Wednesday 28 May 2008

Tax free allowances

Just been thinking about the idea of MP’s getting a £23k tax free expense allowance. What an excellent idea. The company I work for could adopt a similar system. Indeed all companies could, thereby reducing internal administration (no receipts required) and making the company more competitive by reducing the employers NI currently paid on salaries. Also, since the allowance would be tax free there could be a cut in those salaries. (Admittedly there would be no increased competiveness against other UK companies if all adopted this system, but there would still be a gain against foreign competitors.)

I know, I’ll drop the treasury an e-mail asking how such a scheme can be set up. I wonder what the response will be.

Update

I’ve sent the below to the Treasury and No 10 Downing St.

"I understand that there is a proposal that MP’s be given a tax free allowance of £23,000 per annum and that no receipts would be required to justify expenditure to this limit. The company for which I work is interested in setting up a similar scheme. Please could you send me details of how such a scheme would operate. Obviously given the principle of equality under the law such a scheme cannot be restricted to MP's alone."

1 comment:

Francesca Preece said...

Hello Nick, many thanks :)

Do let TTG know if you get a reply.