The really rich don't pay inheritance tax

on the VAT presumably

From a high rate of VAT biwi. Hmrc costs absolutely grillions to administer, it is archaic and inefficient.

I would prefer a flat rate of income tax and no other taxes at all. The administration costs are too high to sustain as are the state employment of 52% of the population. It's all about the math!

No income tax and no NI. And where would the government get the money to run the country?! Where would the money be to pay our pensions and child benefit? Just to give a coupld of examples ...

A flat rate of perhaps 30% for income tax would likely bring in more.

Someone earning millions loses a bigger chunk in tax on income at present. They'd only pay VAT on things they buy, services they use, but nothing other than stamp duty on purchasing property, so could build up a portfolio, put those properties into a trust fund to pay out for care homes and their children, and the VAT aspect would be avoided.

It might be easy to collect, but the range of complex taxes with capital gains, etc, and then various reliefs such as for pension contributions, is what makes some of the avoidance so easy.

If there was a significant reduction in the range of taxes, I bet the multi-million pound end could be better targetted so they cannot avoid paying. Doing it via VAT might have some chances of working, but I still have many doubts.

But losing income tax and ni would be fantastic!

VAT at 30% ?

Wow, that'd be a winner with the electorate, I don't think!

20% would make it easy to calculate in your head, without quite as much encouragement as 30% for trying to avoid it.

It's bad enough when you see some item online in the USA for $100 and then, despite the exchange rate, the UK price is 100 pounds. If there was VAT at 30% they'd use VAT as an even greater excuse for it being 110 pounds!

(remember iTunes USA was charging 99c and originally in Europe felt 99p was "OK"... even now, I think EU members pay 0.69 Euro, ie about 55 to 65p, but the UK price is 79p isn't it? I don't touch iTunes {no iPod or similar} but given the artists get less than 15c from the US 99c price, felt a lot of this was profiteering, and different currencies make it far easier)

I'm all for a flat tax, it would work beautifully and cut the bureaucracy hugely which would cut costs to the country.

Another great idea would be to abolish income tax and national insurance which would negate the need for HMRC which cost us billions and billions to run and they screw up more often than not and get confused by their own rules.

Then we could just have VAT at 30% which is easily collected as the business owners do that themselves.

My husband thinks taht the best way to change the tax system is to make it simpler.

Rich people usually end up paying less tax as they have lots of investment allowances that they can use. Apparenly Labour have DOUBLED the size of the UK tax law in the time they have been in power.

Have you heard of flat tax..? Everyone has a simple allowance of say £7k then everything else is paid at a single flat rate of say 20%.

No further allowances, no further taxes a very very simple ssytem with nowere for the rich to hide. You make money you pay tax...

People like Phillip green and bernie ecclestone who are worth billions may next to nothing in tax. A simple flat tax would ensure that these people are screwed for all they should pay !!!

Also, if you have over your dosh and die within 7 years, your loved ones still have to pay the inheritance tax.

You can set up trust funds which in effect is handing over your money to those you want to have it and you have limited control over it and can't have it back. If you set up a trust for your children's education for example, then you can never dip into that money. It will be cared for by executors and used for the sole purpose you specified.

I always felt inheritance tax was a cruel thing. Why should someone work hard and save something to pass on to a loved one, just to have it swallowed up by the Government. The earned cash has already paid tax a few times over!!!

If you are very wealthy you can afford to plan your inheritance. You can set up family trusts years in advance.

Middle class people, whose wealth is probably mainly a house they bought long ago and has risen enormously in value, are less able to do this, as it means changing the ownership of their home. It can be costly and fraught with problems.

If you have several millions or more to leave, you are able to cover yourself adequately. If you just have one house which happens to be in an expensive part of the country it's not so easy.

But if you are the owner of an asset worth £750,000 you are hardly the poorest of the poor, are you?