Income Tax

[tdiplc]

Do you think that the current income tax rates are fair?

23% up to around £33k per year, then 40% from £33k up to 10 squillion quid.

Methinks there's something wrong here

[TonyGoose]

Sure i said this somewhere before .... but ...

ALL taxation is legalised theft :megaangry:

[Scorpion]

Your BORN.......you WORK..........you pay TAXES...........you DIE..........end of

I assume you pay 40%, then have a thought for those that are

on the minimum wage(no i'm not),or cant afford a night out or nice cars,treats

the list goes on.Donate some of your wealth to the homeless,3rd world countries

or worth while charities.

Dont want to get up anybodys nose.

Stop Whinging this is life!!!!

There,rant over

[neil is200]

Your BORN.......you WORK..........you pay TAXES...........you DIE..........end of

it should read:-

Your BORN.......you WORK..........you pay TAXES...........you DIE..........you pay 40% tax on anything your worth over £250,000.......end of

just to add my two cents worth

[tdiplc]

Sadly we have to pay taxes unless we want to live even more like a 3rd world country.

I wonder why we don't have a couple of more tiers?

I reckon 40% from £33k is an outrageous liberty on the not well off. How about the following:

23% up to £33k

30% up to £45k

40% up to £100k

45% upwards of £100k

This would give an added boost and incentive to the back bone of the country, and make the very well off pay a very small percentage more.

I think I'll add this to manifesto

[dlayen]

.Donate some of your wealth to the homeless,3rd world countries

or worth while charities.

we already donate 40% is that not enough???

[Bazza-old]

I reckon 40% from £33k is an outrageous liberty on the not well off. How about the following:

i dont think people who earn 33k could be classified as not well off

its only 40% of the amount above this ,up to this amount they still pay the same as someone earning 15k

[UltraViolet]

Don't forget the personal allowance first as well. First bit is free, then 15% / 23% etc.

TBH - I would happily pay more direct taxation and remove some of the indirect taxes.

I think it is fairest all round if we pay on earnings, but then don't pay on savings/spendings etc.

I think there should perhaps be a 45 or 50% rate for amounts over say 250k BUT we cannot say how that could effect the balance needed elsewhere without info we don't have. We cannot second guess balancing the books.

I would like to see waste and inefficiences driven out of what our tax money goes on - but ultimatly, I like this country and appreciate that many of the benefits are costly. Also although there will always be scroats and thieves who will 'do' the system - on the whole, those that need the benefits system are genuine and should be supported.

I would MUCH rather be one of the hard working that pays 40% tax, than someone living on minimum wage or benfits.

I won't get into whether people earning £33k and above are well off enough - as that is decided not by your income, but by your disposable income. It is also a fact that some people are better with money than others and so can earn less but live a better lifestyle.

[TonyGoose]

23% up to £33k

30% up to £45k

40% up to £100k

45% upwards of £100k

I think I'll add this to manifesto

While this is all very well in theory ....

The kind of people who would be liable for the higher rates are the same people,

who by virtue of having tons of dosh, can pretty much choose which country to pay taxes in.

So, to get any tax off them at all, the rate has to be 'competitive' on a global scale.

Another one liner on the subject ...

"Rich people don't pay taxes, they pay accountants instead"

Oh, and in answer to a previous question ... or i think that's what it was ...

Nope, not me guv ... i aint part o' no 40% tax bracket ...

You pay 40% tax on income above £35115 ...

this includes the £4615 tax free allowance (applicable to the under 65's)

:duh: :duh:

[djanderso]

Here's the solution....

As there are so many bloody *** 3 series drivers out there - let them pay 75% tax on every penny they earn.

:)

[Bazza-old]

i suppose the well off / not well off is down to personal views

the theory of the more you earn the more you spend is true

Don't forget the personal allowance first as well. First bit is free, then 15% / 23% etc.

and there is also a 10% bracket

[Risky3301]

Taxation limits are OK, I never pay more than :tsktsk: %, the secert is to this a very good accountant.

[Brian Berry]

As a senior member I have been doing some research. When you get to 65 your tax allowance increases by £2000. If you work and earn over £8000 then the allowance decreases by £1 for every £2 earned.

If you have another pension then you pay tax on your state pension.

Its tax everywhere , that is pay, pensions, vat, excise licences and indirect taxation in ' speeding offences'

This ( speeding fines) is another subject already thrashed .

[javadude]

It's our fault - we voted Labour :iraqi-info-minister:

(well I didn't the last time but the time before that I did).

