Abolish income tax altogether

Income tax is far too complex and thus difficult to administer (costly all round)  .Abolish income tax and tax everything that is bought.  This would give people the choice of what they pay for/pay tax on. 

Abolishing income tax would save the costs of all IRC offices, remove the need to chase tax evaders, remove the need for tax accountants or private investigators.

Why is this idea important?

Income tax is far too complex and thus difficult to administer (costly all round)  .Abolish income tax and tax everything that is bought.  This would give people the choice of what they pay for/pay tax on. 

Abolishing income tax would save the costs of all IRC offices, remove the need to chase tax evaders, remove the need for tax accountants or private investigators.

Replace income tax and nh contributions by a payrolltax

Income taxes and nh contributions are simply a penalty on working and are also highly intrusive placing the worker in an adversarial position to the government !

A payroll tax similar to that in France of around 60% for which the employer alone is responsible would bring in more revenue,and would crush the "black economy" since only the employer would have to declare the payroll and its total amount . If he did not declare an employee  he would be at that person's mercy thereafter since the employee would be committing no offence ,only the employer ! There would be no more tax dodging by working "on the side" since there would be no benefit to the employee to do so ! The "worker would keep every penny he earned;

The system would of course have to be phased in over a period of time and vat on luxury goods would be increased as would high value property taxes so that if the rich made themselves employees they would still have to pay more for what they wanted in order to live their customary  lifestyle.Tax havens and tax dodging would become redundant !

Why is this idea important?

Income taxes and nh contributions are simply a penalty on working and are also highly intrusive placing the worker in an adversarial position to the government !

A payroll tax similar to that in France of around 60% for which the employer alone is responsible would bring in more revenue,and would crush the "black economy" since only the employer would have to declare the payroll and its total amount . If he did not declare an employee  he would be at that person's mercy thereafter since the employee would be committing no offence ,only the employer ! There would be no more tax dodging by working "on the side" since there would be no benefit to the employee to do so ! The "worker would keep every penny he earned;

The system would of course have to be phased in over a period of time and vat on luxury goods would be increased as would high value property taxes so that if the rich made themselves employees they would still have to pay more for what they wanted in order to live their customary  lifestyle.Tax havens and tax dodging would become redundant !

Drop income tax by the same rate of VAT increase

Is it fair that I get up and go to work every morning while my neighbours live in a council provided house and live on Government handouts in the form of benifits?  It is about time the working public are rewarded for keeping the economy running.  I suggest that income tax is reduced by 2.5% across the board in January when VAT is raised to 20% . This will be a small reward for the hard working people in our country.  I would think that most working people would not mind an increase in VAT to 22 or 23% if income tax is reduced by the same margin.  That way the lazy layabouts and benefit cheats will also contribute to the state coffers instead of just sucking them dry!

Why is this idea important?

Is it fair that I get up and go to work every morning while my neighbours live in a council provided house and live on Government handouts in the form of benifits?  It is about time the working public are rewarded for keeping the economy running.  I suggest that income tax is reduced by 2.5% across the board in January when VAT is raised to 20% . This will be a small reward for the hard working people in our country.  I would think that most working people would not mind an increase in VAT to 22 or 23% if income tax is reduced by the same margin.  That way the lazy layabouts and benefit cheats will also contribute to the state coffers instead of just sucking them dry!

combine National Insurance with income tax

There is massive duplication of effort and cost in the administration and collection of income tax and National Insurance contributions from employed workers. The link between National Insurance contributions and benefits for employed workers is getting increasingly tenuous as years go by. For example, Statutory Sick Pay and Statutory Maternity Pay don’t depend on National Insurance contributions; State Pensions are paid out of general taxation, not the National Insurance fund.

Why is this idea important?

There is massive duplication of effort and cost in the administration and collection of income tax and National Insurance contributions from employed workers. The link between National Insurance contributions and benefits for employed workers is getting increasingly tenuous as years go by. For example, Statutory Sick Pay and Statutory Maternity Pay don’t depend on National Insurance contributions; State Pensions are paid out of general taxation, not the National Insurance fund.

Let each individual decide where their individual tax is spent

Have all individually based taxes decided on where to be spent by the specific individual paying them.

Let each person specify on their tax return or online where thier specific individual taxes are spent, whether it be; education, healthcare, infastructure, defense, transport, energy, or any other area. This doesn't have to be limited to income tax and can be applied to any other individually based tax. Any other less popular areas could then be supported by non individually based taxes. It probably wouldn't work well with VAT and shouldn't apply to large private corporations but otherwhise would be a very good idea.

Why is this idea important?

Have all individually based taxes decided on where to be spent by the specific individual paying them.

