https://www.bbc.co.uk/news/articles/ced0553gdzzo
Not mentioned is that "pensions" as opposed to "savings for when you can't work or don't want to" have become a sacred cow with an awful lot of parasitic cowherds living off of them.
"At the moment, for most people, if you put any earnings into a pension, you don’t pay income tax on those earnings. And if employers contribute to a pension on your behalf, they don’t pay employers’ National Insurance on that, as they would if they gave it to you as salary.
Between them, these perks cost the exchequer about £50bn a year. Most of that benefit goes to higher earners, who not only put more into their pension pots, but who often deduct income tax at a higher rate than the average worker.
It is an area ripe for reform. Indeed, the right-of-centre think tank, the Centre for Policy Studies, proposed a radical reform of the system 12 years ago. A left-of-centre chancellor will be keen on the potential revenue to be found here."
For my money (hah) the right way to go is to get rid of NI. It was a political lie by L-fg-G to get what is in reality a tax and a benefit into law in 1906. What it does is tax pay for working, twice because there's a deduction before you get paid and in your gross pay, but not investment income, be that from a pension or any other vehicle.
Which, IMO, we actually made a good step towards when the last government cut NI. This government could get the c£20,000mn they're talking about by imposing more Income Tax, indirectly by killing the pension sacred cow and to raise another £30,000mn as is suggested by the £50,000mn figure above. That could then fund another NI cut, one half as large again as the last. Which would be a significant next step towards getting rid of the NI "some-of-Income-Tax" to have only normal Income Tax.
Bonus;
Income Tax is cheaper to collect than NI.
Not mentioned is that "pensions" as opposed to "savings for when you can't work or don't want to" have become a sacred cow with an awful lot of parasitic cowherds living off of them.
"At the moment, for most people, if you put any earnings into a pension, you don’t pay income tax on those earnings. And if employers contribute to a pension on your behalf, they don’t pay employers’ National Insurance on that, as they would if they gave it to you as salary.
Between them, these perks cost the exchequer about £50bn a year. Most of that benefit goes to higher earners, who not only put more into their pension pots, but who often deduct income tax at a higher rate than the average worker.
It is an area ripe for reform. Indeed, the right-of-centre think tank, the Centre for Policy Studies, proposed a radical reform of the system 12 years ago. A left-of-centre chancellor will be keen on the potential revenue to be found here."
For my money (hah) the right way to go is to get rid of NI. It was a political lie by L-fg-G to get what is in reality a tax and a benefit into law in 1906. What it does is tax pay for working, twice because there's a deduction before you get paid and in your gross pay, but not investment income, be that from a pension or any other vehicle.
Which, IMO, we actually made a good step towards when the last government cut NI. This government could get the c£20,000mn they're talking about by imposing more Income Tax, indirectly by killing the pension sacred cow and to raise another £30,000mn as is suggested by the £50,000mn figure above. That could then fund another NI cut, one half as large again as the last. Which would be a significant next step towards getting rid of the NI "some-of-Income-Tax" to have only normal Income Tax.
Bonus;
Income Tax is cheaper to collect than NI.
statistics: Posted by ChrisPat — 3:31 PM - 1 day ago — Replies 1 — Views 48