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Tax Increases after Corona

134 replies

lemongrassmartini2021 · 17/05/2020 13:06

Anyone have any ideas what tax changes we might see post Corona. Increase in income tax? Inheritance tax? VAT? Corporation tax? Stamp Duty?

Obviously no one knows until there is a budget announcement but just wondered what people thought.

OP posts:
Viviennemary · 17/05/2020 21:07

Vat on luxury goods would be a good idea. Increase basic rates of tax but increase the personal allowance to say £15k at the very least. Increase the higher rate of tax. Freeze MPs pay and teachers pay. Give NHS workers a good increase.

ripples101 · 17/05/2020 21:08

I’ll ask again, what is 94 out of 1000 as a percentage?

Answer it.

Alsohuman · 17/05/2020 21:08

*NIC is taken before tax

No it's not*

Yes it is.

user1497207191 · 17/05/2020 21:09

Vat on luxury goods would be a good idea.

There is VAT on most "luxury" goods such as furniture, cars, etc. What "luxury" items do you think are zero rated?

Viviennemary · 17/05/2020 21:14

Sorry. I meant increase VAT on luxury goods.

zoemum2006 · 17/05/2020 21:15

They better stay well away from small business corporation tax given that limited company directors were more or less excluded from any support.

silentpool · 17/05/2020 21:15

To raise taxes, they have to address the cost of housing. My rent (in London) is already 60% of my take home pay. With Tube fares going up, council tax to rise, income tax to rise, I will have very little left to live on. Remember, salaries won't be going up!

DGRossetti · 17/05/2020 21:27

Maybe it's just me, but I think any tax which exceeds 49% is too much.

I can remember when income tax was 33%.

And there is a trade off between ease of collection and fairness.

MummyPop00 · 17/05/2020 21:59

Look at the birth rate after the two post war baby booms. It wasn’t maintained. Then on top of that, we are keeping people alive for something like 13 years longer since the formation of the NHS in 1948.

There is your problem.

MummyPop00 · 17/05/2020 22:01

Apols, in answer to @LilacTree1 Smile

Viviennemary · 17/05/2020 22:26

Perhaps there will be a mass exodus from London if more people work from home.

Iwantacookie · 17/05/2020 22:39

Freeze mps pay for a couple of years. Simple but effective solution.

strugglingwithdeciding · 17/05/2020 23:28

Why do these threads always turn on pensioners ( I'm not one ) but if someone is living a nice life as a pensioner and they have worked for it why more
My Nan has 2 little private pensions and her state so it takes her over tax threshold so she still pays tax
She's not well off she's survives as she doesn't have a mortgage as sold her 3 bed house for a flat, she's not destitute either just comftable
Paying this back should be responsibility of all of us , it's not an us or them

strugglingwithdeciding · 17/05/2020 23:34

@rosehip10 because these pensioner have paid there tax and ni already and they will be paying tax on it again , they didn't get there occupational pensions for free they would of sacrificed salary for it ,
Moat aren't rich and even some who live in expensive properties aren't cash rich , you expect one group to pay totally unrealistic and yes it is ageist as well , we all will have to get the country back on its feet and all possibly take a hit somewhere

underneaththeash · 17/05/2020 23:36

Yep they're going to be huge.

KenDodd · 17/05/2020 23:51

Well the Gov could stop facilitating tax avoidance for a start. I'm sure they won't though, the cost of this, I expect, will fall on the backs of young and the poor again.

www.independent.co.uk/news/business/news/uk-corporate-tax-avoidance-havens-justice-network-dodging-a8933661.html?__twitter_impression=true&fbclid=IwAR01bOv1KY8TlQaPJYuSOPovXo5SEuxRJfa2oOELIwIUwU82zwxJfu3H0Mg

KenDodd · 17/05/2020 23:57

I would change inheritance taxes and treat it just as income, in that the recipient just pays tax on any money they receive as if they'd earned it.

Another suggestion I heard for funding care homes was a 1% death tax on everyone over retirement age who dies, whether they had social care or not. So no payment up front. I thought that was a good idea.

TrainspottingWelsh · 18/05/2020 00:12

We shouldn't all be taking an equal hit, those that can afford it best should be taking it. It isn't fair to expect those earning just above average, let alone below, to tighten their belts further. The fact is pensioners, higher earners, and those with assets/ savings are in a far better position to do so. And I accept that as a family with the latter two it's fair to protect those already struggling. I don't accept it's fair to do so to also protect the income and assets of a wealthier older generation.

