Next stupid tax idea

Speaking as a Chartered Tax Advisor, I think this is a crazy idea that will never get implemented. Why are Deutsche Bank proposing tax policies anyway?

People might be saving a few bob working from home, but that doesn't mean it won't go straight back into the economy when they spend it on something else. Its tax policy that prevents change for the better.

Yes there might be some short term pain as we adjust to new ways of working, but you can't stop progress, certainly not with tax policy. Tax policy should encourage certain desirable behaviours, and making needless trips into city centres that are of no benefit to the employee, employer or environment are not desirable behaviours.

A much more likely change is an overhaul of the capital gains tax system, which was proposed by the Office of Tax Simplification yesterday.

 

Suppose the key word there is 'choose'. My employer has said we cant go back into the office, possibly until next September. I'm also essentially out of pocket because of increased bills. I walk to work and know many in my office who walk/cycle, so there is no saving, rather there is more personal expenditure. It is what it is. To further tax people who have been told to work from home would be very harsh imo.

 

I agree wholeheartedly 100%

 

https://www.weforum.org/great-reset/

So we have the Great Reset wanting to make the world a greener place and having Prince Charles as part of it who's been all about the environment for decades long before it became the popular thing to do. Yet those people who are cutting back on travel, reducing their footprint and helping battle global warming are to be punished? What an insane idea.

 

no idea buddy, I'm just quoting and working from the article provided

 

given how everyone has been scared off/told not to travel/use public transport etc cars are now seen as a nesscessity and useage wont go down anytime soon!

 

There are also potential insurance issues. For bizarre reasons some insurance companies insist you notify them that you are working from home as it may impact exposure to 'risk' Since the house is not left unoccupied for as long as it would be if the occupants worked elsewhere then I can only see it as a 'plus' although some insures will use any excuse to 'hike' the premiums. Public liability may become an issue if 'work' from home (notwithstanding current Covid restrictions) means you may have visitors for business purposes even occaisonally. Likewise with mortgage lenders. Does it become a business premises if you have a home office and declare your principal place of work is your home address? How about Council tax? Does it become a business premises (maybe not now but what about if many people are doing the same?
As regards £7 per day, the costs savings of travel etc are offset by heating and lighting especially in winter months when the C. heating would normally be off during the day and come on early evening and for a short time early morning. I can understand people with long commutes in the South would save a fortune on rail season tickets and travel costs to and from a regular place of work are not tax deductable expenses.
I see it is a bank suggesting this (great way of passing costs to the employee and increasing profits) under the guise of helping the economy and low paid.

 

The tax idea is madness and doesn't have any merit. I get paid the same if I travel or don't. My salary doesn't factor in travel in anyway what so ever.

How many days are lost to sickness? How many folk this year working from home have taken a sick day? The numbers have massively reduced. I've seen evidence from within 5 major government departments where sickness levels outside of covid and life threatening / life changing ailments are almost non existent.

 

I have lived and worked all my life in Penistone. I am currently working from home 4 out of 5 days. It is costing me more to work from home, but can currently claim a bit of tax back. I realise I'm in the minority, but they can smeg off if they think I'm going to pay more to work from home.

 

I agree with you, it's not right taxing the working man again

 

Ah, Deutsche Bank - stupid enough to lend to Trump. Stupid enough to come up with this nonsense.

 

That needs adding to their next big glossy promo

 

The easiest and most sensible thing to do is to increase tax on those in society who can afford to pay a bit more.

 

What about those companies that are making millions who also benefit from people working from home by having to provide less office space?

 

Very true, or they could go by bicycle... Norman Tebbit was almost right.

 

If companies can afford to pay more then they should do so. If individuals can afford to pay more then they should (dependant on relative income levels and tax banding). If people can't then in whatever circumstances they are they should not be asked for more. The idea about taxing home working seems ill thought out and not progressive at all to me. I may have misread or misconstrued it but it seems 'bolt on' and illogical on the face of it.

 

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They wont. No matter how many cycling lanes they force out.

 

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The money could be used to fund subsidies for lower-paid workers who are not able to carry out their jobs from home.

yer avin a larf.

 

Proper annoys me that say anyone earning like that report says £35k per year should be taxed about £7 per day just so grants can be given to people under 25. It's like saying nobody over the age of 25 has worked hard enough to justify a salary so we should give hand outs to those under 25.

Now I left school and did a YTS taking home £29.50 for the week, no additional help. That was for a 37.5 hour week so got by on 78p per hour in 1993. Worked hard and progressed my career.

According to google £1 from 1993 would be worth £1.73 with inflation..

So these people earning £6.45 per hour at 18 on an apprenticeship (modern day YTS) are laughing. If it was just based on inflation the 78p per hour they would be getting £1.35 per hour.

I'm not saying £6.45 is correct by the way. I'm a firm believer that if there is a minimum living wage then regardless of age, you should earn this as a minimum otherwise surely you cannot support yourself. If the masses can support themselves on a lower wage, then the living wage is set too high etc.

Think we had a good discussion a while back on a government paying everyone with a universal basic income, but I don't think it is affordable when you get to the fine detail. Don't think any country runs any such scheme. Finland did but scrapped it as a failure.