Scribd Upload Letter To Esther McVey

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To: Rt Hon Esther McVey Secretary of State for Work and Pensions.
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Sunday , 13 May 2018
I am freelance macroeconomist and develop new tools to improve processes and make
efficiencies. I have been devising new methods of improving the ability of enabling business,
involving making the accounting process clearer and easier for new start ups in particular.
I have large plans for the UK economy through 'New Product Development' involving the
government. I hope to improve the processes and services the government provides to market
them to foreign interests. I have enclosed a couple of articles explaining my ambitions.
Once developed these improvements can then be sold to various markets around the world,
generating an income for the government to reduce the enormous deficit. I put forward a
suggestion for a product derived from a limitation in the accounting process I noticed, below.
There is a limitation in the accounting process, which does not deal with an inhibiting factor
in the act of making transactions and recording the event. There is a gap in the market to
provide a method of handling this problem, both on a business and financial reporting level.
I believe I can provide a solution to the problem. If so, a new product range can be developed
and income could be generated from its sales. The process could be regulated and licensed
offering the possibility of expanding to overseas markets, bringing in money from abroad.
I need the government to provide authenticity to the process. I am willing to share the profits
with the DWP. If you wish to discuss the proposal communication regarding the contract, of
ownership and use rights, would need to proceed. If you are interested reply accordingly.
On another note to the above letter: I have enclosed a paper called the 'SASI', which may
help with pay disputes. This has apparently become a hot topic, which I predicted it would
when writing the paper. It may also help to increase economic growth and control inflation.
Kind Regards. T
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Peter James Rhys Morgan. I T ´ S A B O U T B A L A N C E
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PJR Morgan Website: http://morganisteconomics.blogspot.co.uk/ L J O
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Reinvention and Innovation Are Key for Economic Recovery.
Published at the Huffington Post. 01/04/2015 16:00 BST.
By Peter Morgan.
As time goes by technology improves with the intention of providing better product
performance and function or the same product performance and function at a lower price.
Everyday products like the plughole, the light bulb and even the carrier bag need updates and
upgrades. The existing market for everyday products is vast and perpetual.
Penetration of this market is fairly simple, come up with a good redesign idea that will make
the product perform or function better, or a way to manufacture the original product cheaper,
and then patent it. The existing market will buy the new product if it functions better, or is
available at a lower cost assuming function is equal, in place of the original product.
This form of 'Old Product Development' that maintains an existing consumer market could
turn an economy around, especially if innovation and new technology is added to the mix. By
patenting new materials further improvement could be given to the product, which would
make it attractive to the existing consumer market.
For example a new material which prevents rain leaving a stain on windows, or a new metal
alloy which illuminates a filament in a light bulb for longer before burning out, could offer an
increased utility value to the product that consumers will be interested in obtaining. As long
as the price is competitive with the previously available products the market is there.
If there is an existing enterprise that manufactures a product which meets the needs of the
'Old Product' market, they might be willing to buy out the patent of a redesign or innovation
idea to prevent the threat of competition. The new idea or innovation will not go into
production but the designer or innovator will gain funds for future projects.
The obstacle in the way of this approach to economic turn-around is the cost and enforcement
of patents. This may not be available to individuals who come up with redesigns and
innovations. If the government was to set up a patent funding and support scheme it could
reform the country's economic turmoil.
The government could also benefit on a financial level, not just an economic level, by
agreeing on terms where they receive a percentage of any profits made by paying for patents.
Alternatively they could agree with the entrepreneur to maintain tax nationality with the UK
and not attempt to get around tax policy in exchange for funding the project.
PJR Morgan Website: http://morganisteconomics.blogspot.co.uk/

