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Health and social care tax

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    Health and social care tax

    Announcement now.

    From The Guardian:

    Johnson confirms new 1.25% health and social care levy being introduced


    Johnson says the government will put more money into the NHS. But it will also fix the long-term problems of social care.
    And it would be wrong to say the government can pay for this without explaining how it can fund this, he says.
    He says from next April there will be a new 1.25% health and social care levy, hypothecated by law.
    It will not pay for pay awards for middle management. It will go straight to the frontline, he says.

    "You’re just a bad memory who doesn’t know when to go away" JR

    #2
    Johnson says highest earning 14% will pay around half the total revenue from new levy


    Johnson says people want to know why income tax is not being increased instead.
    But it is not paid by business, he says. So if income tax were increased, it would be double the rate.
    And capital gains tax in total raises less than the sum this new levy will raise, he says.
    Johnson says the highest earning 14% will pay around half the revenue from the levy.

    "You’re just a bad memory who doesn’t know when to go away" JR

    Comment


      #3
      Including all NICs and dividends too, details tbc. Probably 2.5% for dividends.

      Comment


        #4
        https://www.theguardian.com/politics...nd-social-care

        Boris Johnson has confirmed his government will impose a manifesto-busting £12bn-a-year package of tax increases from next April to tackle NHS Covid backlogs and overhaul social care.

        The cabinet signed up on Tuesday morning to a controversial 1.25 percentage point increase in national insurance contributions, which will be levied on both employers and employees.

        Tax on share dividends will also be increased by 1.25 percentage points, in a move expected to raise £600m.

        Much of the revenue will initially be devoted to cutting waiting lists in the NHS, with social care receiving just £5.3bn of the £36bn expected to be raised over the next three years.

        From 2023-24, once HM Revenue’s computer systems have been updated, the NICs increase will be rebadged as a health and social care levy, which will appear as a separate line on payslips.

        It will be extended at that point to cover pensioners who are still in work, and the proceeds hypothecated – put into a separate pot by law.

        Over time, a growing proportion of the revenue raised will go to social care, allowing the government to implement a new cap on total care costs, so that no individual will have to pay more than £86,000 over their lifetime.

        Anyone with under £100,000 in savings will receive some state help under the new system – with care completely funded by the state for those with less than £20,000.

        The health secretary, Sajid Javid, is expected to set out more details of how the money will be spent in the NHS and social care systems, which the government says will become more closely integrated.

        The money is intended to fund 9m more procedures in the NHS, and allow the health service to operate at 110% of planned activity levels by 2023-24 in a bid to tackle the historic backlog of cases after the Covid crisis.

        The decision to break an explicit manifesto promise has sparked a backlash among Tory MPs, while Labour has pointed out the impact of NIC increases will be borne by younger, low income workers.

        But Johnson believes voters will accept the tax increase because of the backdrop of the pandemic.

        The government was keen to stress that the national insurance increase was progressive, hitting higher earners harder, and with more than 6m of the lowest earners exempt.
        "You’re just a bad memory who doesn’t know when to go away" JR

        Comment


          #5
          Also it appears to be on both Employer and Employee sides of the NI equation.

          That's a hell of an increase.
          merely at clientco for the entertainment

          Comment


            #6
            Originally posted by eek View Post
            Also it appears to be on both Employer and Employee sides of the NI equation.

            That's a hell of an increase.
            Yep, massive. Also on the 2% surcharge, I assume, which will increase to 3.25% - at least, I don't see how you get to those other figures without this.

            Comment


              #7
              Originally posted by eek View Post
              Also it appears to be on both Employer and Employee sides of the NI equation.

              That's a hell of an increase.
              Rename it and it's a new tax
              "You’re just a bad memory who doesn’t know when to go away" JR

              Comment


                #8
                I can't wait for the Climate Change levy on all earnings. But who doesn't want to pay more tax to save the planet from destruction over the next few months?
                I design idiot proof software. Trouble is, they keep making better idiots.

                Comment


                  #9
                  https://www.bbc.co.uk/news/uk-56125462

                  The public had a right to know where the "vast" amounts spent had gone and how contracts were awarded, he added.



                  The government said it fully recognised the "importance of transparency".

                  It's transparent these criminals have stolen £100blns into offshore funds and now someone (that's you an me) have to put the money back.

                  I design idiot proof software. Trouble is, they keep making better idiots.

                  Comment


                    #10
                    Here it is in black and white. So only 1.25% for dividends, not 2.5% to mirror both NICs.

                    https://assets.publishing.service.go...ocial_Care.pdf

                    Comment

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