‘Stop stealing tax from students’ accountancy firm tells Chancellor
Accountancy firm Bishop Fleming has issued a ten-point wish-list for the Chancellor’s Budget, to be delivered on March 18.
Matthew Lee, Managing Partner at Bishop Fleming comments: “We’re hearing the pre-election promises made by David Cameron, Ed Milliband, and the other party leaders, but on 18th March the Chancellor, George Osborne, will deliver his pre-election Budget.
“If Mr Osborne wants to make a difference to Britain’s ability to sustain its recovery, there are ten items that he should announce – without waiting for the General Election.”
1. Re-think Business Rates.
2. Scrap the auto-enrolment pensions scheme for very small employers.
3. Agree to abandon the fuel-duty escalator.
4. Extend the 65+ bonds to everyone.
5. Extend the £500,000 capital allowance or five years.
6. Tax the foreign lorry-drivers.
7. Be brave: cut the 45% income tax rate to 40%.
The reduction in rate from 50% to 45% from 2013 increased tax revenues, and the same will happen if it is cut back to the previous rate of 40%.
Some companies are holding back on distributing cash to their shareholders as they do not want to pay 45% tax.
8. Please cut, rather than increase tax complexity.
9. Scrap the “complex tax bands”.
10. Stop stealing tax from students! Right now, HMRC is “stealing tax” from students, and other temporary workers, who do not get their annual personal allowance because PAYE is geared to spread that allowance over a full year