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    Proposed Tax changes for all salaried staff

    Today, 12:00 on BBC Radio 4 (FM only)
    If you are paid a salary there are some proposed changes to the tax system being considered. It has been suggested it would be more effective for salaries to in effect be paid to HMRC and any residue after tax paid to staff. This is being discussed on Money Box today/tomorrow with Paul Lewis:

    Should the Revenue get the go ahead to deduct tax directly from our pay packets before salaries reach our bank accounts?

    There could be huge repercussions if this goes ahead and there are problems. Imagine talking to a government department to attempt to sort out a salary issue.

    May be worth listening and letting others know.

    bbc.co.uk/rad…o4/ Midday today

    REPEATED Sun 19 Sep 2010 21:00

    Also on iplayer bbc.co.uk/ipl…10/
    Tax stuff starts at 11:20

    34 Comments

    Original Poster

    Banned

    Thanks wooly

    Thanks wooly ..

    This is just getting more and more outrageous everyday...what kind of government goes behind the peoples back to stab us except a condemed government.

    Original Poster


    huntspost.co.uk/new…386

    GOVERNMENT plans to process pay-as-you-earn taxes through a central HMRC computer would inevitably lead to a crash that would leave some employees unpaid, according to the Institute of Directors.

    The IoD has welcomed the initiative to reform the system, outlined in the Government document “Improving the operation of PAYE”, but expressed concerns over the proposal for gross employee pay to flow through a single central system.

    Cambridgeshire businessman Chris Parkhouse, regional chairman of the IoD across the East of England, said: “This document contains a lot of good ideas. But the idea that HMRC should be trusted with the gross pay of employees is not one of them.

    “The benefits of that proposal can be obtained by other means. We look forward to working with HMRC to devise proposals that will obtain the benefits, without the wholly unnecessary risk.”

    A statement from the IoD added: “The suggestion that gross pay might flow to a central computer, which would then pass net pay on to employees, is completely unacceptable. Sooner or later, the system would break down and some people would not get paid. That would be a major embarrassment for HMRC, and a disaster for the employees affected and for their relationship with their employers.”

    The IoD response to the Government’s proposals goes on to agree that the system is in need of reform, to ensure HMRC receives the correct tax more often and reduce the number of extra tax demands needed. It also adds that there is a good case for using real-time information and centralising tax bill calculation, but the red-tape burden on employers should be reduced.

    INFORMATION: The full IoD response is available at iod.com/Mai…pdf


    It might be slightly less concerning if they had a reasonable track record, but...........

    It'll certainly put a stop to all these football clubs racking up big HMRC bills, then not paying (portsmouth)

    Will the discussion be today or tomorrow.

    Original Poster

    I heard that it will be today but you can often listen to stuff you have missed on iplayer. Not sure if this will be available but I guess it should be

    "HMRC is considering plans to deduct tax directly from workers' pay packets before salaries reach their bank accounts. "

    There is something wrong there.
    When I was working, the money that went into my bank already had the tax taken off.
    I don't understand what they are trying to say here.

    Are they saying that they will do away with millions of payroll workers across the country?

    Perhaps I will have to listen to the show to get the full info.
    Hope it ends up on iPlayer 'cos I won't be able to listen to it live.

    saayinla

    This is just getting more and more outrageous everyday...what kind of … This is just getting more and more outrageous everyday...what kind of government goes behind the peoples back to stab us except a condemed government.



    What like one that sent us into war, that lied about weapons of mass destruction, that crippled the UK economy, that splashed out on unnecessary projects such as the ID card scheme for starters instead of saving for the foreseen downturn, that stupidly cut the rate of VAT, that sanctioned an MPs arrest for doing his job, that neglected to invest in the UK armed forces, that cut the 10p tax rate, that tried to mess up Gurkha's that has a number of MP's charged with false accounting because of the MP expenses scandal (i could go on and on)!!!!!
    Edited by: "stiffnuts" 18th Sep 2010

    Original Poster

    Yes, that was something that crossed my mind as well.
    What companies are going to want to employ payroll staff if much of the work is then transferred elsewhere?


    I heard a snippet on the BBC this morning talking of this proposed change. If I heard it correctly (not sure) the consultation period ends this coming Thursday.

    so if I'm reading this right, what they want to do is have my wages paid to HMRC, they take the tax & NI out,then send what I'm owed onto me ? they are having a giraffe, after the last cockup !

    Original Poster

    richp

    so if I'm reading this right, what they want to do is have my wages paid … so if I'm reading this right, what they want to do is have my wages paid to HMRC, they take the tax & NI out,then send what I'm owed onto me ? they are having a giraffe, after the last cockup !



