Proposed New & Improved UK Tax System

[numbersrule]

HMRC have got it all set up wrong.

I've got a much better idea.

To find a solution, first identify the problem, which seems to be that too many people and too many businesses do not pay the correct tax.

The best way round this, is for all Pre Tax Earnings to go straight to the Treasury. Then each person or business submits an 'Income Claim' to HMRC to enable monthly pay for people and businesses.

They've had it the wrong way round all along.

Historically, governments were deluded into thinking that somehow people and businesses and accountants and bookkeepers could be expected to rationally, sensibly and accurately assess Tax Liabilities.

So let's see if it could work the other way round whereby the Government has the role of rationally, sensibly and accurately assessing Income for people and businesses.

 

[MikeJ]

Just so I've got this right...

If I want to buy some cornflakes* from Tesco, you think I should pay that money to the government?


* Yes, Cornflakes. It's a standard thing to discuss when talking about daft ideas.

 

[numbersrule]

No, you have misunderstood.

The Government will provide you with money via your bank account that you can use to buy your Cornflakes.

In turn, the Government will have received that money from your Employer, or, if you are Self Employed from your Sole Trader business.

It's a different way of managing the flow of money.

 

[fisicx]

I’m assuming this is a joke. Apart from being totally impractical it just wouldn’t work.

How would HMRC be able to calculate your tax without knowing all your deductibles?

 

[MikeJ]

No, you have misunderstood.

The Government will provide you with money via your bank account that you can use to buy your Cornflakes.

In turn, the Government will have received that money from your Employer, or, if you are Self Employed from your Sole Trader business.

It's a different way of managing the flow of money.

How though? How does the company get the money to the government? When the money hits the till, then what?

(I've no idea why I'm engaging in this either, other than keeping you off the streets and therefore performing a public service)

 

[fisicx]

I think the idea is you put all the pound coins from your till in a box and post it to HMRC. They then count the money and send back the bit they don’t want. You then complain they got the sums wrong (again) and please send some more back to the shop.

Maybe @numbersrule is @danceswithpoodles all grown up.

 

[numbersrule]

I’m assuming this is a joke. Apart from being totally impractical it just wouldn’t work.

How would HMRC be able to calculate your tax without knowing all your deductibles?

Hi fisicx
Because under the new system, HMRC wouldn't need to know the deductibles. You see, businesses would be able to pay for their deductibles because the deductibles would be digitally tagged with allowable payment enablement via links on the supplier invoice.

But there would be no allowable payment enablement for individuals to receive income from businesses.
Only .Gov would be able to pay individuals.

And the only outlet for money not attributed to allowable costs would be from businesses direct to HMRC / .Gov.

So, for example if a business wanted a loan to fund expansion, the business would have to apply to .Gov to have the loan repayment requests digitally tagged as allowable payments.

Businesses would no longer be able to make on the spot choices about financial transactions. All financial transactions would be pre planned well in advance to ensure that allowable payment enablement was in place.

All the digital tagging of payments would be controlled by the banks which would be owned by .Gov anyway by then following the Great Nationalisation.

 

[numbersrule]

How though? How does the company get the money to the government? When the money hits the till, then what?

(I've no idea why I'm engaging in this either, other than keeping you off the streets and therefore performing a public service)

When the money hits the till ( there will be no cash ) it will go straight to the business bank account at the bank owned by .gov and from there the business will be able to use some of the receipts to pay digitally tagged allowable expenses ( refer to my answer post #7 ). .gov will then use AI Algorithms to estimate a regular daily payment to the Government's Central Account from where individuals receive their Personal Wage Allocation which is made up of three components.

One component of the Personal Wage Allocation is a standard living wage that is the same for everyone.
A second component is based on the same Algorithmic system that determines the daily take from each business and also determines the ' per employee enhancement ' applicable to all employees of any particular business.
The third component is based on an individual's environmental footprint, thereby benefitting individuals who contribute more to environmental quality in their neighbourhood.

 

[MikeJ]

Well that's all nice and easy. Problem solved.

Pub anyone? First rounds is on Sir Keir, as he has all the money now in this new system and NOTHING CAN POSSIBLY GO WRONG!