UK tax collection agency wants all paychecks to go them first

Well, this sounds utterly terrifying:

The UK’s tax collection agency is putting forth a proposal that all employers send employee paychecks to the government, after which the government would deduct what it deems as the appropriate tax and pay the employees by bank transfer.

The proposal by Her Majesty’s Revenue and Customs (HMRC) stresses the need for employers to provide real-time information to the government so that it can monitor all payments and make a better assessment of whether the correct tax is being paid.

Currently employers withhold tax and pay the government, providing information at the end of the year, a system know as Pay as You Earn (PAYE). There is no option for those employees to refuse withholding and individually file a tax return at the end of the year.

Who even thinks this kind of idea is acceptable? The idea that the government has first crack at everything you earn is not just Orwellian, but it would massively increase the non-taxable, underground economy.

Beltway ConfidentialEnglandTaxes and SpendingUS

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