Latest news with #Neidle
Yahoo
23-05-2025
- Business
- Yahoo
Labour-supporting tax expert slams Rayner's raid on taxpayers
A Labour-supporting tax campaigner has slammed Angela Rayner's proposals to reintroduce the lifetime allowance and freeze the top rate of tax threshold. The influential tax expert Dan Neidle said a number of the tax rises contained in Ms Rayner's leaked memo could deter investment in UK companies and undermine 'the progressivity of the tax system'. He also questioned whether some of the proposals could raise as much as the Deputy Prime Minister had suggested. The Telegraph revealed on Tuesday that Ms Rayner sent a secret memo urging Rachel Reeves to raise taxes instead of cutting spending. Mr Neidle is the founder of think tank Tax Policy Associates and also a member of Labour, however he has been critical of the party's policies in the past. The tax lawyer said that half of Ms Rayner's proposals 'make sense from a policy perspective', including closing the commercial property stamp duty loophole and removing inheritance tax relief on Aim shares. However he poked holes in some of the calculations on her memo. For example, he told The Telegraph that closing the stamp duty loophole for commercial property could raise anywhere between £700m or £2bn, as opposed to the estimate of £1bn cited in Ms Rayner's memo. In addition, scrapping inheritance tax relief on Aim shares would probably raise only a tenth of the £1bn figure mentioned by Ms Rayner, he wrote in an article for Tax Policy Associates. In the same article, Mr Neidle criticised Ms Rayner's proposal to reintroduce the lifetime allowance, a £1.07m cap on how much someone could save into their pension over their lifetime without incurring a tax charge. The cap was abolished by the Conservative government because it encouraged doctors to work fewer hours in order to avoid a huge tax bill. Mr Neidle said: 'These problems haven't gone away, and so it seems unlikely Labour is about to change its mind about changing its mind on the lifetime allowance.' Ms Rayner also proposed extending the freeze on the additional rate tax threshold beyond 2028, when it is currently set to rise in line with inflation. This would result in a larger number of workers paying 45pc tax as their wages crossed the £125,140 earnings threshold. Mr Neidle pointed out that the additional rate threshold was already much lower than it had been in recent years. For example, in 2009 the additional rate threshold stood at £150,000 – worth £240,00 in today's money. Mr Neidle wrote: 'Freezing tax thresholds is not good tax policy. It's a large tax increase, but a hidden one. It undermines the progressivity of the tax system to have the highest rates paid by more and more people. And it doesn't affect the seriously rich, just the moderately high-earning.' Mr Neidle also said the case for raising rates on dividend tax – another of Ms Rayner's proposals – was 'not persuasive'. Ms Rayner has pressed the Chancellor to align the higher and additional rates of dividend tax with those of income tax. As a result, a higher earner would pay 40pc tax on dividend income as opposed to the current rate of 33.75pc, while an additional rate taxpayer would see the charge jump from 39.35pc to 45pc. Mr Neidle said the UK's dividend tax rate was already 'one of the highest' in the Organisation for Economic Co-operation and Development (OECD) and warned that increasing it could deter investors. He wrote: 'We want to encourage people to invest in companies, and too high a rate of dividend tax won't do that.' The Deputy Prime Minister and the Cabinet Office were approached for comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
23-05-2025
- Business
- Yahoo
Labour-supporting tax expert slams Rayner's raid on taxpayers
A Labour-supporting tax campaigner has slammed Angela Rayner's proposals to reintroduce the lifetime allowance and freeze the top rate of tax threshold. The influential tax expert Dan Neidle said a number of the tax rises contained in Ms Rayner's leaked memo could deter investment in UK companies and undermine 'the progressivity of the tax system'. He also questioned whether some of the proposals could raise as much as the Deputy Prime Minister had suggested. The Telegraph revealed on Tuesday that Ms Rayner sent a secret memo urging Rachel Reeves to raise taxes instead of cutting spending. Mr Neidle is the founder of think tank Tax Policy Associates and also a member of Labour, however he has been critical of the party's policies in the past. The tax lawyer said that half of Ms Rayner's proposals 'make sense from a policy perspective', including closing the commercial property stamp duty loophole and removing inheritance tax relief on Aim shares. However he poked holes in some of the calculations on her memo. For example, he told The Telegraph that closing the stamp duty loophole for commercial property could raise anywhere between £700m or £2bn, as opposed to the estimate of £1bn cited in Ms Rayner's memo. In addition, scrapping inheritance tax relief on Aim shares would probably raise only a tenth of the £1bn figure mentioned by Ms Rayner, he wrote in an article for Tax Policy Associates. In the same article, Mr Neidle criticised Ms Rayner's proposal to reintroduce the lifetime allowance, a £1.07m cap on how much someone could save into their pension over their lifetime without incurring a tax