The Big NIC U turn

[AtW]

The Tories cannot increase taxes until the next parliament as it will breach a manifesto promise.

Errr? They can and they will - just not the ones they mentioned in manifesto: income tax, NICs. They can also rework the whole system, that would not be the same as simply "increasing" the taxes, would it?

[LondonManc]

Every contractor has something to worry about if many clients adopt a blanket inside approach. You can work any way you want, bring in substitutes as often as you want, be as "real" as you want - but if the clients are taking an approach that they will only deal with you if they treat you as an employee then you have plenty to worry about.

If they've let you substitute and work how you want, they're treating you as a contractor. Not sure you're providing the best example.

HMRC will have their hands full of low-hanging PS fruit for the next few years, including retrograbs.

[AtW]

Apparently May has stated that she has "every full confidence" in the Chancellor. So that's him out. Any bets on who she'll dump the job on next?

Boris hopefully, he promised to bring income tax back to 40% and he is very good with breaking promises.

[AtW]

1) Abolish Employee NICs
2) But retain Employer NICs for employed people.
3) Increase income tax rates in line with what Employee NICs were
4) This way, everyone - employee, self employed, etc, pays the same tax rate
5) Increase personal allowance for old people to compensate them (as they don't pay Employee NICs)
6) Reclassify dividends from close companies so that it would come under regular income tax. Corporation Tax relief on dividends for said close companies. Dividend tax rates for non-close companies (and no CT relief) to remain differentiated. And I mean close companies rather than PSCs.

All "NICs" should be rolled into one paid by the person who gets income (not the company that provided income in the first place) - people MUST know the true level of taxation on what they earn. And for that reason it will never happen. If anything both parties are making system even more complicated - NICs #3 by the backdoor (so called auto-enrollment), now probate fees are charged on the basis of estate size, effectively Inheritance Tax #2

[jamesbrown]

Errr? They can and they will - just not the ones they mentioned in manifesto: income tax, NICs. They can also rework the whole system, that would not be the same as simply "increasing" the taxes, would it?

They can, but I wouldn't necessarily rule out a GE, depending on what happens with the A50 negotiation in the next 6 months. In that case, you can expect changes to tax bands/rates, as well as changes to the number of people paying them (i.e. "false self employment").

[AtW]

They can, but I wouldn't necessarily rule out a GE, depending on what happens with the A50 negotiation in the next 6 months. In that case, you can expect changes to tax bands/rates, as well as changes to the number of people paying them (i.e. "false self employment").

A50 negotiation won't go anywhere in next 6 months, I am pretty certain Korbin would not agree to GE and May would prefer to stall and blame EU for everything in 2019 when she finally might force GE.

[northernladyuk]

A50 negotiation won't go anywhere in next 6 months, I am pretty certain Korbin would not agree to GE and May would prefer to stall and blame EU for everything in 2019 when she finally might force GE.

Corbyn does not need to agree to an election.

[jamesbrown]

A50 negotiation won't go anywhere in next 6 months, I am pretty certain Korbin would not agree to GE and May would prefer to stall and blame EU for everything in 2019 when she finally might force GE.

That's the point. The direction of travel on A50 is going to reach a conclusion (insurmountable roadblock or continuation) sooner than people expect, I think - perhaps shortly after the German elections. Is the Council or the Commission going to win in their approach and how does the Parliament interfere? Everyone is expecting an 18 mo - 2yr process, but I'm skeptical TBH. It will either be an 18mo to 2yr process or it will end much more quickly, implying a GE in the UK. Also, it's easy to repeal the FTP Act.

[SueEllen]

Corbyn does not need to agree to an election.

2/3 of MPs must agree to an election. And the Tory majority is a small one...

[northernladyuk]

That's the point. The direction of travel on A50 is going to reach a conclusion (insurmountable roadblock or continuation) sooner than people expect, I think - perhaps shortly after the German elections. Is the Council or the Commission going to win in their approach and how does the Parliament interfere? Everyone is expecting an 18 mo - 2yr process, but I'm skeptical TBH. It will either be an 18mo to 2yr process or it will end much more quickly, implying a GE in the UK. Also, it's easy to repeal the FTP Act.

Exactly.

Mind you it's equally easy for parliament to repeal or amend the European Union (Notification of Withdrawal) Act 2017. That would be fun.