AIBU to expect those on benefits to pay tax on their benefits?

[DistinguishedSocialCommentator]

Hi

Reading a thread on MN, I noted a FM stating that a financial org a well respected one cited that the tax system in England should be fair and "balanced" tax system, and their meaning of "balance" is different to mine

IMO, a "balanced" tax system is where those on benefits inc Housing benefit, should pay taxes if they are getting over the nations/England's tax free allowance that most working people get, IE £12,570 a year 2023/2024

Some on benefits, even though benefits have been so-called capped - are still getting a lot, lot more than those in work. Most working people also have travelling costs and in London that can easily equate to a hundred pounds a week

AIBU to tell the lame government to tax those on benefits that are getting more than the tax allowance of £12,570 - Inc in benefits the cash payments via bank, the Housing benefits, and the reductions they get in council tax.

IMO, it is only fair to those that are working many hours a week often 40/50 hours and two hours of traveling time and in london many paying around a hundred quid in travel costs and having to endure nasty managers and co-workers and abuse as they travel to and back from work

IMO, the above would indeed be a "balanced" tax regime and possibly encourage some back to work

NB: Feel free to agree or disagree but rest assured I will ignore nasty, rude posts. There are millions on benefits and IMO my proposal needs to be considered . It could be my proposal is fundamentally flawed and or needs tweaks - therefore, helpful comments will be fully considered

But that would be the government taking its own money back? Benefits amounts are based on set calculations like how much the government thinks one person needs to live on, LHA rent amounts, childcare allowances etc. they'd have to increase the amount given to allow for the tax. It would create more admin for no good reason.

Do you realise most people are on UC because they need it?

I work two jobs around school hours and would not survive without UC. I pay tax on my two jobs FYI

I mean… taxing benefits is just extra administration, isn’t it?

Presumably the benefit value is calculated using some rationale about how much is needed, and if the government taxed this sum, it would just need to be higher upfront to accommodate it…?

This additional administration costs more money.

Income over the tax threshold should pay tax regardless

Obviously not. Just no.

They are taxable, unless the specific benefits are non-taxable due to purpose of that benefit.

https://community.hmrc.gov.uk/customerforums/pt/c5ccb66c-afd3-ed11-9ac4-00155d9771aa

https://www.litrg.org.uk/tax-nic/how-tax-collected/tax-state-benefits#:~:text=You%20need%20to%20be%20careful,based%20on%20your%20financial%20situation).

Some benefits are taxable. Carer's allowance, for example.

So do people in receipt of benefits get free travel to and from work? Do they also exist in some weird time warp where their working hours don’t count?

A bit pointless really. Benefits are paid from taxes, taxing them would just mean you'd have to increase the benefits to make up the shortfall, and the administration would cost money so basically the recipients would end up with the same amount of money but it would cost more to do. Though you could bring in a private company to administer said benefits and thereby get more tax payers money into rich people's pockets. Perhaps you should suggest it to the current government, they seem to be running out of ideas.

Why is statutory maternity leave pay taxed but benefits are not?

Lots of benefits are taxed, bereavement allowance, ESA, JSA, carers allowance, state pension, incapacity benefit.

Rishi, is that you? 😂

Interesting that you mentioned London. Shame you fail to realise that's its likely a lot of working people in Ldn are claiming benefits and working full time!

Make it make sense OP.

Well they will be paying VAT if they use it to buy some things.

'Lots of benefits are taxed, bereavement allowance, ESA, JSA, carers allowance, state pension, incapacity benefit.'

How do they decide what benefits should be taxed?

Sometimes you see a thread title, your heart sinks and you just KNOW before you even open it who the OP is going to be.

Yeah. That.

And YABVVVVVU as usual.

Might have known it would be you 🤣 not happening.

Not when you think about it

Some people chose the easy lifestyle and I dont blame them as the govenemnt allows this

Those that work full time should never be worse off than those on benefits - taking full time working into account plus average travelling costs

Like I said, travelling costs in london for many can easily reach or eceeed a hurndered quid a week

Oh. I only just twigged who the OP is🙄

Are you talking about any specific benefits? Because the word benefit covers a huge range.

Hopefully you’re already aware that…

Many people in receipt of benefits work - yes including those spending hours travelling round London.

Many benefits are taxable.

Tax isn’t only paid on income, things like VAT are paid by everyone.

Any benefit that isn’t taxed is presumably allocated on the basis of need. Why would you decide someone needs £100 and then take £20 off them? Or would you have to give them £120 so you could take the £20 and let them have what they need.

Personally I'd tax the bejasus out of anyone misusing the 'underline' function but maybe that's just me.

Because my severely disabled sister is in receipt of the highest care, housing, pip benefits - she cannot work. She can’t even feed herself. Should she be taxed?

This I would vote for