    That is my current understanding of it as well. Programme may give more info.

    WoolyM

    That is my current understanding of it as well. Programme may give more … That is my current understanding of it as well. Programme may give more info.



    many thanks for the headsup, I'll try & catch this at some point.

    Original Poster

    Might be worth people bumping this so that as many people as possible see if before the programme goes out.

    WoolyM

    Might be worth people bumping this so that as many people as possible see … Might be worth people bumping this so that as many people as possible see if before the programme goes out.



    yeah will do. Was this in any daily newspaper at all, ? THis kind of story should make the front page, dunno why not...

    just set my pvr to record it. BBC Radio 4

    Original Poster

    Listen from 1:00 there is a hint but no detail given by David Gauke, Exchequer Secretary to the Treasury.

    Link

    What about the thousands of people working in Payroll Departments all over the country....

    Ridiculous. Why worry about shifting paye when there are billions £ on the black economy paying no tax to anyone

    Imagine HMRC deciding that you have underpaid historic tax and taking ALL your salary and you getting nothing until the tax bill is paid... 6 Million people not being paid any money for example and nothing you can do about it...

    Banned

    Won't happen. It's completely against the principles of small government and would be too expensive.

    Banned

    stiffnuts

    What like one that sent us into war, that lied about weapons of mass … What like one that sent us into war, that lied about weapons of mass destruction, that crippled the UK economy, that splashed out on unnecessary projects such as the ID card scheme for starters instead of saving for the foreseen downturn, that stupidly cut the rate of VAT, that sanctioned an MPs arrest for doing his job, that neglected to invest in the UK armed forces, that cut the 10p tax rate, that tried to mess up Gurkha's that has a number of MP's charged with false accounting because of the MP expenses scandal (i could go on and on)!!!!!



    Which 'foreseen downturn' was this? The one that caught out every government, financial institution and almost every 'expert'?

    Original Poster

    Interesting that nothing was mentioned in the programme introduction. Will listen to it all just in case but I wonder if this is another example of proposed changes that are then hushed up once the impact is realised

    Another example being the initial proposed replacement of NHS Direct that was then abandoned apparently

    Original Poster

    Well it was mentioned on the programme

    As was said earlier it seems incredible that a change of such magitude could possibly be put in place without any real mention of it.

    The Accountant on the programme John Whiting who was all in favour of the proposals has been appointed by the treasury to help implement the changes so he was hardly likely to sound too much caution.

    There was apparently an article in The Times about this but not everyone buys a newspaper and now fewer read online due to Rupert Murdochs paywall.

    People need to start making their voices heard if they have concerns on this one

    Original Poster

    I noticed this Have Your Say - Direct Taxation

    HMRC is considering plans to deduct tax directly from workers' pay packets before salaries reach their bank accounts.

    In a discussion paper from the Revenue, employers would no longer be responsible for deducting tax and instead would give information on gross salaries to HMRC.

    This comes in the wake of bad headlines for the Revenue over tax code mistakes which has led to 1.4 million people facing demands to pay back underpaid tax.

    Should HMRC be given the power to deduct tax directly from your pay packet?

    Will a centralised system enable HMRC to gather more up to date and accurate financial data about you?

    Do you think that removing the responsibility of employers to deduct tax from your pay packet could lead to less or more mistakes over tax codes?

    Tell us your views


    It would be nice if there was a way of reading the comments from contributors but I cant find that anywhere

    comments are just below the article & I can see they are not in favour apart from an employer, this will be another huge IT exercise that will get scrapped early on in its conception costing us billions, well lets hope it gets shelved prior to that !

    Original Poster

    I see them now maybe people have just started contributing to the discussion

    I thought there maybe an e-petition being started on the Number10 site, in fact there are no petitions showing at all, did the new government wipe them all ?

    FilthAndFurry

    Which 'foreseen downturn' was this? The one that caught out every … Which 'foreseen downturn' was this? The one that caught out every government, financial institution and almost every 'expert'?



    Is that the only one you could pick on. Don't embarrass yourself it was foreseen by many economists and its associated periodicals.

    This blog is just a start. It didn't take Sherlock Holmes to work this out!


    Your text here

    Original Poster

    richp

    I thought there maybe an e-petition being started on the Number10 site, … I thought there maybe an e-petition being started on the Number10 site, in fact there are no petitions showing at all, did the new government wipe them all ?



    I couldnt see a petition either. The start a petition option still appears to be there. At least if this is anything to go by. ...and there was a climbdown over these proposals.


    Whenever I think of HMRC I just remember this.£20,000 reward offered for discs
    Edited by: "WoolyM" 18th Sep 2010

    lol +1 for self employment!!!
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