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.

Repeal Employee’s National Insurance Contributions

Originally conceived as a method of collecting money for pensions, this is not a hypothecated tax and now serves no distinct purpose.  By scrapping it and increasing income tax we could pay less and the govt would collect the same by removing a tier of civil servants responsible for administering it and losing the associated cost.

Benefits could be linked to payment of income tax (instead of NI) if desired.

Why is this idea important?

Originally conceived as a method of collecting money for pensions, this is not a hypothecated tax and now serves no distinct purpose.  By scrapping it and increasing income tax we could pay less and the govt would collect the same by removing a tier of civil servants responsible for administering it and losing the associated cost.

Benefits could be linked to payment of income tax (instead of NI) if desired.

Abolish the time limit on paying retrospective National Insurance Contributions

Abolish the time limit on paying retrospective National Insurance Contributions

 

If you have a hole in your NI record, either because you did not have a job yet did not claim benefits,or because your employer did not pass on the deductions he took from your pay, then you can make voluntary contributions to fill in the gap – but only up to a certain time. After that time it is too late. People who wish to pay into the state coffers should not have to do it within a time limit.  It may be that you only find out about the gap when it is too late, as in the case of the employer defaulting.

Why is this idea important?

Abolish the time limit on paying retrospective National Insurance Contributions

 

If you have a hole in your NI record, either because you did not have a job yet did not claim benefits,or because your employer did not pass on the deductions he took from your pay, then you can make voluntary contributions to fill in the gap – but only up to a certain time. After that time it is too late. People who wish to pay into the state coffers should not have to do it within a time limit.  It may be that you only find out about the gap when it is too late, as in the case of the employer defaulting.

Calculate benefits and tax credits per individual, not per couple

Calculate jobseekers allowance and working tax credits on adults' individual NI contributions and work history – not on what their partner earns.

Why is this idea important?

Calculate jobseekers allowance and working tax credits on adults' individual NI contributions and work history – not on what their partner earns.

Self-Employed National Insurance & Tax

I've got an idea that will bring millions into the government pockets. How about stopping the self-employed people pay tax and NI. I have a group of about ten friends, of which I am the only one who is on PAYE. EVERY SINGLE ONE OF THEM fiddles their tax returns, in fact they earn much more than me and still pay less tax and MUCH less NI. They explait the loop-hole which means that they work for the same company, in the same place, doing the the same job and they still manage to stay self-employed. Take on of my "friends" he's a pipe-welder working in the same factory every single day, earns around 70K per year and pays 20% tax and about £4.00 per week NI. OK so he doesnt get sick pay or holiday, but do the maths. Also being self-employed his employer is robbing me and you. My employer has to pay employees NI which I think is about 12%, so how unfair is that. Just to let you know how completely ridiculously easy it is to send fake invoices and receipts through the tax system – type it on an Excel spreadsheet and send it to an accoutant – there easy as that no receipts are EVER asked for. I urge the government to look into this farce and tackle it immediately. Either by increasing substantially the amount of people who get checked, or get rid of the self-employed system as it is and you will raise BILLIONS in cheated tax and NI. By the way before you say it no I wont grass them up individually – and thats the problem.

Why is this idea important?

I've got an idea that will bring millions into the government pockets. How about stopping the self-employed people pay tax and NI. I have a group of about ten friends, of which I am the only one who is on PAYE. EVERY SINGLE ONE OF THEM fiddles their tax returns, in fact they earn much more than me and still pay less tax and MUCH less NI. They explait the loop-hole which means that they work for the same company, in the same place, doing the the same job and they still manage to stay self-employed. Take on of my "friends" he's a pipe-welder working in the same factory every single day, earns around 70K per year and pays 20% tax and about £4.00 per week NI. OK so he doesnt get sick pay or holiday, but do the maths. Also being self-employed his employer is robbing me and you. My employer has to pay employees NI which I think is about 12%, so how unfair is that. Just to let you know how completely ridiculously easy it is to send fake invoices and receipts through the tax system – type it on an Excel spreadsheet and send it to an accoutant – there easy as that no receipts are EVER asked for. I urge the government to look into this farce and tackle it immediately. Either by increasing substantially the amount of people who get checked, or get rid of the self-employed system as it is and you will raise BILLIONS in cheated tax and NI. By the way before you say it no I wont grass them up individually – and thats the problem.

merge “employer’s” and “employee’s” national insurance: it’s all our money anyway

End employer's national insurance contribution increase employee's national insurance contribution to compensate.

Why is this idea important?

End employer's national insurance contribution increase employee's national insurance contribution to compensate.

