Vat will. So will interest rates as it’s higher risks to lend Tax bands will change drastically Council tax will go up to the maximum allowed Changes to corporate tax Changes to how Se are taxed.
And yet I bet all the tax loopholes and havens stay open for business. It's you and me who'll foot the bill for this, not those who've 'avoided' literally billions in tax over the years. There's going to be some pretty expensive HMRC dinners that we're not invited to but end up costing us billions of pounds. Nice work if you can get it.
we are all in this together! Unless you’ve got your tax scams, off shore accounts and company bonus schemes sorted
The only one I disagree with is interest rate. It’s likely to go down to close to 0, to encourage spending and kickstart the economy
It’s difficult to imagine it going down from the current level, but I can see it being years before it goes above 1% now.
Itll rise. Not drastically but to at least .5% In terms of lending, most originators of finance will be reviewing terms as risk has increased given the uncertanty. Eg your car might be on an example of 9% APR but that will creep upto 12% and/or a higher deposit will be needed.
VAT is likely to go up to 25%. It is a regressive tax which means the poor pay the same level of tax as the well off. I also predict that income tax allowances will be frozen for a while, probably until the year before the next election, but there will be small increases in the NI thresholds to honour the Tory election pledge. Other indirect taxes will also increase. We will be paying for this for a very long time.
There is an argument that reducing VAT works better, as the lower cost of goods increases demand and results in a higher overall tax take..
No way VAT will go up. Will fuel inflation & kill demand & a whole lot of industries. I wouldn't expect a huge hike in taxes in the first year or two TBH. Quantitive easing (printing money) could be used if inflation stays low & increased government borrowing as interest rates are so low. This isn't something austerity will work with, I think even the Tories have realised that. In the longer term taxes may well go up, depending on tax receipts & recovery levels.
Gordon Brown made a temporary reduction to VAT as a response to the banking crisis so it may happen again. Howver, as the Tories are a "low tax" party (meaning low income tax) their preference is to hike up indirect taxes as Gideon did at the start of austerity when he raised VAT to 20%.
Note the year but an article i pulled from archives, but still relevant. Tax avoidance I believe still paying a pittance. Claiming profits were reinvested. Paying as little in real terms as 1%. While small businesses are paying full dues. Note the profits and share price rise.Hit the B'stds hard. Amazon have been criticized for paying less corporation tax in the U.K. in 2017 than it did the previous year. The tech giant disclosed in a filing Thursday that its corporate tax bill in Britain was around £4.6 million ($6 million) last year, almost half the £7.4 million ($9.6 million) it paid in 2016. The amount actually paid was just $1.7 million, due to tax deferrals. Amazon says it has paid all taxes required in the U.K. and every country that it operates The filing was made by Amazon U.K. Services Ltd, a division of the company devoted to warehouses and logistics operations. It also showed that the e-commerce firm’s pre-tax profits in the U.K. leaped from about £24.3 million to almost £72.4 million. Amazon as a whole posted its highest ever quarterly profit last week, reporting a net income of $2.5 billion. It marked the third consecutive quarter in which the company surpassed $1 billion in profits. In Britain, corporations are required to pay 19 percent of their profits in tax. The government wants to lower this to a rate of 17 percent by 2020. The Tax Justice Network, an anti-tax avoidance advocacy group based in the U.K., criticized the lower tax payment, calling it an “insult.” “It clearly shows that our global tax system is fundamentally broken and needs urgently fundamental reform,” the organization told CNBC via email. “Otherwise, small and medium enterprises will be ruined at the expense of global players who are most aggressive in pushing down their tax rates and controlling ever more market share.” The activist group said large multinational firms should be forced to report their financial activities on a country-by-country basis. A spokesperson for Amazon said in statement: “Corporation tax is based on profits, not revenues, and our profits have remained low given retail is a highly-competitive, low margin business and our continued heavy investment.” Amazon has around 27,000 employees in the U.K and it grants full-time staffers share awards, which the company says reduce its tax liability. Amazon’s share price has increased 84 percent in the past two years. The news could embolden critics of Amazon who claim the firm and other tech giants are not paying enough tax. President Donald Trump for instance has attacked Amazon frequently, claiming the company pays “little or no taxes to state
I seem to recall making this call a while ago.... My (semi) educated guess would be that in order to make good the debt is that this government will set their stall out to increase taxation, -initially by propaganda along the lines like those seen after the banking crash by blaming anyone unfortunate enough to incur the wrath of the people who hold the capital. Not by means of anything as radical as a wealth tax, closing loopholes in tax avoidance/evasion measures, increasing the 45% rate back to 50% or higher, nor will it be anything else that will befall upon the people who are in a better position to contribute more. This self serving government will, I believe increase VAT after all Brexit will give these people a free reign. If people swallowed brexit then they will be easily duped into swallowing a VAT increase from 20% to 25% - after all everyone will have to pay it. The fact that this would hurt the least well off the most will be conveniently ignored by the Govt - they will just not answer the direct question - we've seen similar evasive answers already from this Govt. leebrilleaux, Apr 13, 2020