Copyright © Peter James Rhys Morgan 2018.
'New Product Advancement'. New product developments deliver more than just
products - They're innovation and advancement projects too!
Published at Morganist Economics.
By Peter Morgan.
22:47 10/05/2018.
New product development doesn't just deliver a new product it provides new advancements,
innovations and designs too. Investment in advancements of technology and infrastructure
will provide upgrades of the existing products and services. The product in itself is only part
of the gain the advancements in design, function and technology are marketable too.
New patents in design, function and manufacturing processes can be developed to bring in an
additional income to the sale of the initial product. Manufacturers may also benefit from new
production processes and technologies, that could increase output and reduce the cost of
construction operations. The quality, look and function of products may also improve.
A new product provides upgrades, a new market for state of the art goods, new designs, new
functions and new manufacturing processes and techniques. The overall income from the
project has many streams expanding into many markets. The benefits received from the
advancements used to get the product to market are significant and can lead to efficiencies.
Using existing products will not generate new designs or functions you only get what the
existing product can give you. Although new materials or new manufacturing methods could
be used to improve the existing product, new product development is needed to provide them.
New products make modern advancements all products can benefit from, old products don't.
An old product's overall gain and income stream is limited in comparison to a new product's,
which is vast. Old products don't make new markets and advancements. The improvements
and efficiencies they provided have already been introduced and implemented into the
manufacturing process. Any cost efficiencies received will have already been utilised.
By developing new products instead of using the existing products in the market it would be
possible to maximise income sources and in turn increase profits. This does happen naturally
in the free market. However in the UK the government is half the size of the economy. If the
British government developed new products it could maximise profits and cut the deficit.
The new products and services developed in the UK could be sold or licensed for use in other
countries. The British government could make money and efficiencies would be seen around
the world. Expansion of trade with other nations should also improve international relations
and stabilise global interests. Britain needs to be a leader in 'New Product Advancement'.
In my previous article, "Reinvention and Innovation Are Key for Economic Recovery". I
suggested the British government should set up a patent scheme with the free market. It may
be worth starting a governmental new product advancement programme, perhaps by updating
their operations, to generate income to turn the British government into a going concern.
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To: Rt Hon Philip Hammond MP, Chancellor of the Exchequer.
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Monday, 29 January 2018
I am a freelance macroeconomist. I develop new tools and policies, with the aim of providing
cost efficiencies. I work cross party, communicating with many government ministers,
political groups and economic institutions to implement effective macroeconomic policy.
As an independent economist, outside of the government, I recommend the enclosed paper.

The paper was developed with the intention of resolving limited economic growth, wage
caps, pay disputes and higher inflation. It may also help with the rising cost of social care.
The paper surrounds the concept of, "Supplementary Income" which I believe should be the
next big area in macroeconomics. A secondary economy working in tangent with the primary
economy, to support household income and economic growth, in a difficult financial period.
The goal is not to impact existing taxation intake, which is needed to repay the outstanding
national debt. Income from indirect taxation deriving from the suggested secondary economy
could help close the deficit, it may also prevent the need for more government spending cuts.
Kind Regards.
Peter James Rhys Morgan.
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Proposal
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Secondary Allowance for
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Supplementary Income 'SASI'.
Dealing with low economic growth, wage

caps, pay disputes and inflation, in a highly
constrained environment.
All rights reserved. No part of this paper may be reproduced,

stored in a retrieval system or transmitted in any form or by
any means, without the prior written permission of the author,
except in the case of brief quotations embodied in critical
articles or reviews.
Published in January 2018 by Morganist Economics.
Blog: morganisteconomics.blogspot.com
Email: morganist@mail.com
Copyright © 2018 Peter James Rhys Morgan. I

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Contents Page.
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Executive Statement.
Page 3. Executive Summary.
Articles
Page 4. More Work, More Reward - A Secondary Personal Taxation Allowance For
Supplementary Income.
Page 5. Supplementary Income Co-operative.
Page 6. Rather Than Another Interest Rate Rise - Inflation Absorption Through A 'SASI'.
Page 7. "SASI" Cost Efficiencies and Developing a Secondary Economy.
Worked Examples
Page 8. Average Wage, £27,600 and £11,500 Supplementary Income.
Page 9. Average Wage, £27,600 plus £11,500 none Supplementary Income.
Page 10. Higher Wage, £90,000 and £11,500 Supplementary Income.
Page 11. Higher Wage, £90,000 plus £11,500 none Supplementary Income.
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Executive Summary.
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As an independent freelance macroeconomist, who supports cross party interests in an effort

