government as tax.

Government don't seem to be open about the fact that pensions are taxed when they annouce the state pension allowances.

As pensioners have paid tax for all of their working lives it seems unreasonable to tax them further on their pensions.

Abolish Double NI Contriubtions For Self Employed

I propose the abolition of the double NI contributions paid by the self-employed.   They currently have to pay two classes of National Insurance, for both employer and employee.

Why is this idea important?

I propose the abolition of the double NI contributions paid by the self-employed.   They currently have to pay two classes of National Insurance, for both employer and employee.

Expenses Taxation (IR480)

One aspect of the recent MP expenses scandal that was not highlighted is the difference in treatment of MP's expenses versus those of us who pay their expenses under IR480.

If I work away from home, or as soon as I know that this will be the case, my travel, accommodation and other expenses become taxable under IR480.  MP's seem to be totally exempt from this rule.

IR480 seems to be in the same vein as IR35 in assuming that we are all "at it" in avoiding tax when in fact all it does is serve to increase the cost of the services that companies and individuals provide in the UK economy.

In a similar vein I am not allowed to "entertain" my customers on pre tax income and neither am I permitted to provide them with a christmas gift of alcohol should I choose.

In government however MP's and ministers regularly entertain all and sundry out of the public purse and in far more lavish circumstances, that I have contributed towards providing, than I can afford.

Let's have some equality !

Oh and a drugs and alcohol policy in the Houses of Parliament should be used to remove subsidised alcohol from the menu of the MP's works canteen !

Why is this idea important?

One aspect of the recent MP expenses scandal that was not highlighted is the difference in treatment of MP's expenses versus those of us who pay their expenses under IR480.

If I work away from home, or as soon as I know that this will be the case, my travel, accommodation and other expenses become taxable under IR480.  MP's seem to be totally exempt from this rule.

IR480 seems to be in the same vein as IR35 in assuming that we are all "at it" in avoiding tax when in fact all it does is serve to increase the cost of the services that companies and individuals provide in the UK economy.

In a similar vein I am not allowed to "entertain" my customers on pre tax income and neither am I permitted to provide them with a christmas gift of alcohol should I choose.

In government however MP's and ministers regularly entertain all and sundry out of the public purse and in far more lavish circumstances, that I have contributed towards providing, than I can afford.

Let's have some equality !

Oh and a drugs and alcohol policy in the Houses of Parliament should be used to remove subsidised alcohol from the menu of the MP's works canteen !

Scrap ‘tax on account’ robbery of small businesses

The current tax situation for the self-employed & small businesses, whereby they are required to pay half the coming year's tax in advance 'on account', is completely unnaccepatable & counter productive to business growth.
Imagine if employees were told they had to pay half of the next year's tax in advance in addition to their existing tax burden? There would be rioting in the streets!
It's impossible in a recession to predict the coming year's earnings & totally unrealistic for HMRC to 'assume' you will earn the same amount in the coming year.
This is daylight robbery & must be stopped. You are allowed to put in a 'lower estimate' (with yet more additional form filling) but if this estimate is wrong you are then penalised with interest!
How can this be conducive to small business confidence & growth? Businesses are living in a state of perpetual financial anxiety & this has been the last straw.
Come on Coalition….scrap this totally unfair burden & prove you have small business' interests at heart, unlike the last Labour government.

Why is this idea important?

The current tax situation for the self-employed & small businesses, whereby they are required to pay half the coming year's tax in advance 'on account', is completely unnaccepatable & counter productive to business growth.
Imagine if employees were told they had to pay half of the next year's tax in advance in addition to their existing tax burden? There would be rioting in the streets!
It's impossible in a recession to predict the coming year's earnings & totally unrealistic for HMRC to 'assume' you will earn the same amount in the coming year.
This is daylight robbery & must be stopped. You are allowed to put in a 'lower estimate' (with yet more additional form filling) but if this estimate is wrong you are then penalised with interest!
How can this be conducive to small business confidence & growth? Businesses are living in a state of perpetual financial anxiety & this has been the last straw.
Come on Coalition….scrap this totally unfair burden & prove you have small business' interests at heart, unlike the last Labour government.

Abolish exceptional HMRC rights such as distraint

While HMRC have lost certain status such as preffered creditor, it still enjoy massive amount of powers over individuals and companies.

HMRC have rights such as distraint where they can seize property from your premises or house "bailiff style".

They can also upon deciding "judge and jury" that you are using your car for tobacco or alcohol contraband, seize the said vehicle at the port.

They make enormous mistakes but it is never their faults and yet, they have the right to request people be put in prison when their only error is not knowing they were no longer entitled to certain benefits or tax credits.

Why is this idea important?

While HMRC have lost certain status such as preffered creditor, it still enjoy massive amount of powers over individuals and companies.

HMRC have rights such as distraint where they can seize property from your premises or house "bailiff style".

They can also upon deciding "judge and jury" that you are using your car for tobacco or alcohol contraband, seize the said vehicle at the port.

They make enormous mistakes but it is never their faults and yet, they have the right to request people be put in prison when their only error is not knowing they were no longer entitled to certain benefits or tax credits.

Make the Tax System Simpler!

I don't understand why the tax system has to be so complicated, you have income tax, council tax, national insurance contributions as well as tons more "direct" & "indirect" taxes. Whilst HMRC has done a great job with their new self assesment online system it still is far to complicated, especially for those of us with small businesses.

Why is this idea important?

I don't understand why the tax system has to be so complicated, you have income tax, council tax, national insurance contributions as well as tons more "direct" & "indirect" taxes. Whilst HMRC has done a great job with their new self assesment online system it still is far to complicated, especially for those of us with small businesses.

Print FULL P60 Yourself

At the end of every year, HMRC INSIST you order the P60 templates (and other documents like this) from them for printing on top of. This means HMRC have the following costs :-
1. Printing the forms.
2. Packing them up when a company orders some.
3. Cost of postage to send them to the company.

Also remember that a lot of companies order more than they need as spares AND some in case printing fails first time.

Another problem for this is when it comes to printing onto them. Alignment has ALWAYS failed when I have printed mine and often caused wasted sheets. If you let the software providers have the template and integrate it, the entire page could be generated by their software and no alignment problems would exist.

Why is this idea important?

At the end of every year, HMRC INSIST you order the P60 templates (and other documents like this) from them for printing on top of. This means HMRC have the following costs :-
1. Printing the forms.
2. Packing them up when a company orders some.
3. Cost of postage to send them to the company.

Also remember that a lot of companies order more than they need as spares AND some in case printing fails first time.

Another problem for this is when it comes to printing onto them. Alignment has ALWAYS failed when I have printed mine and often caused wasted sheets. If you let the software providers have the template and integrate it, the entire page could be generated by their software and no alignment problems would exist.