Public service pension offer aims for fairness
As longevity has increased costs for public service pensions, the Government intends to reform the system to ensure their provision whilst easing the financial burden for other taxpayers.
The Treasury sets out the preferred scheme design for public service pensions in 'Public Service Pensions: Good Pensions that Last’ (Cm. 8214), built on points made by Lord Hutton in his report 'Independent Public Service Pensions Commission: Final Report’.
Budget for 2011 promotes growth and fairness
The ‘Budget 2011’ (HC 836) comprises of goals to encourage sustainable growth and deliver fairness by rebalancing the economy.
The document focuses on plans to reform the tax, benefit and pensions system to become the most competitive in G20 with positive effects evenly shared across the country.
Treasury Committee recommends new tax policy approach to encourage growth
The prospect of a more predictable, stable and simplistic tax policy system proposed by the Government would be beneficial but should be outlined fairly.
In the report 'Principles of Tax Policy’ (HC 753), the Committee attempts to identify underlying values for tax policy and considers how they could best support growth as the Government has not done enough to clarify this.
M25 private finance contract was mishandled
In May 2009 the Highways Agency signed a 30 year private finance contract for widening two sections of the M25 motorway, including the Dartford Crossing, and maintaining the entire 125 mile length of the road, and 125 miles of connecting roads and motorways.
The Committee of Public Accounts carried out a full review of the private finance contract in the report, 'M25 Private Finance Contract' (HC 651).
Rise in State Pension age will happen earlier as life expectancy increases
The State Pension age will increase to 66 for both men and women six years earlier than originally stipulated as a result of longevity, as detailed in 'A Sustainable State Pension: When the State Pension Age will Increase to 66’ (Cm. 7956).
Since the first contributory pension was introduced in 1926, significant demographic changes have occurred in the UK. More people are reaching 65 than before and therefore, the Government has made a well-informed decision to bring forward the rise in State Pension age from 2026 to 2020.
Department proposes national pension scheme to encourage employee enrolment
The Department for Work and Pensions (DWP) has investigated whether a new national pension scheme should be implemented for employees aged from 22 to state pension age to contribute to.
The report 'Making Automatic Enrolment Work’ (Cm 7954) details that between 2012 and 2016, all employers will select a pension scheme (National Employment Savings Trust or NEST) for all of their employees who fall into the designated age group to be automatically enrolled, providing they are earning above an annual earnings threshold.
Public service pension offer aims for fairness
As longevity has increased costs for public service pensions, the Government intends to reform the system to ensure their provision whilst easing the financial burden for other taxpayers.
The Treasury sets out the preferred scheme design for public service pensions in 'Public Service Pensions: Good Pensions that Last’ (Cm. 8214), built on points made by Lord Hutton in his report 'Independent Public Service Pensions Commission: Final Report’.
Report highlights need for Department interaction with tax agents
HM Revenue & Customs (HMRC) should communicate effectively with intermediary third parties for customers to receive accurate tax returns.
In the report, ‘Engaging with Tax Agents: HM Revenue & Customs’ (HC 486), the National Audit Office (NAO) identifies the importance of tax agents as it has been estimated that around eight million taxpayers receive help to file income and corporation tax returns each year.
HM Revenue and Customs take considerable steps to improve National Insurance administration
As detailed in ‘The Efficiency of National Insurance Administration: HM Revenue & Customs’ (HC 184), by reducing staff, HM Revenue and Customs (HMRC) have made significant progress to improve the efficiency of National Insurance administration.
There were 1,200 National Insurance (NI) administration staffing reductions in the period of 2009-10, which has encouraged wider savings targets set by the Spending Reviews of 2004 and 2007.
Older people tax payment errors examined
In this report, 'Dealing with the Tax Obligations of Older People: HM Revenue and Customs (HC 961)', the NAO finds that a significant number of older people pay too much or too little tax. Errors occur because many people's tax affairs become more complicated when they reach pension age and HMRC's systems do not cope well with their multiple sources of income.
Child and Working Tax Credits system
criticised
‘Tax Credits: Getting it Wrong?’ (HC 1010) is a Report from the
Parliamentary and Health Service Ombudsman, looking into the Child and Working
Tax Credits system.
Business rate supplements proposed
‘Business
Rate Supplements: A White Paper’ (Cm. 7230) sets out the Government's
proposal to introduce a power for local authorities and the Greater London
Authority (GLA) to raise and retain local supplements on the national business
rate.
Council Tax benefit system “unfair” for
poorest
This Report
'Local
Government Finance: Council Tax Benefit' (HC 718-I) says that the current
council tax relief system is unfair for low income households.
Tax assessment correct in 95% cases
'Accuracy
in Processing Income Tax' (HC 605) examines the accuracy of HM Revenue and
Customs (HMRC) in processing Self Assessment Tax forms and the 'Pay As You
Earn' (PAYE) scheme for Income Tax.
In 2006-07, HMRC collected £149
billion in Income Tax, dealing with the tax affairs of some 36 million
taxpayers. In total, £125 billion was collected via employers through the PAYE
scheme, and £24 billion from self-employed people and others with additional
income through the Tax Self Assessment. The HMRC needs to spend about £1.7
billion per year in administering Income Tax, with the processing taking place
across 300 offices.
Progress in tackling pensioner poverty
This Report from the House of Commons Committee of Public
Accounts
‘Department
for Work and Pensions: progress in tackling pensioner poverty - encouraging
take-up of entitlements’ (HC 169 2006-07) examines efforts by the
Department for Work and Pensions (DWP) to increase the take-up of benefits by
pensioners and looks at the reasons for unclaimed entitlements, the progress
that has been made in encouraging the take-up of benefits since 2003 and the
scope for further improvement.
Tax credits criticised
The current tax credit system was introduced in April 2003
with the aim of helping families with children and working people on low
incomes. Despite its aims, the tax credit system suffers from the highest rate
of error and fraud in government.
This Report,
'Tax
Credits' (HC 487), is the Public Accounts Committee's fourth report on the
system.
Understanding tax forms
Each year up to 10 million taxpayers contact the HM Revenue
and Customs (HMRC) for help with their tax affairs and the Department spends
£35 million on producing and distributing printed information and £55 million
dealing with contacts.
Income Tax Act 2007
The
'Income
Tax Act 2007' is an Act to restate, with minor changes, certain enactments
relating to income tax. The Act received Royal
Assent on 20 March 2007.
The main purpose of the Income Tax Act 2007 is to rewrite income tax
legislation to make it clearer and easier to use.
Two new Council Tax bands proposed
The
'Lyons
Inquiry into Local Government' examines the function of local government
and considers the case for changes to the present system of local government
funding in England.
Security in Retirement: Responses to the
consultation process
Over the next 50 years, demographic changes will mean only
two people in employment for every one person in retirement. The UK pensions
system needs to be reformed to ensure long-term sustainability.
Proposals to reform private pensions
It is estimated that around seven million people are currently not saving enough to support themselves in retirement.