charge. The cap was abolished by the Conservative government because it encouraged doctors to work fewer hours in order to avoid a huge tax bill. Mr Neidle said: 'These problems haven't gone away, and so it seems unlikely Labour is about to change its mind about changing its mind on the lifetime allowance.' Ms Rayner also proposed extending the freeze on the additional rate tax threshold beyond 2028, when it is currently set to rise in line with inflation. This would result in a larger number of workers paying 45pc tax as their wages crossed the £125,140 earnings threshold. Mr Neidle pointed out that the additional rate threshold was already much lower than it had been in recent years. For example, in 2009 the additional rate threshold stood at £150,000 – worth £240,00 in today's money. Mr Neidle wrote: 'Freezing tax thresholds is not good tax policy. It's a large tax increase, but a hidden one. It undermines the progressivity of the tax system to have the highest rates paid by more and more people. And it doesn't affect the seriously rich, just the moderately high-earning.' Mr Neidle also said the case for raising rates on dividend tax – another of Ms Rayner's proposals – was 'not persuasive'. Ms Rayner has pressed the Chancellor to align the higher and additional rates of dividend tax with those of income tax. As a result, a higher earner would pay 40pc tax on dividend income as opposed to the current rate of 33.75pc, while an additional rate taxpayer would see the charge jump from 39.35pc to 45pc. Mr Neidle said the UK's dividend tax rate was already 'one of the highest' in the Organisation for Economic Co-operation and Development (OECD) and warned that increasing it could deter investors. He wrote: 'We want to encourage people to invest in companies, and too high a rate of dividend tax won't do that.' The Deputy Prime Minister and the Cabinet Office were approached for comment. Sign in to access your portfolio
Telegraph
02-04-2025
- Business
- Telegraph
Frankie Dettori, the porn baron and a plummet into bankruptcy
Barely a month later – as Dettori was preparing to enter the I'm A Celebrity jungle – the fateful hearing took place that would eventually lead to his legacy in Britain cast to be in a different light. The published January 2024 judgment which followed that hearing came to the attention of Neidle after the Upper Tribunal found there had been 'material errors of law' in the First-tier Tribunal's September 2021 decision to grant Dettori anonymity. The ruling said he had obtained the benefit of privacy despite failing to produce 'any evidence of harm or prejudice', something that risked 'a blanket derogation from open justice by the back door'. Before he could be named, Dettori sought permission to appeal, ultimately triggering fresh Upper Tribunal proceedings in October. He also withdrew his 'substantive appeal' over HMRC's pursuit of him for unpaid taxes, leaving him liable for that money, come what may. After Neidle publicised the case, TPA and media including the Press Association, The Times and The Sun joined forces with HMRC to oppose his latest anonymity application. A judgment throwing out that application followed in November and – after a deadline for appealing that expired – Dettori was named on December 9. Bankruptcy 'will affect me for many years' On what happened between Dettori being named and his shock announcement on March 13 that he was filing for bankruptcy, the man himself has said very little. His statement that day said he had been 'working with HMRC in an attempt to find a solution to my financial situation'. He also said: 'Bankruptcy is a major decision and its consequences will affect me for many years. I am relieved to be drawing a line on this long-term matter, which enables me to reset and focus on my international riding career.' Dettori declined to respond to questions about the documents seen by Telegraph Sport, whether he had ever met or spoken to Baxendale-Walker, and why the pair had both employed the same law firm. That was after Neidle wrote on X: 'Amazing that Dettori/his advisers thought it was a good idea to buy a scheme from a struck-off solicitor and convicted fraudster who gave negligent advice and then went bankrupt.' Dettori also declined to comment on how much he owed HMRC when he went bankrupt. Neidle told Telegraph Sport it was likely to run into 'hundreds of thousands or millions', on top of a probably six-figure bill in legal costs the jockey would have amassed during his various appeals. Neidle also said that for someone as wealthy as Dettori to use the kind of tax-avoidance scheme linked to Baxendale-Walker would be 'really unusual because people like that normally have proper advisers'. An HMRC spokesman said: 'We take a supportive approach to dealing with customers who have tax debts and do everything we can to help those who engage with us to get out of debt, such as offering instalment plans.' Dettori, who relocated from California to Florida in February, has been back racing – and winning – since his bankruptcy was confirmed on March 17. According to the Insolvency Service Register, he will be automatically discharged on the same date next year. With the trustee of his bankruptcy certain to closely examine his assets and future income to see if they can be used to pay HMRC and any other creditors, the full impact of going bust on Dettori remains to be seen.
