Is this the end of National Insurance?

[vetran]

Care to provide some numbers? I believe OECD did some studies. Not everyone can afford an HQ in Belize (I'm sticking to Cayman Islands for now)

yep they did and their suggestions were ridiculed.

Rights groups reject OECD approach on corporate tax avoidance | Reuters

The cost of incorporating in tax efficient countries and using legal loopholes is a few thousand. If we try to soak the rich companies they will just rearrange their affairs.

Large companies don't pay corporation tax in full they have better lawyers and accountants.

Employers NI is the one tax we get for sure. Except the large companies now avoid employment by only taking on the self employed on zero hours contracts.

[d000hg]

Unless they move to a tax on turnover

Which is ridiculous. For some companies a 1% turnover tax would be a 20% profit tax, to others 2%.

[vetran]

Unless they move to a tax on turnover

which will be manipulated by clever accountants.

They will supply offshore to franchisees. No UK turnover , trebles all round.

You will have to get used to eating Romanian 'Beef' in your <insert fast food chain name here>.

[ASB]

Your permie payslip shows a big number at the top - your monthly salary - then a list of deductions and your take home at the bottom. The difference between those two is 'tax' and even your typical middle-class earner knows that even if they don't really know what NI really is.

It shows all sorts of other deductions too. And doesn't generally show Ers NI as a deduction.

It aint rocket science to work it of course.

Personally I think there should be a box along the lines of "Paid to HMRC" being Ee NI + Er NI + Income Tax + Class 1A NI on things like cars and medical.

Except that is a scary large number compared to a decent gross salary.

[MicrosoftBob]

If they get rid of NI then it’s easier to make the NHS “pay per use” as the logic of I pay insurance for that is no longer valid.

Or am I being paranoid?

Considering the house of lords has been debating the future of the NHS, including the possibility of pay per use it's certainly a possibility

[MicrosoftBob]

Which is ridiculous. For some companies a 1% turnover tax would be a 20% profit tax, to others 2%.

Since when has common sense applied to taxation ?

[d000hg]

It shows all sorts of other deductions too. And doesn't generally show Ers NI as a deduction.

It aint rocket science to work it of course.

Personally I think there should be a box along the lines of "Paid to HMRC" being Ee NI + Er NI + Income Tax + Class 1A NI on things like cars and medical.

Except that is a scary large number compared to a decent gross salary.

Employer's NI isn't relevant - it doesn't come out of the salary you receive.

[VectraMan]

Employer's NI isn't relevant - it doesn't come out of the salary you receive.

It does effectively. The cost vs. benefit decision your employer makes on whether to give you a job has to include Employer's NI, so potentially we could all be paid more if it wasn't for Employer's NI.

[ASB]

Employer's NI isn't relevant - it doesn't come out of the salary you receive.

I know it doesn't. But it is kind of relevant because it is paid as a result of the salary one receives.

[VectraMan]

He's introduced the dividend rates because you can't cut corporation tax where there is a high probability of tax-motivated incorporation (Osborne's words / thinking, not necessarily mine).

Corporation Tax is a silly tax. They should get rid of it and just tax dividends as normal shareholders' income (though you'd have to do something different for overseas shareholders I guess). This would have the advantage of encouraging businesses to build up funds ensuring better stability; investing more, and best of all would put half of the accountancy profession out of work. Win win, unless you're an accountant.