Would The Tories Scrap Paye If Elected?

A recent article has suggested that radical tax reforms are being planned by the Conservatives that would see the biggest changes to the way income tax is collected for more than six decades.

The Tories are developing a pilot for a new automated bank-based system that would remove the responsibility of deducting and paying income tax from employers.

It is believed the proposed new system could save businesses up to £5.5 billion and increase revenues to the Exchequer by £1 billion.

Employers would no longer be responsible for processing different tax codes and pay income tax for employees. The new system would automatically deduct income tax and National Insurance contributions (NICs) directly from an employee’s gross pay as it is paid into their bank account.

The Tories said the plans were drawn up in response to the increasing failures of the current tax system.

PAYE was introduced in Britain in 1944 and more than 65 years later most taxpayers have both their income tax and NICs deducted at source by their employers.

Only time will tell if this report is true – watch this space.

By: Webbie

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