In my previous article, "More Work, More Reward - A Secondary Personal Taxation Allowance For Supplementary Income". I put forward a recommendation for a secondary personal taxation allowance for a second occupation. In other words one job equals one personal taxation allowance, two jobs equals two personal taxation allowances.
The proposal was put forward in an effort to expand the level of output within the economy without diminishing the existing taxation intake, which is needed to pay off the extremely high level of national debt. I suggested this method as the UK economy is very constrained on a macroeconomic level and explained the limits of the existing economic controls.
However since writing the article the topic of pay disputes has come about and may also be resolvable through the supplementary income personal taxation allowance, enabling another income to be brought into a household. In short it could solve the two problems with one policy. There are some issues with the concept that could be overcome or compensated for.
The first issue arises from people who already have two occupations qualifying for the secondary personal taxation allowance, leading to a loss of taxation intake. Although taxation intake will decrease from some workers, compensation will be provided by the economic expansion the taxation break generates. Indirect taxation will be taken from the new growth.
The second issue is the impact on benefit income. Assuming income increases from the new secondary personal taxation allowance the benefit income which the individual receives could be reduced. I resolve this by taking the income from the secondary occupation out of the benefit means test calculation, until it exceeds the personal taxation allowance.
The third issue is time and the ability of someone in an existing form of work to enter a secondary occupation. I resolve this issue by the suggestion in the title of this article, a co-operative of efforts and personal taxation allowances, by sharing the work and joining their secondary personal taxation allowances a, "Supplementary Income Co-operative".
The introduction of a new form of organisation which can operate as a business and going concern. Where all members of the Co-operative have to be in existing occupation or would have to leave the firm, if they cease being in primary occupation, at the end of the taxation year. Exclusion due to their loss of the secondary personal taxation allowance.
Assume 10 people are in the Co-operative and they receive equal ownership, share rights and profits they will be able to collectively earn £115,000 per annum tax free. What an investment opportunity for the members and any potential lenders. It pools resources, shares the work load, offers flexibility and enables large scale operations to be established.
By offering this opportunity of tax free part time work to the existing labour market, the income generated would help to resolve many of the problems with pay disputes. It would also help the economy to recover without impacting the existing taxation intake, which is necessary to maintain due to the staggering national debt requiring repayment.Suggest a correction