Why is there no national insurance on income from wealth in the UK?
Tax Research UK
by Richard Murphy
3h ago
I have just posted this video on YouTube: The link is here in case it is needed. The transcript is: Why is there no national insurance on investment income in the UK? I can't explain that. If you work for a living, and most people watching this video will probably either have worked for a living before they're retired or will be working for a living now, you pay national insurance on your earnings. Quite a lot of national insurance, in fact. Jeremy Hunt has reduced the rate to 8 per cent for most people at present, but it's still a significant additional to your tax. However, if you live off ..read more
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The Bank of England does not care
Tax Research UK
by Richard Murphy
3h ago
This tweet was published by the Equality Trust (whose work I recommend) yesterday: The overwhelmingly clear message is that the rate of inflation for those on lower incomes - many of whom will be private renters - is much higher than the reported rate of inflation for the UK as a whole. The reasons are clear. First of all, the rate of inflation on essential items like food remains above CPI as a whole, as Office for National Statistics data makes clear. Second, and as I noted here this week,  rents are currently rising at a rate equivalent to the overall rate of inflation suffered by tho ..read more
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The IMF really needs to work out in whose interests the world economy should be run
Tax Research UK
by Richard Murphy
5h ago
The IMF has been sending out some very confused signals from its spring meeting, being held in Brazil this week. If I have read the bulletins that I have received correctly, and appropriately interpreted them within the context of the UK, which some of them specifically address, then the messages appear to be at least fourfold. Firstly, they are not convinced that the risk of inflation in the UK is over as yet, and so are demanding caution. Second, they have downgraded UK growth expectations for the year to well under one percent. That appears realistic, especially if in response the their dem ..read more
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Tallking to AccountingWEB
Tax Research UK
by Richard Murphy
5h ago
AccountingWEB published this podcast interview with me yesterday. We talk about the Taxing Wealth Report 2024 in the main, but also about my concerns about the failings of the Institute of Chartered Accountants in England and Wales. It was a lively interview, with quite a lot of animated comment by me, if I am honest. I have an affection for AccountingWEB. I was a contributing editor for about a decade ..read more
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A 10% student tax is unfair
Tax Research UK
by Richard Murphy
22h ago
I have just posted this video on YouTube. Why are we imposing tax rates only designed for those with much higher incomes onto students earning little more than the minimum wage? It makes no sense, at all. The transcript is: Why are so many people paying up to 38 per cent tax on quite, well, average levels of earnings in the UK? As we know, the basic rate of income tax on earnings up to £50,270 a year in the UK in 2024 is supposedly 20%. Supposedly, but not actually, of course. If you earn your income from work, you also pay National Insurance. And that adds 8 per cent to the bill. And then if ..read more
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The FT view: let those least able to pay bear the burden of tax
Tax Research UK
by Richard Murphy
1d ago
The FT editorial this morning says: I agree with all that. But then the FT reveals its spots. Having implied that changes to rules on non-domiciled people and on private equity might not be justified, it says: But politicians need to factor in the cumulative burdens of doing business in Britain, and the wider signals they are sending. Wealthy individuals are footloose, and other countries — with more generous tax offers — are ready to take them. Push too far, and the tax base will also fall. With a nod and a wink the FT is promoting the idea that the so-called 'wealth creators' will leave i ..read more
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A 3% inflation target would work just as well as a 2% one
Tax Research UK
by Richard Murphy
1d ago
I just posted this video on YouTube and elsewhere. As I note, a 3% inflation target would work just as well as a 2% one - so why are we going to pay a massive price for getting to 2% inflation? The transcript is as follows: The UK's inflation target is 2%, but 3 per cent would do just as well. Let me explain. The Office for National Statistics has just come up with new data that says that the inflation rate in March 2024 was 3.2%. Markets have reacted really adversely. They expected it to be lower than that. And they're now saying, as a result, that interest rates must remain higher than we w ..read more
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Jeremy Hunt is a terribly confused man
Tax Research UK
by Richard Murphy
1d ago
Jeremy Hunt is a terribly confused man. The FT has a report on comments he has made on Thames Water this morning. At the heart of this is a suggestion that: The company needed “to sort out their own issues.” They noted that he added: “What we’re never going to do for people who invest in the UK is say that the state is going to insure you against bad decisions made by management or shareholders. That’s what markets are about.” They also report him saying: It would be “completely wrong” if customers at Britain’s biggest water group had to pick up the tab for bad decisions made by its manag ..read more
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Scotonomics on the Taxing Wealth Report
Tax Research UK
by Richard Murphy
1d ago
I was on Scotonomics last night, discussing the Taxing Wealth Report, and right at the end its relevance for Scotland. For reasons I can’t explain the YouTube link will not embed here, but you can watch the video by clicking here.  ..read more
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The rich won’t quit
Tax Research UK
by Richard Murphy
2d ago
This YouTube is a further discussion of 'Colin' and his threat to quit as a result of tax increases, already discussed in a different way, here this morning: The transcript is: I put out a TikTok yesterday in which I suggested that the wealthy should lose some of their pension tax relief. On average, the wealthiest people in the UK - those who pay higher rate tax, and whether they like it or not, they are the wealthiest people in the UK because they are at least in the top 15 per cent of income earners and many of them much higher than that - those people get on average £8,000 a year or more ..read more
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