Let each person specify on their tax return or online where thier specific individual taxes are spent, whether it be; education, healthcare, infastructure, defense, transport, energy, or any other area. This doesn't have to be limited to income tax and can be applied to any other individually based tax. Any other less popular areas could then be supported by non individually based taxes. It probably wouldn't work well with VAT and shouldn't apply to large private corporations but otherwhise would be a very good idea.

Remove all disincentives to work

By getting rid of income tax and placing the burden of taxation on purchases you can remove all the disincentives to create wealth while at the same time help those on low incomes to have more cash available for the basics of surviving. We can reduce the cost to the country by making most of the tax inspectors and collectors into income generators rather than cost centres. We already have VAT on purchases. It must be within the abilities of the clever people at the HMRC to devise a stratified system whereby more VAT is charged on luxury items and less, or even none, on basics such as food and children’s clothing.

The tax amount would be set and collected at the point at which a product first enters the market and then transferred as a net amount, rather than as a percentage of the sale price to the next customer in the chain that finishes with the end user of the product. For example, the tax should be set when the manufacturer sells the product to a wholesaler or another manufacturer that incorporates that product into theirs, or  an importer first takes delivery of the product,  The tax could be set either on the cost price of the item or the Recommended Retail Price. Where the tax is applied to a service it is set on  the value at which the service is provided to the customer, for example the labour content of a bill for plumbing or building. The tax on the products used in these instances will already have been collected.

By transferring the tax as a net amount it will reduce the need for accountants and accounts staff to act as unpaid tax collectors, reducing the amount of time they spend on calculations, or checking calculations as well as reducing the cost to companies and the economy in general. This process will reduce the amount of paperwork needed and make the collection of the tax easier and cheaper. It will reduce the amount of people involved in setting and collecting the tax. The rate at which the tax is collected can be adjusted simply and remove the need for exemptions and prevent non-domicile residents from avoiding tax.

Why is this idea important?

By getting rid of income tax and placing the burden of taxation on purchases you can remove all the disincentives to create wealth while at the same time help those on low incomes to have more cash available for the basics of surviving. We can reduce the cost to the country by making most of the tax inspectors and collectors into income generators rather than cost centres. We already have VAT on purchases. It must be within the abilities of the clever people at the HMRC to devise a stratified system whereby more VAT is charged on luxury items and less, or even none, on basics such as food and children’s clothing.

The tax amount would be set and collected at the point at which a product first enters the market and then transferred as a net amount, rather than as a percentage of the sale price to the next customer in the chain that finishes with the end user of the product. For example, the tax should be set when the manufacturer sells the product to a wholesaler or another manufacturer that incorporates that product into theirs, or  an importer first takes delivery of the product,  The tax could be set either on the cost price of the item or the Recommended Retail Price. Where the tax is applied to a service it is set on  the value at which the service is provided to the customer, for example the labour content of a bill for plumbing or building. The tax on the products used in these instances will already have been collected.

By transferring the tax as a net amount it will reduce the need for accountants and accounts staff to act as unpaid tax collectors, reducing the amount of time they spend on calculations, or checking calculations as well as reducing the cost to companies and the economy in general. This process will reduce the amount of paperwork needed and make the collection of the tax easier and cheaper. It will reduce the amount of people involved in setting and collecting the tax. The rate at which the tax is collected can be adjusted simply and remove the need for exemptions and prevent non-domicile residents from avoiding tax.

Income tax, (investigation unit)

Much as we have officers that investigate benefit fraud ( although this is not as proactive as it should be) we should have a team ,a big team, of investigators checking on , in particular, those that give their own details of remuneration. I refer in particular to, so called taxi , and private hire, firms (and drivers) that seem to acquire large properties , fancy cars and all the trappings of wealth in a relatively short time. It is very difficult to check on these people if it is taken for granted that their claims are genuine because of a lack of investigators. I am sure that millions of pounds are not being paid into the coffers that should be.

 

      

Why is this idea important?

Much as we have officers that investigate benefit fraud ( although this is not as proactive as it should be) we should have a team ,a big team, of investigators checking on , in particular, those that give their own details of remuneration. I refer in particular to, so called taxi , and private hire, firms (and drivers) that seem to acquire large properties , fancy cars and all the trappings of wealth in a relatively short time. It is very difficult to check on these people if it is taken for granted that their claims are genuine because of a lack of investigators. I am sure that millions of pounds are not being paid into the coffers that should be.

 

      

REDUCE THE COMPLEXITY OF THE INCOME TAX SYSTEM

I've spent over 35 years working in taxation, firstly for HMRC and now in the private sector and I've seen layer upon layer of legislation added to an already highly complex system.  Someone needs to take a fresh look at the whole self assessment regime and complicated rules for everything from pension relief to capital gains, and bring it all back to basics.  Perhaps all we need is a high personal allowance and then basic and higher rate tax on the balance with no other allowances or deductions.

