Tag: Budget2024 - Tax Policy Associates

Posts tagged "Budget2024"

Nov 24, 2024 Policy

How to stop IHT avoidance but protect farmers

New data suggests that one third of the farm estates affected by the Budget changes aren’t owned by farmers – they’re held by investors for tax planning purposes. This suggests the Budget proposal doesn’t go far enough to stop avoidance, but goes too far in how it applies to actual farms. There’s a better approach […]

Nov 21, 2024 Analysis

The Budget – a missed opportunity

Despite the Government’s stated commitment to growth, the Budget included no pro-growth tax reform, and its largest revenue raising measure is likely to reduce private sector employment and wages. The Budget continued a sad trend of tax policy driven by realpolitik rather than long term strategic thinking. It’s to be hoped we see something more […]

The Observer
Tax

Michael Savage and
Raphael Boyd

Sat 26 Ocl 2024 16.00 BST

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Thousands are fined by HMRC even
though they don't owe any UK tax

Campaigners call for reform after more than 83,000 low
earners are hit by HMRC penalties

IM Re
ve;
Custo mate

HM Revenue
& Customs

i There are concerns about the extent ta which people who are vulnerable or facing financial
hardship are being issued with the penalties for failing to submit a self-assessment tax form on
time. Photocraoh: Ascannin/Alamy

Oct 29, 2024 Policy

How to reform HMRC penalties for people on low incomes

Between 2018 and 2022, almost 660,000 people on low incomes received a penalty for not filing a tax return on time. Very few of them earned enough to pay any tax. But, by failing to submit a tax return, they were fined at least £100, and often thousands of pounds. For most of those affected, the penalty represents more than half their weekly income. This report illustrates the scale of the problem. 45% of all HMRC late filing penalties were charged to people on low incomes, most of whom actually owed no tax. We believe the law and HMRC practice should change, and we make three key recommendations.

Oct 26, 2024 Policy

The public’s surprising choice of tax increase, and why we should ignore it

Gabriel Milland of Portland Communications has published polling conducted by the Portland research team in early October. Gabriel takes some interesting political conclusions from the polling (and I’d recommend his article). However, my focus is what the polling says about tax policy, and about polling on tax policy. Amended to include the answers – apologies […]

Oct 18, 2024 Policy

The tax longlist – 35 ways Rachel Reeves could raise £22bn

Rachel Reeves has said there is a £22bn “black hole” in the public finances, and that she’ll have to raise tax to fill it. Labour are heavily constrained by their pre-election promises, and that makes raising £22bn a challenging endeavour. But certainly not impossible. This is an updated version of my August article. I’ve previously […]

Oct 18, 2024 Policy

How to reform property tax

Property taxes are probably more in need of reform than any other area of UK tax. We have three taxes on property: stamp duty (SDLT), council tax and business rates. They’re bad taxes: they’re unpopular, inequitable, and they hold back growth. There is a way to change this, and tax land in a way that […]

Oct 17, 2024 Policy

How to reform income tax: end the high marginal rate scandal

It is a national scandal that teachers, doctors and others earning fairly ordinary salaries can face marginal tax rates of more than 60%, and sometimes approaching 80%. It’s inequitable and holds back growth. Rachel Reeves should commit to ending these anomalies. This Government was elected on a platform of kickstarting economic growth. It has a […]

Oct 16, 2024 Policy

How to reform capital gains tax and cut income tax

Capital gains tax (CGT) is currently both too high and too low. It taxes investors at too high a rate when they’ve put capital at risk, only to see it eroded by inflation. But it enables a very low rate of tax for people who haven’t put capital at risk, but are able to pay […]

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Keir Starmer refuses to rule out
hike to employer national insurance

Chris Dorrell .
° Share
Economics Reporter

Oct 15, 2024 Analysis

How to reform employer national insurance – don’t increase it, abolish it

There’s 13.8% employer national insurance when someone’s employed, and nothing when they’re not. That’s unfair – but also creates a huge amount of uncertainty, litigation and tax avoidance. There are reports that Labour is considering increasing employer national insurance. We shouldn’t be talking about raising employer’s national insurance – we should be talking about abolition. […]