 Estimates of changes to tax rate can be found at http://www.hmrc.gov.uk/stats/tax_expenditures/table1-6.pdf Corporation TaxReview of global competitiveness of trading within UK, including looking at the Main Rate of Corporation tax and Small companies Corporation TaxValue Added TaxThe standard VAT rate increased to 20% and review of scope, including healthcare and hygiene productsSales TaxIntroduction of a Sales Tax @ 0.5% on all sales and financial transactionsInheritance TaxSuccessful people and families already pay a large amount of tax and duty during their lifetimes, and to tax again when they pass away is unjust. Therefore, Inheritance Tax and other Death Duties abolishedComments by Adam Smith Institute: http://www.adamsmith.org/blog/tax-and-economy/we-should-scrap-inheritance-tax-/ Stamp Duty on Property PurchasesStamp Duty increased to 4% and applied only to the marginal price of a house, with a £125,000 allowance, excluding first time buyersNational InsuranceNational Insurance is a tax in all but name, with a cap for higher earnersRemoving the current cap on earnings that attract National Insurance would raise an additional £11 BILLION - see http://www.theyworkforyou.com/wrans/?id=2010-02-22c.315723.h The ideas of the current government are comprehensively seen as a "tax on employment" and should be stopped see http://www.egovmonitor.com/node/35381 Articles related to National Insurance changes:
Employment TaxEmployers National Insurance will be replaced by Employment Tax at a standard rate of 12% on all earnings above LTT, ring fenced for use by Business, Education & Corporate Governance, Benefits & Social Cohesion and Health & Social Care VRDsSocial TaxEmployees National Insurance will become Social Tax at a standard rate of 8% on all earnings, ring fenced for use by Benefits & Social Cohesion, Health & Social Care VRDsEducation Funding TaxUniversity course fees abolished, paid for by extra 1% Education Funding Tax on earnings above Lower Tax Threshold (LTT)
Income TaxMembers of ParliamentMP’s lose any special treatment and included into the general Income Tax schemes with all current expense and allowance schemes comprehensively reviewedRelevant bills etc Tax CreditsAll current tax credit systems be transferred to Benefits & Social Cohesion VRD and subsequently abolished or absorbed into existing benefits systemIndividual & Household Tax AllowancesAllow couples to file joint tax returns to enable pooling of tax allowancesIntroduction of Individual and Household (community) tax brackets, with Income Tax Allowance based on 35% of Average Wages Definitions: TA = Tax Allowance, LTT = Lower Tax Threshold, UTT = Upper Tax Threshold, HTE = Higher Tax Earner
Higher Tax Earner’s attract a extra Local Tax rate above UTT going to local authority This equates to earnings between Lower Tax Threshold (LTT) and Upper Tax Threshold (UTT) at 38% and above Upper Tax Threshold (UTT) at 43% or a maximum of 45% Tax, which includes Local Tax @ 2% Council Tax & Local TaxIndividual Council TaxA principle of the change would be to assign a tax charge to every eligible adult (the Individual Council Tax), with an additional household chargeDefinitions: CT = Community Tax, HTA = Household Tax Allowance, ICT = Individual Council Tax, HTE = Higher Tax Earner ICT: £120 per Eligible Adult, per year CT: based on total income of household and band of property value
For Higher Tax Earners, the rate will be 250% + Local Tax Rate (2%), irrespective of property value Relevant bills etc: John Mann - Local Government Finance (Amendment) Bill 2010-11 Local TaxPayable by Higher Tax Earners to local government unit at 2% of earnings above Upper Tax Threshold (UTT)Household Tax AllowanceHousing Benefit, Council Tax Benefit and Council Tax Rebate replaced with Household Tax AllowanceThe Household Tax Allowance (HTA) will provide relief for lower income households Rate1: up to £6000 100% Rate2: next £4000 80% Rate3: next £4000 70% Household income consists of ALL benefits and income to the home Recreational Drugs (including cigarette and alcohol) Duty
|