Yahoo
02-04-2025
- Business
- Yahoo
How tax rules our politics (and lives)
Tax lawyer and journalist Dan Neidle opened his series Untaxing (Radio 4) with two extraordinary statements. One, that he was going to show how tax is one of the most significant and consequential forces in our lives. Two, that Albert Einstein was wrong about tax when he said it was the most difficult thing in the world to understand. Far be it from me to argue about tax with a man who founded a think tank called Tax Policy Associates and who advises the Scottish Government (among others) on tax issues, but his first point hardly needs proving to anyone. Ever since we learnt the story of Robin Hood, we've known tax as a fifth element in our lives. As for Einstein, well, having listened ahead to all five episodes of Untaxing, I am tempted to agree with the physicist. Neidle's series makes our tax systems seem arcane, opaque, fantastical, occasionally deranged, often frustrating and always baffling. Despite that – or perhaps because of it – it's a terrific series, filled with anecdote and insight, that will leave you with the feeling you should pay far more attention to tax beyond your payslip, the Budget and the adventures of Little John et al. Monday's opener was all about a napkin – 'the napkin that changed the world' – and revealed both Neidle's ability to zero in on quirks of history that prove to be seismic and how ideology and politicking give tax a bad name. The napkin was on a restaurant table in Washington DC in 1974, and scribbling on it was a young economist named Arthur Laffer. Watching him doodle a graph, with ever-widening eyes, were White House officials Dick Cheney and Donald Rumsfeld. What the doodle 'proved' was that if you raise taxes too much, revenues will actually go down. Though disputed, the 'Laffer Curve' is still popular today – it is regularly cited by, among others, Liz Truss, while in 2019 Donald Trump awarded Laffer the Presidential Medal of Freedom, referencing the famous napkin. The napkin is a Shroud of Turin for those who seek low taxation, but tax ideology works both ways. Recently, the Scottish Government raised the top rate of income tax to 48 per cent, which some believe will scare off higher earners and lead to less revenue. And what did Neidle and his colleagues at the Scottish Government's Tax Advisory Group have to say about this? 'Nothing,' said Neidle. 'Because they didn't ask us. It was pure politics.' More tax theory drawn up on the back of napkins. Yesterday delved into the murky story of the Beatles' inventive but ultimately flawed efforts to avoid income tax (surely Eleanor Rigby would have benefited from some of their revenues?), a tale that ultimately ended in Michael Jackson selling the rights to Lennon & McCartney's songs to pay his own tax bill. Today's episode is on Jaffa Cakes, tomorrow's on a porn-star lawyer who played a part in the downfall of Rangers Football Club. Neidle cherrypicks the minutiae expertly. The overall impression is of the British tax system as a towering, teetering, rickety old building, with extension built upon extension, and all sorts of oddities lurking in the basement. Five 15-minute episodes isn't nearly enough – I hope Radio 4 have Neidle back soon. Also managing to be riveting on an ostensibly dry economic subject was Invisible Hands (Radio 4), which is looking at the birth of the free market. That it's so compelling is no surprise, given that the man behind it is David Dimbleby, who shares Neidle's ability to extrapolate world-changing ideas from the smallest of moments. This first episode, for instance, found the origins of the free market in the downing of a Hurricane fighter plane in August 1940, the Egg Marketing Board and a copy of the Reader's Digest. Jo Barratt's production had the swing and sway (and the background music) of a juicy true-crime podcast, with Dimbleby gamely showing he could mix it with the young pups of podcasting. Here, it's all about storytelling. 'It turns out it's a much stranger story than you can imagine,' began Dimbleby, as the music grew more insistent. It's shameless, but I was hooked. And when that Reader's Digest came along, Dimbleby introduced it like this: 'A magazine that would change the course of Antony Fisher's life… and the history of this country – forever.' He even gave us the little details – in that edition, alongside the all-important article The Road to Serfdom by Friedrich Hayek, were pieces on 'strange animal friendships, the beard of Joseph Palmer and shepherds of the underground', a list of subjects that would fit quite pleasingly into Radio 4's schedules. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
