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Tax & NI

Community Veteran
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Registered: 02-08-2007

Tax & NI

There has been some talk about the possible merger of Tax & NI Contributions into a single Tax to make things easier to administer.
Can't see this will make much difference to those who are in work but what about everyone else ? If such a merger took place we would be paying Tax at 30% Plus.
Lets hope the government doe not make the same silly mistake Brown made in abolishing the 10p rate without doing the maths only to discover the poorest people were the ones most effected
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Community Veteran
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Registered: 24-09-2008

Re: Tax & NI

Will hit pensioners (both working and non working) who earn more than £9k+ (cannot remember the exact figure) they are currently not Paying NHI and paying tax at 20 odd %. Merger of Tax and NHI will result in 30% tax
Poorest people (low tax payers) should benifit, assuming they are paying very littleor no tax and 10% NHI, result is still very little tax and zero NHI
itsme
Grafter
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Registered: 07-04-2007

Re: Tax & NI

Have they specified how the employer will pay NI, currently I believe the employee pay 11% and the employer 12.8%. If they keep the current system for employers I can't see any benefit changing it for employees.
Community Veteran
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Re: Tax & NI

I think that this was a report by a Think Tank sent to the Chancellor - I just hope he doesn't take any notice because the complications for those retired or with split income (earned and investment etc.) would be horrible.
It really sounds like something which wasn't thought through
http://www.which.co.uk/news/2011/03/will-income-tax-and-national-insurance-merge-247247/
Community Veteran
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Registered: 02-08-2007

Re: Tax & NI

Thanks for that link which makes it more clear.
Community Veteran
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Registered: 01-08-2007

Re: Tax & NI

Personally from my POV I think its a good idea because it will make pay and tax calculations a lot simpler for the worker to understand.
I just wish they'd do the same with motoring fuel and road tax because road tax is a pain to find all in one go. Stick 5p on each litre and just have done with it.
I need a new signature... i'm bored of the old one!
tinto
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Registered: 21-11-2010

Re: Tax & NI

@ Ok
Drivers using vehicles leased from Motability, those entitled to Disability living Allowance and using personally owned vehicles, and certain disabled ex Service personnel, are all exempt from paying Road Tax, in recognition of the extra costs their illness/disability incurs, coupled with its effect on their earning ability.  Factor in the varying levels of Road Tax that there are now, and simply adding xp. on a litre of fuel and labeling it as Road Tax replacement is just not feasible any more
Community Veteran
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Re: Tax & NI

But neither is finding £100 lump sum when the tax runs out when the government is forcing people into poverty. Thats the point.
If you combine road tax with fuel duty at least you don't have to find a lump sum every 6/12 months.
I need a new signature... i'm bored of the old one!
nadger
Rising Star
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Registered: 13-04-2007

Re: Tax & NI

When I was doing 60,000 miles per year I'd have disagreed with you but now I only do under 3,000 miles I'd agree  Wink
jmd
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Re: Tax & NI

I have a little car so my road tax is £30 per year!
Community Veteran
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Re: Tax & NI

Quote from: nadger
When I was doing 60,000 miles per year I'd have disagreed with you but now I only do under 3,000 miles I'd agree  Wink

Yep I can see your thinking but then surely you must also admit that you were causing more wear and tear on the road than someone like me who was doing 13,000.
I need a new signature... i'm bored of the old one!
nadger
Rising Star
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Registered: 13-04-2007

Re: Tax & NI

I zeroed my 2nd trip on Jan 1st and have, to date, clocked 55 miles this year  Roll eyes
I dread to think what my cost per mile has been, so far, this year  Cry
itsme
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Re: Tax & NI

Quote from: okrzynska
Yep I can see your thinking but then surely you must also admit that you were causing more wear and tear on the road than someone like me who was doing 13,000.

What wear and tear do cars do to roads? I would say very little most is down to roadworks to put in services therefore weakening the surface which allow the elements to breakup the tarmac up. As witness this winter by the number of potholes.
Community Veteran
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Re: Tax & NI

Quote from: itsme
What wear and tear do cars do to roads?

Very little indeed compared to heavier vehicles.
I think the rubbish truck coming down our road once a week does more damage than all the cars in that time.
And, as noted, it's largely poor repairs after utilities dig up the surface that cause most failures that I see.  Angry
Community Veteran
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Registered: 01-08-2007

Re: Tax & NI

Ok, maybe that was the wrong way of me to describe it but the bottom line is that those who use the roads the most should contribute the most. I know that would be unpopular with those who commute or do a lot of mileage in their work but its fair. What isn't fair is to expect those who do few miles to pay the same as those who are on the road most of their iives.
I need a new signature... i'm bored of the old one!