Take the £13k example above for one pensioner, statistically more likely to be mortgage free or at least in affordable housing and have some savings too. It's certainly far from wealth and I'm not suggesting that's the group that should be hit. But by the same token, if we expect someone with 13k take home pay, with commuting costs, expensive housing costs, no free public transport etc and possibly a child to support as well, to cheerfully cough up more tax, knowing full well £13k pension is something they'll never see, then it's perfectly justifiable to expect the pensioner to take a cut.

Really, we shouldn't be looking at lower incomes at all. I would however be in favour of dropping marriage tax allowances, and in fact doubling the tax and ni for couples with one earner.

I would also ban most zero hour contracts and increase nmw as soon as the economy could take it. It would be a big saving, and easier than chasing tax dodges, if employers paid employees themselves, rather than relying on the state to top up low wages and precarious employment.

LilacTree1 · 18/05/2020 00:12

Robin Hood tax?

www.robinhoodtax.org.uk/

Doesn’t seem like a Conservative govt but neither does the current Conservative government....

DdraigGoch · 18/05/2020 00:13

NICs have already been paid on the income earned to create the pensions

Tax has already been paid etc etc
No they haven't. Pension contributions are deducted before tax. You pay income tax when you finally draw your pension but that money never has NICs deducted. That should change, if you receive very little you won't notice it anyway due to the Lower Earning Limit. Likewise the 2.5% collar on the SP was only ever a temporary measure, that should go (it hasn't actually been used recently anyway due to higher inflation).

I wonder if whoever was suggesting whacking corporation tax up ten points is aware that despite cuts to the rate over the last ten years, the government's income from CT has never been higher by any measure.

I would actually cut stamp duty on house sales. The 12% higher rate is dissuading people from downsizing when their children fledge which adds to the housing shortage.

I would create a class of "dwelling not a primary residence" to get some income from the investment properties in London and second homes elsewhere, especially those who pretend they are businesses (advertising as holiday lets but never taking bookings from the general public) to avoid council tax.

It's high time that aviation fuel got taxed.

I wonder if we could levy some kind of import tariff based on the environmental cost of the goods production.

The tax code does need simplifying, it has trebled in size since 1997. A complex tax system creates many loopholes for clever accountants to exploit and also has a large administrative cost.

BentBastard · 18/05/2020 00:22

"doubling the tax and ni for couples with one earner."

Think I must have misunderstood your meaning here. A couple both earning already pay less tax than a couple where just one of them brings in the same amount, so why would you tax the single earner even higher, let alone double?

I genuinely don't understand your logic of such punitive taxation where there's a single earner in a couple?

TrainspottingWelsh · 18/05/2020 00:52

Bent I'm thinking of similar salaries where a couple with a sole earner only contribute the same as a couple as a single person. And half that of a couple where both work.

So for arguments sake Kate earns £y salary and £x is taken as tax and ni, and as a society we judge this to be a fair contribution. Lucy and James also both earn £y salary each, so it's fair that they should contribute £x each. But if John earns £y and Cathy doesn't work we deem £x to be a fair contribution for both of them. Despite the fact they'll all expect the same access to tax payer funded resources. Supporting an adult capable of working should also include the obligation to support their contributions.

I probably should have clarified that's only when it's a choice, not if Cathy genuinely can't work or is actively job hunting.

DreamChaser23 · 18/05/2020 01:31

Things will increase but when is the question?

Also, can we afford increased costs? Things such as council tax is high enough and many are unable to afford/just manage. Increasing it will lead to more problems many more unpaid full bills as salaries won't go up for time in fact they will decrease (working reduced salary 80 percent or under could be a new norm for many for a couple of years to come.)

Nikhedonia · 18/05/2020 01:47

trainspotting

A couple with a combined income of £60,000 (earning £30,000 each) pay less tax than one person who earns £60,000. The person earning £60,000 would also have no entitlement to child benefit.

Tax Increases after Corona
Tax Increases after Corona
JoyceTempleSavage · 18/05/2020 05:47

NICs have already been paid on the income earned to create the pensions

Tax has already been paid etc etc

No they haven't. Pension contributions are deducted before tax. You pay income tax when you finally draw your pension but that money never has NICs deducted

I said that tax was paid on the income earned to create the pensions - not that pension contributions were paid on taxed Income. I’m fully aware that pension contributions receive tax relief but salaries supporting the level of these contributions or entitlement to benefits obviously aren’t.