to improve macroeconomic efficiencies, I have provided the following paper, putting forward
the suggestion of a Secondary Personal Taxation Allowance for Supplementary Income. I
identify limitations in economic growth, wage caps, pay disputes and inflation control, as the
main threats to macroeconomic prosperity. I conclude the resolution to 'All' of these
limitations is supply side stimulus, preferably, through an expanse in secondary occupation.
As macroeconomic control has become constrained taxation exemptions on further work, in

addition to existing occupation, 'Supplementary Income', is the most viable option to expand
economic output. Cost efficiencies for Supplementary Income, if the primary allowance is
matched, range from £2,300 to £4,830, depending on the individual's taxation code and
national insurance contributions. The suggestions put forward in this paper offer the
possibility of a secondary, 'Free Market', economy of tax free trade or tax free employment.
A Secondary Allowance for Supplementary Income, 'SASI', will offer the opportunity to
maintain macroeconomic targets. It may also generate a secondary 'System D' style economy,
which could support the primary economy through the current difficulties. I recommend the
introduction of a Secondary Personal Taxation Allowance for Supplementary Income, equal
to the existing Primary Personal Taxation Allowance of £11,500. I also recommend the
introduction of a Supplementary Income Co-operative business entity, for large projects.
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More Work, More Reward - A Secondary
Personal Taxation Allowance For
Supplementary Income.
On a macroeconomic level the UK is very constrained. High levels of national debt hinders
reductions in taxation, which could be used to stimulate the economy. The risk of higher
inflation limits the effectiveness of interest rates to enable growth. A further quantitative
easing program could lead to a much greater devaluation of the currency.
In short any kind of economic growth plan using the existing methods of stimulus would
prove difficult, if not costly, assuming they would work at all. It could, however, be possible
to achieve economic stimulus without other costs or consequences, like a loss of government
revenue or a weaker currency. Additional beneficial outcomes may also be attainable.
A cut in taxation would reduce the income the government receives. Due to high levels of
debt, which needs to be paid back, the government cannot afford to decrease rates of taxation.
This does not mean taxation on further earnings on top of the existing level of output cannot
be cut, if not taken away all together. Further earnings do not have to be taxed.
If the labour market was to be expanded through the workforce performing additional labour
and services, the income whether taxed or not would not impact the existing taxation intake.
By offering a second personal taxation allowance on supplementary income, where the
individual works for or operates more than one business, economic growth can be attained.
There is an incentive for further output without impacting existing taxation revenue. If
someone is prepared to work more, by taking an additional form of occupation, either by
working for an employer or starting a new business, they will receive a greater financial
benefit for doing so. More work more reward and economic stimulus at little or no cost.
The only potential cost would be the loss of taxation revenue deriving from people who
already have more than one occupation. This should be offset, if not, dwarfed by the increase
in the, ‘dual occupation workforce’ emerging from the supplementary personal taxation
allowance generating a higher level of output and economic diversification.
An additional personal taxation allowance on income equal to the existing personal taxation
allowance of £11,500, would be sufficient. For someone at the lower rate of taxation of 20%
they would save £2,300, if they took advantage of the full allowance. For someone at the
higher rate of taxation of 40% they would save £4,600, if they used the full allowance.
There is an additional rate of taxation of 45%, however it is questionable if the supplementary

taxation allowance should still be viable because it starts at £150,000 per annum. If the
supplementary personal allowance was enabled for the lower rate and the higher rate it should
be a sufficient enough incentive for further growth, at little consequence to taxation revenue.
The other possible consequence is the increase in income could lead to a cut in benefits, if
income surpasses the threshold entitling the individual to be recipient. As the new income is
supplementary it should be excluded from the income threshold means test calculation.
Benefit income is only impacted after the secondary personal allowance is exceeded.
When the secondary personal allowance is exceeded income over becomes inclusive to the
benefit means test calculation. The question is whether the income which surpasses the
secondary personal allowance should revert back to the rate of taxation on the first income or
start at the lower level. Personally I think it should start again at the lower level and tier up.

Published at the Huffington Post on
Copyright © Peter James Rhys Morgan 2018. 24/04/2017 12:56 By Peter Morgan.
Supplementary Income Co-operative.
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.

