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Just who is he kidding on tax?

10:46am Saturday 17th May 2008

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By Reader's letter »

Chancellor announces tax cuts - who is he kidding now? Is the great British public so naive as to fall for this ridiculous spin?

The MPs that made such a noise about this in the first place are a disgrace to their party.

The abolition of the ten per cent rate was tabled in the 2007 Budget - what excuse do they have for making such a fuss about it now? I knew what the effect would be.

These MPs have let down their party by creating such a backlash so late in the day, and being too short-sighted or too lazy to comprehend the Budget.

The massively increased financial burdens far outweigh the benefits of this tax cut. Alistair Darling's advisors should try living in the real world with people that have to deal with this contradictory legislation.

Effects on HMRC:

  • it will have to rewrite and reissue thousands of tax tables
  • employer CDs will need to be reproduced
  • software programming needs to undertaken in a short space of time
  • new tax codes must be issued for all employees.

Business effects:

  • small employers are likely to fail to implement this change, meaning records will be incorrect when filed, leading to massive time spent by HMRC and tax advisors sorting out this mess
  • software providers will have to rewrite software
  • tax manuals relating to this year will need to be rewritten
  • hundreds of professionals have paid for budget reports, tax data cards and websites, that are now incorrect
  • NI bands will now remain unaligned.

Mr Darling should get better advisors and stick to the decision made by his predecessor, and MPs should listen to the Budget.

This is politics at its worst, playing for votes.

If I didn't have to spend so much of my time sorting out the problems created from the absurd tax legislation, I'd run for office - it would not be difficult to do a better job.

Michelle Thirsk, FCCA ATT FMAAT, Partner CGA, Park Court, Riccall Road, Escrick, York.

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MyView, York says...
7:40am Mon 19 May 08

Am I right in thinking that the tax allowance increase is actually only promised for this tax year?

bernard, says...
12:32pm Mon 19 May 08

The effects of the abolition of the 10p rate were obvious from the start, take from those at the bottom to fund tax cuts higher up the scale, such as the changes to Capital Gains Tax.

Had those 'concerned' parties shouted about this at the time maybe it wouldn't have dragged on until a week or so after the local elections.After all with the backdown over the increase to captial gains tax, this Government has shown it's open to negotiation.

Another interesting angle to the 10p tax band saga, is that (and this is purely an educated guess) I would expect that the brunt of the extra tax to pay will fall on women. This is mostly due to the generally lower wages earned by women working parttime to juggle childcare and work. Interesting choice for a government committed to reducing child poverty.

If you fancy standing Mrs Thisk, I'd like a place in the cabinet...

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