02-04-2025
- Business
- Telegraph
How tax rules our politics (and lives)
Tax lawyer and journalist Dan Neidle opened his series Untaxing (Radio 4) with two extraordinary statements. One, that he was going to show how tax is one of the most significant and consequential forces in our lives. Two, that Albert Einstein was wrong about tax when he said it was the most difficult thing in the world to understand. Far be it from me to argue about tax with a man who founded a think tank called Tax Policy Associates and who advises the Scottish Government (among others) on tax issues, but his first point hardly needs proving to anyone. Ever since we learnt the story of Robin Hood, we've known tax as a fifth element in our lives. As for Einstein, well, having listened ahead to all five episodes of Untaxing, I am tempted to agree with the physicist. Neidle's series makes our tax systems seem arcane, opaque, fantastical, occasionally deranged, often frustrating and always baffling. Despite that – or perhaps because of it – it's a terrific series, filled with anecdote and insight, that will leave you with the feeling you should pay far more attention to tax beyond your payslip, the Budget and the adventures of Little John et al. Monday's opener was all about a napkin – 'the napkin that changed the world' – and revealed both Neidle's ability to zero in on quirks of history that prove to be seismic and how ideology and politicking give tax a bad name. The napkin was on a restaurant table in Washington DC in 1974, and scribbling on it was a young economist named Arthur Laffer. Watching him doodle a graph, with ever-widening eyes, were White House officials Dick Cheney and Donald Rumsfeld. What the doodle 'proved' was that if you raise taxes too much, revenues will actually go down. Though disputed, the 'Laffer Curve' is still popular today – it is regularly cited by, among others, Liz Truss, while in 2019 Donald Trump awarded Laffer the Presidential Medal of Freedom, referencing the famous napkin. The napkin is a Shroud of Turin for those who seek low taxation, but tax ideology works both ways. Recently, the Scottish Government raised the top rate of income tax to 48 per cent, which some believe will scare off higher earners and lead to less revenue. And what did Neidle and his colleagues at the Scottish Government's Tax Advisory Group have to say about this? 'Nothing,' said Neidle. 'Because they didn't ask us. It was pure politics.' More tax theory drawn up on the back of napkins. Yesterday delved into the murky story of the Beatles ' inventive but ultimately flawed efforts to avoid income tax (surely Eleanor Rigby would have benefited from some of their revenues?), a tale that ultimately ended in Michael Jackson selling the rights to Lennon & McCartney's songs to pay his own tax bill. Today's episode is on Jaffa Cakes, tomorrow's on a porn-star lawyer who played a part in the downfall of Rangers Football Club. Neidle cherrypicks the minutiae expertly. The overall impression is of the British tax system as a towering, teetering, rickety old building, with extension built upon extension, and all sorts of oddities lurking in the basement. Five 15-minute episodes isn't nearly enough – I hope Radio 4 have Neidle back soon. Also managing to be riveting on an ostensibly dry economic subject was Invisible Hands (Radio 4), which is looking at the birth of the free market. That it's so compelling is no surprise, given that the man behind it is David Dimbleby, who shares Neidle's ability to extrapolate world-changing ideas from the smallest of moments. This first episode, for instance, found the origins of the free market in the downing of a Hurricane fighter plane in August 1940, the Egg Marketing Board and a copy of the Reader's Digest. Jo Barratt's production had the swing and sway (and the background music) of a juicy true-crime podcast, with Dimbleby gamely showing he could mix it with the young pups of podcasting. Here, it's all about storytelling. 'It turns out it's a much stranger story than you can imagine,' began Dimbleby, as the music grew more insistent. It's shameless, but I was hooked. And when that Reader's Digest came along, Dimbleby introduced it like this: 'A magazine that would change the course of Antony Fisher's life… and the history of this country – forever.' He even gave us the little details – in that edition, alongside the all-important article The Road to Serfdom by Friedrich Hayek, were pieces on 'strange animal friendships, the beard of Joseph Palmer and shepherds of the underground', a list of subjects that would fit quite pleasingly into Radio 4's schedules.