Published at the Huffington Post on
Copyright © Peter James Rhys Morgan 2018. 17/08/2017 11:30 By Peter Morgan.
Rather Than Another Interest Rate Rise -
Inflation Absorption Through A 'SASI'.
I have previously written about the concept of a 'Secondary Personal Taxation Allowance for
Supplementary Income'. The idea surrounds enabling expanding output through the incentive
of no tax on further income for a second occupation, as long as earnings do not exceed the
secondary personal taxation allowance and the individual is still in primary occupation.
Simply starting a second occupation does not entitle the individual to the secondary personal
allowance. The second occupation has to generate income, which is tax free for the worker
whilst within the taxation allowance. The individual does not get £23,000 of taxation
allowance, the new occupation has its own allowance which the worker draws income from.
I was looking for growth in a constrained environment when developing the idea, which
offers a chance to start a business tax free for the first £11,500 if already in existing
occupation. An opportunity of £11,500 of tax free trade that should not impact the existing
taxation intake, needed to repay the tremendous national debt exceeding £1.94 Trillion.
This is an opportunity to generate a secondary tax free economy on top of the existing taxed
economy. It also expands the earning opportunities of the workforce improving their take
home income and may help to resolve pay disputes. There were some limiting factors to some
of the proposals, which were resolved through the Supplementary Income Co-operative.
Formerly the Secondary Personal Taxation Allowance for Supplementary Income 'SPTASI',
which I changed to the Secondary Allowance for Supplementary Income 'SASI' for
colloquialism. The 'SASI' is not only a method of increasing output within an economy, but a
way of improving taxation efficiency and household incomes to enrich people's lives.
It could also be used to control inflation through economic growth 'Inflation Absorption'. The
current method of controlling inflation is the interest rate mechanism, if inflation is too high
interest rates will rise. Higher rates of interest will make loan repayments greater taking away
spending power from whoever owes money like, homeowners, businesses and consumers.
Inflation is calculated using a Price Index, usually a Paasche or Laspeyres Index. The index
measures the overall price of a set basket of goods at one period of time and then compares
the overall price of the same basket of goods at a later period of time. If at the later date the
price has risen inflation has occurred, if the price has fallen deflation has occurred.
The assumption that is made to increase the interest rate to control inflation works on the
premise inflation is caused by a surplus of money supply or availability to consume. This
indicates the understanding of economics the Bank of England, who set the interest rate,
follows believes inflation is caused by a disparity in overall output and overall consumption.
In this case they have chosen to control inflation by reducing the ability to consume to close
the disparity, which they see as excessive consumption. There is another way to close this
disparity in overall output and overall consumption, which is called an inflationary gap, by
increasing output. In short the availability to consume remains the same but output increases.
Closing the inflationary gap through 'Supply Side' stimulus, 'There isn't too much money,
you're just not producing enough!' This method of controlling inflation requires the ability to
increase productivity and in turn output. Any incentive increasing the will or ability of people
to work makes more goods and services available reducing overall prices, perhaps the 'SASI'?

