Anyone see the adverts in the newspapers this weekend about something called the 20:20 tax plan?
Here is the basic gist
An open letter to George Osborne has been placed in the Mail on Sunday by Lord Anthony Jacobs and Richard Teather about their plans for tax - main points are:
10 million taken out of tax altogether
Personal tax free allowances risen immediately from £6035 to £7 500 taking 23.8 out of tax and increased to £15000 within 3 years taking 7.2 million out of tax
Employees National Insurance abolished but Employers NI increased from 12.8% to 20% over 6 years at rate of 1.2% a year (Europe average 25.4%)
Single rate of income tax at 20%
Pensions received tax free but no tax relief
VAT to be increased to 20% - Zero and reduced rates unchanged.
Tax credits increased by 1.7 billion to protect worse off
Corporation Tax reduced from 28% to 20%
Capital Gains Tax up to 20%
Inheritance Tax will be abolished but CGT of 20% substituted with primary home exempt
Apparently this requires no cuts in public spending or government borrowing
Results:
Person earning £10000 a year - immediate increase of £15 pw and in 3 years £28pw (22% increase)
£26,000 a year - increase of £39 a week and £71 in 3 years (21% increase)
42,000 - £56 a week and then £88pw (19% increase)
60 a year - £103 a week increasing to £136 a week in 3 years (equivalent to 20% gross wage increase)
Some interesting thoughts, my first is that it would make more sense to go full PAYE on this?
Here is the basic gist
An open letter to George Osborne has been placed in the Mail on Sunday by Lord Anthony Jacobs and Richard Teather about their plans for tax - main points are:
10 million taken out of tax altogether
Personal tax free allowances risen immediately from £6035 to £7 500 taking 23.8 out of tax and increased to £15000 within 3 years taking 7.2 million out of tax
Employees National Insurance abolished but Employers NI increased from 12.8% to 20% over 6 years at rate of 1.2% a year (Europe average 25.4%)
Single rate of income tax at 20%
Pensions received tax free but no tax relief
VAT to be increased to 20% - Zero and reduced rates unchanged.
Tax credits increased by 1.7 billion to protect worse off
Corporation Tax reduced from 28% to 20%
Capital Gains Tax up to 20%
Inheritance Tax will be abolished but CGT of 20% substituted with primary home exempt
Apparently this requires no cuts in public spending or government borrowing
Results:
Person earning £10000 a year - immediate increase of £15 pw and in 3 years £28pw (22% increase)
£26,000 a year - increase of £39 a week and £71 in 3 years (21% increase)
42,000 - £56 a week and then £88pw (19% increase)
60 a year - £103 a week increasing to £136 a week in 3 years (equivalent to 20% gross wage increase)
Some interesting thoughts, my first is that it would make more sense to go full PAYE on this?
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