[Metrobeans]

B434 - Tax Interest Parity Bill 2012, TSR Libertarian Party

Tax Interest Parity Act 2012

An Act stopping businesses and self-employed losing interest payments due to being overcharged by HM Revenue and Customs.

BE IT ENACTED by The Queen's most Excellent Majesty, by and with the advice and consent of the Commons in this present Parliament assembled, in accordance with the provisions of the Parliament Acts 1911 and 1949, and by the authority of the same, as follows:-

Part I: Interest Rates
1 Interest On Tax
(1) The interest rate for all money either owed to, or owed by Her Majesty's Revenue and Customs is the same as the Bank of England official bank rate plus eight percent.

Part II: Miscellaneous
2 Short Title
(1) This act may be cited at the Fair Interest Act 2012

Notes

Currently HM Revenue and Customs have control over the levels of interest payable on tax both by those owing them money, and money they owe businesses and the self-employed as over-charge separately. This can lead to grossly unfair situations such as the following:

http://www.timesonline.co.uk/tol/mon...cle5561148.ece

Businesses and the self-employed thus lose their own interest payments due to being overcharged by HR Revenue & Customs, with no compensation, effectively creating a tax emposes unchecked by the Revenue. The opposite situation involves them paying interest to the Revenue. The bill seeks to adress this imbalance.

Changes

First -> Second Reading: Interest rate changed from base rate to (base rate + 8%). This is to disincentivise delays on either payment of tax, or on repayment of taxpayers.

[jesusandtequila]

(Original post by Metrobeans)
x

Error in the changes section, should say (base rate + 8%) not (base rate + 10%), just me being dopey, just spotted it.

[Metrobeans]

(Original post by jesusandtequila)
Error in the changes section, should say (base rate + 8%) not (base rate + 10%), just me being dopey, just spotted it.

Fixed.

[JPKC]

Times £-wall on the link.
Aye.

[Rakas21]

Why 8% specifically?

[jesusandtequila]

(Original post by Rakas21)
Why 8% specifically?

It's somewhere in the region between what HMRC usually charged and what they charged the highest taxpayers.

[Rakas21]

Fair enough, just a shame HMRC do not give you the information to be able to calculate what this may raise.

That said, it shall be an aye from me.

[cl_steele]

aye

[tehFrance]

Woah it has gone up... can't support a rise.

[jesusandtequila]

(Original post by tehFrance)
Woah it has gone up... can't support a rise.

The point is to bring it level with both under and overpayment. So where HMRC owes money, now they will be paying 8.5% instead of the 0% they pay now. The rate that we pay is in roughly the same region (currently 6.5-13.5pc - changed to 8.5pc)

[meenu89]

Aye.

[Mechie]

It would help if links were posted to sites that you don't have to pay for.

I can't really understand what problems this brings up fully from your descriptions, I'd like to see an example where this bill would help. Of course you've provided one, but it's not very helpful that it's from a site you have to pay for.

[MacDaddi]

(Original post by davidmarsh01)
It would help if links were posted to sites that you don't have to pay for.

I can't really understand what problems this brings up fully from your descriptions, I'd like to see an example where this bill would help. Of course you've provided one, but it's not very helpful that it's from a site you have to pay for.

Does it really need another example?

Or do you want it in big, colourful writing with pictures?

[Mechie]

(Original post by MacCuishy)
Does it really need another example?

Or do you want it in big, colourful writing with pictures?

I haven't currently seen an example. As I've made it clear in my post, I don't pay for Times online, therefore I can't see the example provided. It's been described, but I feel I'd understand better if I was given a real life example that I could actually see.

Your attitude in this post is frankly utterly appalling.

[MacDaddi]

(Original post by davidmarsh01)
I haven't currently seen an example. As I've made it clear in my post, I don't pay for Times online, therefore I can't see the example provided. It's been described, but I feel I'd understand better if I was given a real life example that I could actually see.

Your attitude in this post is frankly utterly appalling.

It's simple, you don't need examples. Interest rates at which you pay back money because the HMR&C MISCHARGED you should be the ones set by the Bank of England.

[Mechie]

(Original post by MacCuishy)
It's simple, you don't need examples. Interest rates at which you pay back money because the HMR&C MISCHARGED you should be the ones set by the Bank of England.

Well seeing as an example has been provided in the notes of this bill, it's obvious that the author of the bill has recognised that an example may help people to understand. I can't see this example, and as the author of this bill has provided an example, presumably in order to help people understand (why else?), I'd like to see an example, as intended by the author of the bill. Anyhow, who are you to say I don't need an example? If an example would help me understand what this bill is addressing then one should be provided (that I can actually see) by the author of the bill in order to try and win my vote.

[MacDaddi]

(Original post by davidmarsh01)
Well seeing as an example has been provided in the notes of this bill, it's obvious that the author of the bill has recognised that an example may help people to understand. I can't see this example, and as the author of this bill has provided an example, presumably in order to help people understand (why else?), I'd like to see an example, as intended by the author of the bill. Anyhow, who are you to say I don't need an example? If an example would help me understand what this bill is addressing then one should be provided (that I can actually see) by the author of the bill in order to try and win my vote.

I'm sorry, but I would be unable to provide you with an example.

Be sure to ask other members of the party though if you don't understand how it works, because i'm not an economicsy person.

[Mechie]

(Original post by MacCuishy)
I'm sorry, but I would be unable to provide you with an example.

Be sure to ask other members of the party though if you don't understand how it works, because i'm not an economicsy person.

That's cool. I'm sore someone else in the Libers will see what I've said. I'm not really an economicsy person either, and although I can sort of see what this bill is trying to do, I feel an example would help me to more fully understand the issue to come to a more informed decision.

[jesusandtequila]

(Original post by davidmarsh01)
That's cool. I'm sore someone else in the Libers will see what I've said. I'm not really an economicsy person either, and although I can sort of see what this bill is trying to do, I feel an example would help me to more fully understand the issue to come to a more informed decision.

Quite simply, your examples are all those who have underpaid or overpaid tax ever.

Essentially, this is more to do with the principle that the interest rate you get charged on underpaid tax is the same as the interest rate you get when you have overpaid. It also incentivises HMRC to act quicker with regards repayment of tax, so we'll see a more efficient HMRC that screws people over less.

[Metrobeans]

This is in cessation.