Published at Morganist Economics on
18:49 21/11/2017 By Peter Morgan.
"SASI" Cost Efficiencies and Developing a
Secondary Economy.
I have put forward the concept of a Secondary Allowance for Supplementary Income or the
'SASI' as an acronym. The original intention of the 'SASI' was to increase economic output,
but it may also increase take home pay, resolve pay disputes and control inflation. The 'SASI'
offers financial efficiencies for further work or free trade on top of primary occupation.
For an individual with the national average income of £27,600 per annum the taxation
efficiencies will be at least 20% of earnings. If National Insurance Contributions are not
required for income generated in the secondary occupation the individual will save 29% of
earnings. National Insurance Contributions may be required to make the full stamp payment.
For an individual with income exceeding the higher taxation bracket of £45,000 savings will
be at least 40% of earnings. If National Insurance Contributions are not required for income
generated in the secondary occupation the individual will save 42% of earnings. Further
National Insurance Contributions may not be required if primary occupation pays the stamp.
For an individual earning £10.00 per hour from their secondary occupation, which is tax
exempt up to £11,500 p.a. They would of had a take home income of £8.00 per hour for the
lower taxation rate of 20%, without the secondary allowance. If the income requires further
National Insurance Contributions they would of had a take home income of £7.10 per hour.
For an individual earning £10.00 per hour from their secondary occupation, which is tax
exempt up to £11,500 p.a. They would of had a take home income of £6.00 per hour for the
higher taxation rate of 40%, without the secondary allowance. If the income requires further
National Insurance Contributions they would of had a take home income of £5.80 per hour.
If the full allowance of £11,500 is utilised the taxation saving will be £2,300 at the lower
taxation rate of 20%. If the income is exempt from further National Insurance Contributions
the taxation saving will be £3,335. The taxation saving will be £4,600 at the higher taxation
rate of 40%. Taxation saving will be £4,830 if National Insurance Contributions are exempt.
The 'SASI' is not just a way of entering further employment and gaining an additional
taxation allowance for doing so, it is a way of engaging in tax exempt free trade up to
£11,500 per annum. The real agenda behind the 'SASI' is to have a second legalised tax free,
'System D', economy on top of the existing regulated economy enabling economic expansion.
It should not impact the existing economy due to it only being available for people already in
primary occupation. Existing taxation intake should not be impacted. The intention of the
'SASI' is not merely to encourage individuals to look for further employment, but to
encourage individuals in primary occupation to engage in up to £11,500 of tax free trade.
Forget employment even, £11,500 of tax free trade. Sell cakes, do social work or get a sales
commission for beer, that is taxation exempt on profits. This will make the cost of beer fall
too, if the purveyor passes on the savings. "Do you want to buy cheap beer? Yes. OK sign
this document and it will be delivered." You don't need to work for anyone else, 'Just Trade'!
Can you see how this will not take too much time or effort? How it can reduce the cost of
goods and services? How you can only get it if you are already in work? How the existing
economy and taxation intake remain the same? How it can reduce inflation? How you might
be able to get cheaper goods? A 'System D' economy in tangent with the primary economy!

Published at Morganist Economics on
Copyright © Peter James Rhys Morgan 2018. 19:57 11/01/2018. By Peter Morgan.
Worked Example 1.
Average Wage, £27,600 and £11,500 Supplementary Income.
Personal Allowance £11,500 Allowance Cut £100,000

£100,000 + PA Cut 0 £100,000 + PA 0
Basic Rate 20% 0.2 NIC Basic Rate 9% 0.09
Higher Rate 40% 0.4 Higher Rate 2% 0.02
Your Primary Occupation is the Occupation generating the greater

amount of income. You may not receive a full Primary or Secondary
Allowance if your income surpasses £100,000.
Income Taxation Taxed Income Tax Due

Primary Occupation £ 27,600 £ 16,100 £ 3,220
Personal Allowance £ 11,500 £ 11,500 £ -
Basic Rate Up To £ 33,500 £ 16,100 £ 3,220
Higher Rate Up To £ 105,000 £ - £ -
The Primary Occupation does not receive £23,000 of Allowances, the

Secondary Occupation must generate its own income to receive the
Supplementary Income Allowance.

Secondary Occupation £ 11,500 £ - £ -
Basic Rate Up To £ 33,500 £ - £ -
You may not have to include income from your Second Occupation in
the National Insurance Calculation, if income from your Primary
Occupation exceeds a certain amount.
Income Taxation Taxed Income NIC Due

Basic Rate Up To £ 36,836 £ 19,436 £ 1,749
If income from your Primary Occupation falls below "X" amount you
might have to include income from your Second Occupation in the
National Insurance Calculation to receive the Full National Insurance
Stamp, this may be optional.
Total Income £ 39,100

Total Taxation £ 3,220
Total NIC £ 1,749
Take Home £ 34,131

Worked Example 2.
Average Wage, £27,600 plus £11,500 none Supplementary Income.

£100,000 + PA Cut 0 £100,000 + PA 0


Basic Rate Up To £ 33,500 £ 27,600 £ 5,520


Secondary Occupation £ - £ - £ -
Personal Allowance £ 11,500 £ - £ -
Basic Rate Up To £ 33,500 £ - £ -

Basic Rate Up To £ 36,836 £ 30,936 £ 2,784

Total NIC £ 2,784
Take Home £ 30,796

Worked Example 3.
Higher Wage, £90,000 and £11,500 Supplementary Income.

