Tax is very taxing

Here is one that may raise some controversy and it is about tax and the amount of different ones. I think that the reason there are so many is so that nobody really knows how much tax they are paying. Because we live in a nanny state the politicians might feel that it would not be good for every one the know the full amount.

As some of you know we at County Battery Services practice 2 second lean which is a system of continuous improvement which looks at ways to reduce waste.  There are  too many taxes and licenses in the UK which is really  inefficient. You may say “but it does create jobs!”  unfortunately these jobs don’t create wealth for the country they are an extra expense which costs everyone more money. Imagine you could harness the brilliance of these tax people to work on projects to create wealth instead of the opposite.

We continue to hear speculation of all the bad things that will occur after Brexit, believe me, nobody knows what will happen. Pay no heed to these soothsayers if we as a country can become efficient then the world will once again will be our oyster.

So why do we don’t just have one tax? Lets have VAT at a high rate and get rid of the income tax car tax smoking tax all the rest. The country has a high rate of employment at the  moment and allegedly lots of people will leave our shaws at Brexit so the people who work in the tax field should be good for jobs

I am really interested  in your views will my system work?

How many people are in work in the UK I dont wish to worry you but!

According to the office of National Statistics August to October 2014 30,796,000 people were working in the UK

http://www.ons.gov.uk/ons/search/index.html?newquery=part+time+employment

26,029,000 were in employment 4,535,000 Self employed  8254,000 part time

5,412,000 worked for the government

If we estimate that for every government worker there is another person either sub contracting, supplying or otherwise  There are also a large number of people employed by charities most of these are government funded.

The rate is two to one. Current tax on employment is 45.8% that is 20% income tax Employers National insurance 13.8% and Employees National insurance 12% after the first £10,000

For easy workings lets assume we have 150 workers 100 in the private sector and 50 in the public sector and lets assume they all earn £1.00 each 50% of wages go to the Government  the Government would have an income of £100 and out goings of £50 . £50 profit excellent I hear you say but that needs to pay for the other 35 million unemployed,sick,old aged pensioners, disabled, I am not so sure it is enough.

What do you think?

How to pay for the NHS? Increase or decrease TAX?

Difficult to create a plan to save the NHS never mind in a one page blog But I do like to pose a few questions maybe someone better than me can create that plan?

Whilst looking at NHS website http://www.nhs.uk/NHSEngland/thenhs/about/Pages/overview.aspx  I stumbled across this information

“The NHS employs more than 1.7 million people. Of those, just under half are clinically qualified – including 39,780 general practitioners (GPs), 370,327 nurses, 18,687 ambulance staff, and 105,711 hospital and community health service (HCHS) medical and dental staff.

Only the Chinese People’s Liberation Army, the Wal-Mart supermarket chain and Indian Railways directly employ more people.

The NHS deals with over 1 million patients every 36 hours.

Funding for the NHS comes directly from Taxation and the budget for 2012/13 was around £109 billion now I don’t know what the UK budget deficit is but I am sure that £109 billion would knock a substantial hole in it!

I wonder what jobs the staff that are not clinically qualified do I am sure there are loots of cleaners and caterers, accountants which I am sure is necessary but is it necessary to have one person to support every other person on the “coal face”? When we look at costs at County Battery Services our biggest cost is our most valuable asset our people and we have to be very conscious that they are efficient, effective, and happy, I am not sure from the reports in the media that any of these hold true in the NHS.

For those people that are fortunate enough to work for a company that provides health care insurance the Government penalises this as a benefit in kind. I see the benefit staff members can have access to treatment that otherwise they may not get at times to suit them and their business. The benefit to the Country is that people accessing insurance causes no drain to the NHS in fact there are cases when the NHS can charge for their services. More people using insurance helps to employ more people in that particular field in fact I am not sure if there is a down side at all.

How many people would need to take up private health insurance to balance the books? I can’t say. I do think that letting people have tax breaks for taking personal health cover would increase the amount of people taking it. Would the cuts in tax be enough to lower the overall spending? Maybe what do you think?

Image courtesy of stockimages at FreeDigitalPhotos.net

Pensions are they good value

Something strange about Pensions. Here is my view. Someone you have only met once or twice contacts you they say you need a pension!
The rules around this are you give a chunk of your wages for the next 40 years there is a bonus here there is no tax on money going into a pension. Now the pension company will not guarantee to make a profit for you but they will continue to take fees from you for borrowing your money profit or not! When you reach the age at which you wish to stop work then you can buy another plan with more fees that pays you back the money you have paid in. Guess what then you can pay the tax on it too
Somehow non of this seems right. So lucky you the Government now are to raise another tax sorry pension contribution scheme because you can’t be trusted to do this yourself.
Have I got this right?

Its Not Fair

I have quite an issue about the word fair I seem to hear it quite a lot both in the negative “it’s not fair!” and the the positive “fair enough” I even heard the Prime Minister saying that something was fairer (whatever that may mean?).

Well lets get it straight nothing is ever fair! Its not fair I have a job and others don’t. Its not fair Richard Branson earns more than me, I eat more food than my 13 year old son is that fair?

When my children were little they would say “its not fair” on numerous occasions to which I generally replied “not much is” Recently to popular thing to say is “fair enough” to mean alright

Fair is very subjective the best fair is the one with the rides