Instead of employers deducting income tax then paying gross salaries to employees, the gross monthly payment would go to an HMRC-run tax “calculator”, which would then pass the net salary to the worker.
The reform would mean the end of traditional monthly payslips, because employers would no longer be able to tell workers how much tax they had paid each month.
To make PAYE more accurate, Treasury ministers have suggested that employers should provide HMRC with monthly updates on workers’ salary payments and other financial details.
Such “real time information” could then be used as the basis of a new “centralised deductions” system that would give HMRC an unprecedented role in workers’ monthly salary payments.
Under the centralised deductions system, employers would pay workers’ monthly salary into a central calculator run by HMRC.
There, income tax deductions would be made automatically and the net salary then passed on to the worker by HMRC.
Instead of a payslip detailing pay and deductions, workers would only find out how much income tax they had paid by asking HMRC.
All wages in the country will be paid to the government and then we get to have whatever it is that government thinks we should be allowed?
For fuck\’s sake, not even the Soviets went that far.
Leave aside the practical difficulties: HMRC to calculate and distribute paycheques to 25 million households, on time each week/fortnight? With the correct hours, overtime, allowances, deductions and tax and NI?
Please, don\’t make me laugh.
Concentrate instead upon the moral logic of this. All of our money isn\’t really our money. It\’s the State\’s, all must be reliant upon that beneficient State for every penny of whatever dribble of income they might allow us.
Err, no. \”Treasury ministers\” who are advocating this can fuck off and die: and the Coalition they rode in on.
Even the discussion of this nationalisation of every wage and salary packet in the country is worthy of a revolution: and I\’m sure I won\’t be alone in revolting if anyone ever tries to put it into practice.
Fortunately Whitehall and Horse Guards Road contain plenty of sturdy lamp posts. I\’ll bring the hempen.
Update: Mr E has a proper tax system to suggest:
Every year, I propose that each taxpayer receive an itemised statement from HMRC, providing a detailed breakdown of how every penny of your taxes has been spent – £431.20 on the NHS, £193.31 on the police, 59p subsidising MPs\’ booze, 2p on duck houses, etc. etc. – and countersigned, for good measure, by your local MP. Is it value for money? Does it reflect my priorities to some minimal degree? Am I happy with the political representative that nodded it through? If so, then I may – generously, if through gritted teeth – cut you a cheque; and yes, you can just fucking wait three days for the money to clear like the rest of us, you fucking bastards.
That is, we should have something more like the Hong Kong tax system. I\’m sure it\’ll be a great shock to everybody to know that a tax system which requires you to actually write out a cheque for all you owe to the government has low tax rates.