Simple TAX/NI

Combine both tax and NI .Completely discard the levels,bands and allowances of all descriptions. Everyone then pays say 10p in the £ on every £ of income.Pensions and welfare benefits could be raised by the same amount to avoid hardships in those areas.The example of 10p in the £ could be increased or decreased in each budget dependant upon the countries financial position .The amount saved in administration from Govt level down would be vast and everyone could could calculate if their tax paid was correct or not.

Why is this idea important?

Combine both tax and NI .Completely discard the levels,bands and allowances of all descriptions. Everyone then pays say 10p in the £ on every £ of income.Pensions and welfare benefits could be raised by the same amount to avoid hardships in those areas.The example of 10p in the £ could be increased or decreased in each budget dependant upon the countries financial position .The amount saved in administration from Govt level down would be vast and everyone could could calculate if their tax paid was correct or not.

Repeal National Insurance and employment taxes and replace witha Carbon Tax

Gradually bring in a Carbon Tax for every item sold.  This would have to be flexible while the carbon use was calculated.  The tax would  pay for the money lost when National Insurance was stopped. 

Why is this idea important?

Gradually bring in a Carbon Tax for every item sold.  This would have to be flexible while the carbon use was calculated.  The tax would  pay for the money lost when National Insurance was stopped. 

National Insurance Contributions

To scrap the 3rd Class Insurance Contributions for Expats working overseas and replace with the 1st class contribution.

I am now 2 years into a five year overseas contract in the Middle East, hence I pay no tax to any country and only 3rd class contributions; 33 sterling, a month. Whereas before, in the UK, I was paying 350 sterling a month.

Yet with only paying 3rd class I still am entitled to the maximum retirement pension and use of my local surgery when on leave. NB My company provides, full medical coverage for myself and family whilst in the Middle East and in the UK

 

Why is this idea important?

To scrap the 3rd Class Insurance Contributions for Expats working overseas and replace with the 1st class contribution.

I am now 2 years into a five year overseas contract in the Middle East, hence I pay no tax to any country and only 3rd class contributions; 33 sterling, a month. Whereas before, in the UK, I was paying 350 sterling a month.

Yet with only paying 3rd class I still am entitled to the maximum retirement pension and use of my local surgery when on leave. NB My company provides, full medical coverage for myself and family whilst in the Middle East and in the UK

 

Free Pensions for Directors

Remove the National Insurance Legislation that allows Directors of companies to set their salary between the two lower National Insurance Limits and pay no National Insurance yet still claim a state pension.

Why is this idea important?

Remove the National Insurance Legislation that allows Directors of companies to set their salary between the two lower National Insurance Limits and pay no National Insurance yet still claim a state pension.

REPLACE NATIONAL INSURANCE WITH SOCIAL SECURITY TAX

The bureaucracy involved in maintaining records on 'contributors' for 40 years or more is expensive and unnecessary – particularly given the level of means testing.  NI has long ceased being an insurance – those who pay in most get the least; Jobseekers Allowance expires after just 13 weeks unless you have no money; should you have a full contribution record you get a 'full' old age pension, however if you don't have a full contribution record and have no savings, your pension is made up by income support which gives access to things like housing benefit and one can be better off than someone who has a full contribution record.

Let's be honest and classify it a TAX rather than a REVENUE RECEIPT.

Why is this idea important?

The bureaucracy involved in maintaining records on 'contributors' for 40 years or more is expensive and unnecessary – particularly given the level of means testing.  NI has long ceased being an insurance – those who pay in most get the least; Jobseekers Allowance expires after just 13 weeks unless you have no money; should you have a full contribution record you get a 'full' old age pension, however if you don't have a full contribution record and have no savings, your pension is made up by income support which gives access to things like housing benefit and one can be better off than someone who has a full contribution record.

Let's be honest and classify it a TAX rather than a REVENUE RECEIPT.

Allow established illegal immigrants a chance to “buy” their citizenship

There are many illegal immigrants who have entered the UK and been living invisibly and working on the black economy because they do not have official documents. I believe there should be an amnesty window, and those who are living underground as it were, could buy their citizenship by paying a very large fine for the illegal entry, which could be spread over some years like the student loan system. As someone with the status of a probationary immigrant, they would be allowed to work legally and contribute to the economy, and also pay a higher tax rate for a while to compensate for the years they could not pay tax, as we have no way of knowing or proving what they earned or how they survived during the time they were invisible.

The probationary citizen period would end when the fine was totally paid off. I would suggest the figure shoudl be around 12-15,000 per person. Once they are working legally, deductions could be made at source at a rate that is deemed managable so they do not suffer hardship, or the fine scheme be too offputting.

Why is this idea important?

