The footnotes are important

26 The Excessive Pay Levy is a payroll tax, charged against the
employer of any individual earning more than a defined limit
(from all sources).

So if JK Rowling becomes a local councillor then the LA will be charged the extra tax on her £12,000 a year because she sells a lot of books.

Well thought out, isn’t it?

Another fun footnote:

“Offshore Trust Levy”. Data from Land Registry and
Private Eye calculations.

There’s a research arm we can trust, eh?

34 VAT on private school fees

34 Fabian Review, January 2011

??

21 comments on “The footnotes are important

  1. the other source for the offshore levy is Prem Sikka. It’s a wonder that the Murphmonster isn’t cited

  2. 26 The Excessive Pay Levy is a payroll tax, charged against the employer of any individual earning more than a defined limit
    (from all sources).

    The “defined limit” translates to that amount that no lefty will actually be capable of earning in any given year. The fact that Spud thinks it should be set at ten times median income tells you he’s convinced he’ll never come close to earning that much in any given year.

  3. I’ve always said that ‘rich’ are always defined as starting at approximately 1.5 times the income of the person doing the defining.

  4. So do people have to tell their employer about their other income?

    Didn’t the courts even decide that husbands and wives couldn’t be compelled to tell each other what they earned?

  5. I’m on PAYE through three agencies, and each one of them knows less than ***k all about my income from the others. That’s solely my business.

  6. “So do people have to tell their employer about their other income?” Wouldn’t that be done by hmrc using tax coding?

  7. dearieme: it may be, but as it is a tax on the employer, then the employer would have to know. But which employer….? All of them…? Hmmm…

  8. So do people have to tell their employer about their other income

    Not currently. And it would be very difficult to implement afresh. Each employment source could vary from month to month. It might need some sort of centralised government payroll…. (the bastard runt that is RTI rears its ugly tentacles).

    Wouldn’t that be done by hmrc using tax coding?

    Not currently in any live sense. Even negative tax codes wouldn’t practically deliver that currently.

    It’s all assuming that there is just one employer. Hence, if it says “from all sources”, HMRC would have some more new processes to screw up and get wrong again…

  9. Apart from which if you have self-employment income you will not know what it is yourself until after the tax year has ended.

  10. Regarding the ‘excessive payroll tax’.

    Would that mean that if my income from ‘other sources’ (ie other work or investment) then I wouldn’t be allowed to volunteer because the volunteer organization would now need to pay that tax?

    If I work for two companies and my combined income is above that limit, do I pay that tax for *both* companies?

    Do the people who come up with this stuff not at least run it past the interns for comments?

  11. Alternative proposal: create a higher band of ERNI. No new rules, just a new rate – far simpler all round.

    OK, it doesn’t get people with high incomes, but it does get people with high salaries. Not sure why the employer should be punished because an employee has private means…

  12. Pellinor, the employer must be punished for employing someone with private means who is thus clearly stealing and denying the job to deserving, hard working families or something.

  13. The footnotes are important

    Not really Tim, since the whole document will become yet another chapter in the history of Labour failure (thank god), little more than Volume II of the Longest Suicide Note in History.

    We should be thankful that the planets have so aligned to create BRExit, the Cameron flounce out and the Corbyn/McDonnell reign over Labour.

    If these conditions combined don’t see a Tory landslide and the terminal decline of Labour then I will be very surprised.

    Talk of a new Central party (tinted right or left) akin to the SDP of old is idiotic though. Nobody fights for the centre.

  14. Some great comments, thank you gentlemen.
    It’s worrying to me that based on the 2005 GE ( Labour 35.2% ) the difference between tyranny and being in the 2nd division of sensible countries as now is so small. What is it that makes these policies when delivered by government popular when the free market has most of them covered.

  15. @Bongo – are policies this extreme popular -local election results would suggest otherwise? That said for some reason May seems to think she needs to offer some pretty stupid stuff…

  16. Policy preferences seem to have gone 180 degrees.
    Ten years aog, people approved of Tory policies. Once told they were tory, they changed their minds.
    Now a lot of people approve of Labout policies. Once told they’ve been cooked up from that chap wandering out of the Altzheimer’s home, they change their minds.
    I’m OK with this. Voting better heartfelt than brainfelt, as most people are a bit short in the brain dept.

  17. MTD, to be introduced by the Tories will theoretically solve this problem next year.

  18. Friends, the answer is simple – the Corbyn government will pass a law requiring everyone earning over a modest threshold to inform his/her employer(s) of their total earnings from all sources – even if they don’t know what they are.
    The next move is to make self-employment illegal for anyone paying highest rate tax (except MPs, of course). Barristers will be required to turn down any work that lifts them into the highest tax bracket.

  19. Jim said:
    “I’ve always said that ‘rich’ are always defined as starting at approximately 1.5 times the income of the person doing the defining.”

    There was a study on this a while ago; proved your general principle but I think it was a bit lower than 1.5. More like 1.3 I think (which shows that people either have low expectations of the future, or can’t think ahead, or just can’t do maths).

  20. 26 The Excessive Pay Levy is a payroll tax, easily avoided by employing highly paid staff from an offshore company.

    There, fixed it for you.

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