Why is this idea important?

I've spent over 35 years working in taxation, firstly for HMRC and now in the private sector and I've seen layer upon layer of legislation added to an already highly complex system.  Someone needs to take a fresh look at the whole self assessment regime and complicated rules for everything from pension relief to capital gains, and bring it all back to basics.  Perhaps all we need is a high personal allowance and then basic and higher rate tax on the balance with no other allowances or deductions.

Make Council Tax de-ductable against Income Tax

Presently, Council Tax payments are not de-ductable against Income tax .

So the tax payer is paying a direct taxation,-  twice, – on a portion of thier income. 

– Council Tax invoices are issued at the start of a tax year – for the year ahead – Income tax calculations (for the same year) make no allowance for these direct tax payments already made – Even though issued from two seperate arms of the state, both taxes are direct & the person has no option but to pay.

Why is this idea important?

Presently, Council Tax payments are not de-ductable against Income tax .

So the tax payer is paying a direct taxation,-  twice, – on a portion of thier income. 

– Council Tax invoices are issued at the start of a tax year – for the year ahead – Income tax calculations (for the same year) make no allowance for these direct tax payments already made – Even though issued from two seperate arms of the state, both taxes are direct & the person has no option but to pay.

Oblish Income Tax, VAT, Rates, Capital & Corperation, Duty

Fair Tax system, it has been said by top US econmical professors that if they were designing a tax system from new they would plan it on sales tax only. In the USA there is a growing grass roots desire for a fair and newer tax system for the 21st centry backed by buiness leader, senate membbers and the  man in the street. Google it….!

All wages paid as gross its all your money until you spend it, there is nothing wong with a verying degree of taxion that are transparent. These tax rates may veriry from 1% to 30% depending on the worth or banding value ie. Goods between £1 to £499 – £500 to £999 – £1000 to £2000 extra.

Or every item or service is independantly assesed for tax rateing.

The Tax would be linked to the econmy, And colled as a sales tax, this sales tax could be divided in to Federal (UK) Country, County and distric so all elements of goverment are founded by the products and service companines that are attracted to that region/area.

The tax would be collected across the counter, and paid weekly by retailers, buisness people in to local postoffice/bank holding accounts which would then be distrubited to all goverment main holding accounts on a monthly basies. (Free money to found postoffice bank to use on overnight money markets as a return for no admin charge to goverment)

This will also cut 50% or more of the civel servant at the inland revenue thus reducing a burden on the public purse. This would also reduce the red tape, it would benifit goverment as the tax revenue would be come availble every mounth rather than yearly or quarterly (VAT) this would then effect the way the goverment borrows money.

The implecation are fantasic the savings would benfit us all, I think there would need to be a regulation about removing money from UK and that would have to be taxed as it leaves.

Were there is a will theres a way, lets not dismiss this.

Every item sold would be subject a rate of tax (homes from 10% upto 30% for house over a certain value)

 

 

 

 

 

Why is this idea important?

Fair Tax system, it has been said by top US econmical professors that if they were designing a tax system from new they would plan it on sales tax only. In the USA there is a growing grass roots desire for a fair and newer tax system for the 21st centry backed by buiness leader, senate membbers and the  man in the street. Google it….!

All wages paid as gross its all your money until you spend it, there is nothing wong with a verying degree of taxion that are transparent. These tax rates may veriry from 1% to 30% depending on the worth or banding value ie. Goods between £1 to £499 – £500 to £999 – £1000 to £2000 extra.

Or every item or service is independantly assesed for tax rateing.

The Tax would be linked to the econmy, And colled as a sales tax, this sales tax could be divided in to Federal (UK) Country, County and distric so all elements of goverment are founded by the products and service companines that are attracted to that region/area.

The tax would be collected across the counter, and paid weekly by retailers, buisness people in to local postoffice/bank holding accounts which would then be distrubited to all goverment main holding accounts on a monthly basies. (Free money to found postoffice bank to use on overnight money markets as a return for no admin charge to goverment)

This will also cut 50% or more of the civel servant at the inland revenue thus reducing a burden on the public purse. This would also reduce the red tape, it would benifit goverment as the tax revenue would be come availble every mounth rather than yearly or quarterly (VAT) this would then effect the way the goverment borrows money.

The implecation are fantasic the savings would benfit us all, I think there would need to be a regulation about removing money from UK and that would have to be taxed as it leaves.

Were there is a will theres a way, lets not dismiss this.

Every item sold would be subject a rate of tax (homes from 10% upto 30% for house over a certain value)

 

 

 

 

 

Reduce Bureaucracy By Reducing Income Tax

Increase the threshold for Income Tax significantly – say to £50,000 p.a and remove most people from the Income tax system – with significant savings in administering income tax. Tax Credits cease to be relevant either.