£100,000 + PA Cut 0 £100,000 + PA 0


Basic Rate Up To £ 33,500 £ 33,500 £ 6,700
Higher Rate Up To £ 105,000 £ 45,000 £ 18,000


Secondary Occupation £ 11,500 £ - £ -
Basic Rate Up To £ 33,500 £ - £ -

Basic Rate Up To £ 36,836 £ 36,836 £ 3,315
Higher Rate Up To £ 105,000 £ 45,000 £ 900

Total NIC £ 4,215
Take Home £ 72,585

Worked Example 4.
Higher Wage, £90,000 plus £11,500 none Supplementary Income.

£100,000 + PA Cut 1500 £100,000 + PA 750


Basic Rate Up To £ 34,250 £ 34,250 £ 6,850
Higher Rate Up To £ 105,000 £ 56,500 £ 22,600


Secondary Occupation £ - £ - £ -
Personal Allowance £ 11,500 £ - £ -
Basic Rate Up To £ 33,500 £ - £ -

Basic Rate Up To £ 36,836 £ 36,836 £ 3,315
Higher Rate Up To £ 105,000 £ 56,500 £ 1,130

Total NIC £ 4,445
Take Home £ 67,605

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Monday, 29 January 2018
Online taxation calculators may be giving incorrect taxation estimates.
Some are massively off. Perhaps a Statement of Warning.

In my calculations I have followed the Inland Revenue's specifications, with the supporting
guideline examples from iknowtax.com. I used the figures from the Inland Revenue's online
Income Tax and National Insurance tables. I might be incorrect, but I think I am accurate.
When checking my figures in comparison to online calculators I found that many, if not all,
had calculated figures outside of the Inland Revenue's guidelines and rates. Assuming my
calculations are correct, this makes the online estimates massively inaccurate and misleading.
I found the following problems.
National Insurance (NIC) Personal Allowance. Class 4.
Class 4
2017 to 2016 to 2015 to 2014 to

£ per year
2018 2017 2016 2015
Lower Profits Limit
Self-employed people start paying Class 4 £8,164 £8,060 £8,060 £7,956
NI
Upper Profits Limit
£45,000 £43,000 £42,385 £41,865
Self-employed people pay a lower rate
Rate between Lower Profits Limit and
9% 9% 9% 9%
Upper Profits Limit
Rate above Upper Profits Limit 2% 2% 2% 2%
www.gov.uk/government/publications/rates-and-allowances-national-insurance-
contributions/rates-and-allowances-national-insurance-contributions

Some calculators haven't given NIC's the personal allowance, making them incorrect. Unless
the limit of £8,164 is inclusive to the £45,000 income threshold when surpassed. The wording
indicates it is exclusive. "Rate between Lower Profits limit and Upper Profits limit. 9%."
Indicating there is no tax on the first £8,164. Thus it is an effective NIC personal allowance.
"Rate above Upper Profits limit. 2%." It does not specify a rate below the Lower profits limit
of £8,164. So I assume, also the iknowtax.com example states, the rate below £8,164 is 0%.
Better Clarification on the Inland Revenue's Website.

Some calculators include Class 2 National Insurance of £2.85 per week or £148.20 per year,
as well as Class 4 National Insurance rates. However the Inland Revenue's website states,
"There are 2 types of NI for people who work for themselves, depending on their profits".
I assume and so does the example from iknowtax.com that you either pay Class 2 or Class 4
National Insurance, rather than a tier of paying Class 2 and then Class 4 if income increases.
The wording on the Inland Revenue's website would indicate you pay one or the other.
As stated, "There are 2 types", 2 types not 2 tiers, indicating you pay one or the other rather
than both when income surpasses a threshold, which is the standard wording. Also,
"depending on their profits", suggests it is an outcome to pay one class or the other, not both.
I am not sure whether to include Class 2 National Insurance in my calculations, or not, but
based on the wording, on the Inland Revenue's website, I have left it out. I might be wrong, if
so all you have to do is add £148.20 to the NIC, as a flat rate, to get the amended figure.
Incomes in excess of £100,000.