There are many illegal immigrants who have entered the UK and been living invisibly and working on the black economy because they do not have official documents. I believe there should be an amnesty window, and those who are living underground as it were, could buy their citizenship by paying a very large fine for the illegal entry, which could be spread over some years like the student loan system. As someone with the status of a probationary immigrant, they would be allowed to work legally and contribute to the economy, and also pay a higher tax rate for a while to compensate for the years they could not pay tax, as we have no way of knowing or proving what they earned or how they survived during the time they were invisible.

The probationary citizen period would end when the fine was totally paid off. I would suggest the figure shoudl be around 12-15,000 per person. Once they are working legally, deductions could be made at source at a rate that is deemed managable so they do not suffer hardship, or the fine scheme be too offputting.

Red tape for small businesses

Small businesses are the life line of this country.  Over 80% of people are employed in small businesses.

Yet we are treated the same as huge businesses in terms of red tape, reporting, tax.  We are over burdened with rules, regulations, forms and tax that bigger businesses have Departments to deal with.  We only have ourselves.

We are now expected by HMRC to not only understand the bewildering and complex rules, but to also to work out ourselves if we get things wrong and then to tell HMRC or else get fined.  We do not know what we do not know!   We should not be fined when the rules are so complex and when we make mistakes. 

My small business has just been hit with a huge reevaluation by the VOA and hit with a huge backdated bill that we have no way of paying, due to no fault of our own.  Why is the VOA allowed to make such huge backdated valuations?  The shop we rent has been the same since we have rented it and we are being penalised.  The VOA should not be allowed to backdate such evaluations.

 

We pay huge rent bills to the Local Authorities, yet if we want any services such as our rubbish collected, we have to pay again.  Small businesses should be able to get some services from Local Authorities as part of their rates and not have to pay twice.

 

There should be recognition by way of lower taxes and national insurance for small business (as oppose to large business) and how they employ local people, and provide just as necessary services as the public sector

Why is this idea important?

Small businesses are the life line of this country.  Over 80% of people are employed in small businesses.

Yet we are treated the same as huge businesses in terms of red tape, reporting, tax.  We are over burdened with rules, regulations, forms and tax that bigger businesses have Departments to deal with.  We only have ourselves.

We are now expected by HMRC to not only understand the bewildering and complex rules, but to also to work out ourselves if we get things wrong and then to tell HMRC or else get fined.  We do not know what we do not know!   We should not be fined when the rules are so complex and when we make mistakes. 

My small business has just been hit with a huge reevaluation by the VOA and hit with a huge backdated bill that we have no way of paying, due to no fault of our own.  Why is the VOA allowed to make such huge backdated valuations?  The shop we rent has been the same since we have rented it and we are being penalised.  The VOA should not be allowed to backdate such evaluations.

 

We pay huge rent bills to the Local Authorities, yet if we want any services such as our rubbish collected, we have to pay again.  Small businesses should be able to get some services from Local Authorities as part of their rates and not have to pay twice.

 

There should be recognition by way of lower taxes and national insurance for small business (as oppose to large business) and how they employ local people, and provide just as necessary services as the public sector

National Insurance IS Income Tax

Assumtions:

!  Generally the simpler a system the better it works and it will cost less to run.

2 Tax levels are intended to be set according to a peoples ability to pay.

3. Tax avoidance, usually working to the benefit of the richest membes of society, is legal and widespread.  

Suggestions:

1. Merge Employee contribution Tax and NI.  This would increase tax collected as the upper earnings level on NI contributions would disappear. It would simplify Payroll Administration for most companies and avoid yearly software rewrites/updates.

2. Use any staff released by implemeting 1 above, on investigating Tax and Benefit issues. Give them a financial Incentive. No results equals low pay.

Why is this idea important?

Assumtions:

!  Generally the simpler a system the better it works and it will cost less to run.

2 Tax levels are intended to be set according to a peoples ability to pay.

3. Tax avoidance, usually working to the benefit of the richest membes of society, is legal and widespread.  

Suggestions:

1. Merge Employee contribution Tax and NI.  This would increase tax collected as the upper earnings level on NI contributions would disappear. It would simplify Payroll Administration for most companies and avoid yearly software rewrites/updates.

2. Use any staff released by implemeting 1 above, on investigating Tax and Benefit issues. Give them a financial Incentive. No results equals low pay.

Merge PAYE and NI into single simple tax

PAYE is a tax with one set of rules. NI is effectively a tax with a different set of rules.

Both are complex. A single tax with a simple set of rules that can be understood by those that are taxed, those that have to collect the the tax (the employers)  and the HMRC staff.

Why is this idea important?

PAYE is a tax with one set of rules. NI is effectively a tax with a different set of rules.

Both are complex. A single tax with a simple set of rules that can be understood by those that are taxed, those that have to collect the the tax (the employers)  and the HMRC staff.

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.

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.