To replace the revenue increase direct taxation – primarily VAT. There is no consequential increase in the adminstration of VAT as it is collected anyway atthe current rate.

Ensure that essentials are zero rated for VAT ensuring the less well off do not pay the increase.

A tax system then based upon peoples spending and related to whether they can afford it. If you buy the luxuries in life you can afford the tax.

Government should then live within the budget of what the population can afford.

Why is this idea important?

Increase the threshold for Income Tax significantly – say to £50,000 p.a and remove most people from the Income tax system – with significant savings in administering income tax. Tax Credits cease to be relevant either.

To replace the revenue increase direct taxation – primarily VAT. There is no consequential increase in the adminstration of VAT as it is collected anyway atthe current rate.

Ensure that essentials are zero rated for VAT ensuring the less well off do not pay the increase.

A tax system then based upon peoples spending and related to whether they can afford it. If you buy the luxuries in life you can afford the tax.

Government should then live within the budget of what the population can afford.

Take Small Businesses out of VAT with <£250k turnover

Small businesses have too much government paperwork, red tape and tax. Please take any small business out of VAT that has a turnover less than £250,000 p.a.. For the small amount I have to pay, it is a lot of work for me, and probably costs HMRC a dispoportionate amount to collect it.

Why is this idea important?

Small businesses have too much government paperwork, red tape and tax. Please take any small business out of VAT that has a turnover less than £250,000 p.a.. For the small amount I have to pay, it is a lot of work for me, and probably costs HMRC a dispoportionate amount to collect it.

Change income tax and national insurance to labour tax

Income tax and national insurance are two taxes people pay out of their wages. They should be replaced by a labour tax that companies pay for and is a progressive tax in relation to the value of labour served.

Why is this idea important?

Income tax and national insurance are two taxes people pay out of their wages. They should be replaced by a labour tax that companies pay for and is a progressive tax in relation to the value of labour served.

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.

Reintroduce supertax for obscene salaries

A supertax bracket of 75% (or more) should be introduced for incomes above £10,000 a week which should go directly to organisations like the NHS.

Recipients of such huge salaries could get relief from the tax on any money they give directly to charity.

Why is this idea important?

A supertax bracket of 75% (or more) should be introduced for incomes above £10,000 a week which should go directly to organisations like the NHS.

Recipients of such huge salaries could get relief from the tax on any money they give directly to charity.

Repeal the 91 day tax law

The UK has in a place, with a great many foreign nations inc EU, a 'double taxation agreement' of 183 days. This effectively means that if you are in the UK for 183 days or more then you pay UK income tax and vice versa – and do not have to pay income tax  in both countries.

The last government introduced the 91 day tax rule, which means that if you are in the UK for 91 days or more per year, averaged over 4 years, you are liable for UK income tax, irespective of whether you have paid income tax in another country, based on the 183 day rule.

So for me this means that as I work for a european based company and that as I am in my country of work for more than 183 days per year, that I pay my Income tax in the country of employment (of which is the intention of the 183 day rule). However I cannot reside in the UK for my days off as this would be more than the 91 days and then I would have to pay income tax again in the UK.

 

Why is this idea important?

The UK has in a place, with a great many foreign nations inc EU, a 'double taxation agreement' of 183 days. This effectively means that if you are in the UK for 183 days or more then you pay UK income tax and vice versa – and do not have to pay income tax  in both countries.

The last government introduced the 91 day tax rule, which means that if you are in the UK for 91 days or more per year, averaged over 4 years, you are liable for UK income tax, irespective of whether you have paid income tax in another country, based on the 183 day rule.

So for me this means that as I work for a european based company and that as I am in my country of work for more than 183 days per year, that I pay my Income tax in the country of employment (of which is the intention of the 183 day rule). However I cannot reside in the UK for my days off as this would be more than the 91 days and then I would have to pay income tax again in the UK.

 

abolish income tax

I think there are better ways to have someone to contribute to society than to tax them on there income. The current system is unfair as it punishes success and effort. One person is taking on benefits the other is getting taxed more than half of their income. As someone young it seems the path of least resistance to forget my potential and just say "oh well i am useless now give me a house, benefits and all the other hand outs and not have to give anything back".

It also makes the government needy on people working as much as possible. It encourages It a unbalance in some people lives.

 

ricky

Why is this idea important?

I think there are better ways to have someone to contribute to society than to tax them on there income. The current system is unfair as it punishes success and effort. One person is taking on benefits the other is getting taxed more than half of their income. As someone young it seems the path of least resistance to forget my potential and just say "oh well i am useless now give me a house, benefits and all the other hand outs and not have to give anything back".

It also makes the government needy on people working as much as possible. It encourages It a unbalance in some people lives.

 

ricky