Britain Govt proposes becoming paymaster for all Britons

[IntLibber]

http://www.cnbc.com/id/39265847

The UK's tax collection agency is putting forth a proposal that all employers send employee paychecks to the government, after which the government would deduct what it deems as the appropriate tax and pay the employees by bank transfer.

Personally, this is just the sort of thing we need Obama to propose in order to get the electorate off their fat asses, get their shotguns and torches, so we can finally burn Washington DC to the ground with weeks of scheduled executions.

[rjaypeters]

There will always be a large island off the coast of France.

[WizWom]

I've read the history of the French Revolution - and after. It's very messy, and the French just traded one set of bastards for another.

It's so hard to find a good post-revolutionary government these days. America lucked out, by taking a multi-year breather.

[chrismb]

That's real funny. It is funny because, you may not know or have heard, it has just screwed up the PAYE tax on around 6 million tax payers, about 25% of all tax payers, following the introduction of a new computer system, and they are gonna be asked for an average of £1,500 back (about a 1/3 are likely to receive refunds). There are so many people involved that this is going to go on for months simply because they cannot generate enough letters.

Now, the system that is generating those letters is creating more errors. And so the errors compile.

I wouldn't trust HMRC leadership to wipe their own arses without leaving a mess. That is, if they've not already forgotten which hole is the arsehole, given that shit has been coming out of both ends. The chap in charge stated that he saw no issue with 6 million people's taxes being out of order and that he had nothing to apologise for.

[MSimon]

I've read the history of the French Revolution - and after. It's very messy, and the French just traded one set of bastards for another.

It's so hard to find a good post-revolutionary government these days. America lucked out, by taking a multi-year breather.

We also had a revolution run by deep thinkers and not street people.

If only the Dems had some one more competent than a community organizer we would be much deeper in the muck.

[D Tibbets]

I don't know the tax codes in Great Briton, but how is this different from payroll withholding tax? Has Britten never withheld payroll taxes before? Is this complexity a governmental effort to overcome tax fraud in private industry? Withholding taxes proactively may represent bureaucratic bumbling in this case, but proactively withholding payroll taxes is nothing new, at least in the US.

Dan Tibbets

[chrismb]

I don't know the tax codes in Great Briton, but how is this different from payroll withholding tax? Has Britten never withheld payroll taxes before? Is this complexity a governmental effort to overcome tax fraud in private industry? Withholding taxes proactively may represent bureaucratic bumbling in this case, but proactively withholding payroll taxes is nothing new, at least in the US.

Dan Tibbets

Yes, that is PAYE - withholding of taxes by the employer who pays in a lump sum at the end of the year. The change is that ALL the pay is proposed to go to the gov and then the gov are the ones who actually dish out the cash.

[D Tibbets]

Well, if the employer held the withholding till the end of the year, then they had a cash flow advantage. This would shift that advantage to the government. It would be neutral for the employees (unless there is an additional couple of weeks delay before they received their pay checks).
One other advantage for the government would be that they hold the withholdings, so that if the employer fails or skips town, the money is not lost.

It also might grant creditors easier access to paychecks, with less due process, not necessarily good for the individual, but good for the banks.
It would also make it easier for various agencies to collect fines, fees, and if not carefully watched, additional hidden taxes. A win for government and financial institutions, with no benefit for business or individuals. Sounds like big brother at work...

Dan Tibbets

[chrismb]

Sounds like big brother at work...

exactly. that's why it's a story. The tax system has always been set up in the anticipation that companies have 'a [supposed] fiscal advatange' in keeping the loot til the end of the year. It's not, it's just that that is how the system is geared. The gov is just trying to jam the gear stick into 6th gear when its only a 5 speed box, due to economic climate (the generous view), or that they just get a hard on with the Big Brother power (the cynical view).

[EricF]

When the government gets the money from your employer, and then forgets to pay you or for some other reason doesn't pay, or gives you way too little, how does someone compel the government to pay what they owe?

[chrismb]

When the government gets the money from your employer, and then forgets to pay you or for some other reason doesn't pay, or gives you way too little, how does someone compel the government to pay what they owe?

again...exactly the issue!!

In UK we have a fairly effective, low cost and efficient Small Claims Court procedure for claims under £5,000, which has an additional process for up to £15,000..... But you can't use it for claims against government and local authority bodies.

Indeed so, why do governments [and other political movements] think "Ah! this isn't working well. We can do better!" only to find that they run into all and exactly the same problems, difficulties and errors? Surprise, surprise!!