Many online calculators haven't adjusted the personal allowance for incomes above £100,000
per annum, where the personal allowance drops by £1 for every £2's earned. Some, not all,
seem to add £9 to the personal allowance before and after the £100,000 income level, as well.
This requires action.

Some of the figures provided by the online taxation calculators are massively off, even from
one to another, regardless of my estimates. This could be misleading when estimating
incomes for financial planning. Perhaps there needs to be an official warning statement.
The Inland Revenue may have to change the wording on their website to make it more
accurate. Greater clarification could resolve many of these issues. They may have to change
the wording, 'types' to thresholds or tiers in the self-employed National Insurance section.
Kind Regards.
Peter James Rhys Morgan.


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P J R M I

Sunday , 13 May 2018

Published at the Huffington Post. 01/04/2015 16:00 BST.

PJR Morgan Website: http://morganisteconomics.blogspot.co.uk/

Published at Morganist Economics.

Monday, 29 January 2018

As an independent economist, outside of the government, I recommend the enclosed paper.

Peter James Rhys Morgan.

Dealing with low economic growth, wage

All rights reserved. No part of this paper may be reproduced,

Published in January 2018 by Morganist Economics.

Copyright © 2018 Peter James Rhys Morgan. I

Page 3. Executive Summary.

Page 5. Supplementary Income Co-operative.

Page 7. "SASI" Cost Efficiencies and Developing a Secondary Economy.

Page 8. Average Wage, £27,600 and £11,500 Supplementary Income.

Page 9. Average Wage, £27,600 plus £11,500 none Supplementary Income.

Page 10. Higher Wage, £90,000 and £11,500 Supplementary Income.

As an independent freelance macroeconomist, who supports cross party interests in an effort

As macroeconomic control has become constrained taxation exemptions on further work, in

There is an additional rate of taxation of 45%, however it is questionable if the supplementary

PJR Morgan Website: http://morganisteconomics.blogspot.co.uk/

In my previous article, “More Work, More Reward - A Secondary Personal Taxation

PJR Morgan Website: http://morganisteconomics.blogspot.co.uk/

PJR Morgan Website: http://morganisteconomics.blogspot.co.uk/

PJR Morgan Website: http://morganisteconomics.blogspot.co.uk/

Average Wage, £27,600 and £11,500 Supplementary Income.

Personal Allowance £11,500 Allowance Cut £100,000

Your Primary Occupation is the Occupation generating the greater

Income Taxation Taxed Income Tax Due

The Primary Occupation does not receive £23,000 of Allowances, the

Income Taxation Taxed Income Tax Due

Income Taxation Taxed Income NIC Due

Total Income £ 39,100

PJR Morgan Website: http://morganisteconomics.blogspot.co.uk/

Average Wage, £27,600 plus £11,500 none Supplementary Income.

Personal Allowance £11,500 Allowance Cut £100,000

Your Primary Occupation is the Occupation generating the greater

Income Taxation Taxed Income Tax Due

The Primary Occupation does not receive £23,000 of Allowances, the

Income Taxation Taxed Income Tax Due

Income Taxation Taxed Income NIC Due

Total Income £ 39,100

PJR Morgan Website: http://morganisteconomics.blogspot.co.uk/

Higher Wage, £90,000 and £11,500 Supplementary Income.

Personal Allowance £11,500 Allowance Cut £100,000

Your Primary Occupation is the Occupation generating the greater

Income Taxation Taxed Income Tax Due

The Primary Occupation does not receive £23,000 of Allowances, the

Income Taxation Taxed Income Tax Due

Income Taxation Taxed Income NIC Due

Total Income £ 101,500

PJR Morgan Website: http://morganisteconomics.blogspot.co.uk/

Higher Wage, £90,000 plus £11,500 none Supplementary Income.

Personal Allowance £11,500 Allowance Cut £100,000

Your Primary Occupation is the Occupation generating the greater

Income Taxation Taxed Income Tax Due

The Primary Occupation does not receive £23,000 of Allowances, the

Income Taxation Taxed Income Tax Due

Income Taxation Taxed Income NIC Due

Total Income £ 101,500

PJR Morgan Website: http://morganisteconomics.blogspot.co.uk/

Monday, 29 January 2018