[tdiplc]

It's our fault - we voted Labour :iraqi-info-minister:

(well I didn't the last time but the time before that I did).

Quite right Javadude. I think a lot of us were fed up with a morally bankrupt Tory party that were devoid of any new ideas or solutions, and voted for a change

It seems to me that the 40% tax rate has been around for as long as I can remember at roughly the same threshold.

£33k ten or more years ago was a very good wage, but nowadays it is about average. Why should Mr Average be paying the same tax rate as Mr Multi Millionaire?

Don't sound fair to me.

[TonyGoose]

£33k ten or more years ago was a very good wage, but nowadays it is about average.

He He .. OK then, on that basis ...

Scuse me guv, could you spare some change kind sir ....

For a hard up chap with modest mortgage and lexus to run :D

Better stop before '2 jags' tells the police to move me on ...

Can't be having no undesirable scroungers making the place look untidy ... ey Mr Prescott :shutit:

[jac114]

Iwish I was in the 40% bracket... at least that way i would still be taking home more than I do In the 23% bracket and yes if you look at my avatar you will see i live in surrey... load of bollocks that 33k average.. that is only the case because surrey has the biggest amount of multi millionairs living here.. most of there wealth is amassed from overseas bussiness.. so here i sit earning just over 20k with 2 kids in an area where the average price of a 2 bed flat is 160k. o.k have you worked out the sums yet.. How do you get a mortgage for 160k with 20k income .. I was lucky.. got my mortgage 7 years ago when my flat was only 70k.. (now valued at 165k) For those who are looking into buying there first home now its almost impossibe unless you earn at least 40k (Thats above the so called average) .

o.k rant over

jac

[Loz]

The Actual Average income according the the Office of National Statistics (paid for by our taxes!) has risen over the last ten years from £15k to £25k. still seems a little low maybe? well, think about the rise in the price of mars bars, petrol and Milk and you'll see that its not maddly out of kilter.

So with the average earnings enabling the employee a mortgage of £88k what can they expect to buy if the average house price is £120k.... I guess they must save their whole net income for 3 years to save for a deposit. Oh yes, our countries economics are just dandy!

I've not long been a 40% tax payer but I am striving to pay £100k a year in direct income tax before leaping into the world of being self employed and having someone almost as Smart as Ultraviolet show me how to pay £5k a year in tax. now that is a bonus woth working towards!

Tax is a good problem to have. the bigger the problem the better you are doing, surely?

Loz (complete with rose tinted specs)

and before you say it, I DID go to specsavers!

[Bazza-old]

The Actual Average income according the the Office of National Statistics (paid for by our taxes!) has risen over the last ten years from £15k to £25k. still seems a little low maybe? well, think about the rise in the price of mars bars, petrol and Milk and you'll see that its not maddly out of kilter.

So with the average earnings enabling the employee a mortgage of £88k what can they expect to buy if the average house price is £120k.... I guess they must save their whole net income for 3 years to save for a deposit. Oh yes, our countries economics are just dandy!

I've not long been a 40% tax payer but I am striving to pay £100k a year in direct income tax before leaping into the world of being self employed and having someone almost as Smart as Ultraviolet show me how to pay £5k a year in tax. now that is a bonus woth working towards!

Tax is a good problem to have. the bigger the problem the better you are doing, surely?

Loz (complete with rose tinted specs)

and before you say it, I DID go to specsavers!

a good accountant should be able to save you paying as much tax

but inevatably you will allways have to pay it

there are many schemes that can be used to save money

but you allways have to bear in mind the old taxman aint daft

i employ my wife and pay her £25k a year, she gets taxed at 23%

but its 25k im not paying 40% on, so in theory i can earn 50k and still be taxed at 23%

being self employed i also put my car down as a company car, i dont get taxed on that unlike the employed persons company car, and every thing i buy for it goes through the books and the VAT can be reclaimed on it

[TonyGoose]

i employ my wife and pay her £25k a year, she gets taxed at 23%

but its 25k im not paying 40% on, so in theory i can earn 50k and still be taxed at 23%

Wasn't there something in the gold forums about this kind of thing ?

TaxMan had latched onto it and gave someone a huge backdated bill or something ?

[Bazza-old]

i employ my wife and pay her £25k a year, she gets taxed at 23%

but its 25k im not paying 40% on, so in theory i can earn 50k and still be taxed at 23%

Wasn't there something in the gold forums about this kind of thing ?

TaxMan had latched onto it and gave someone a huge backdated bill or something ?

cant say i read it

but this was all done legit

on advice from certified accountant

i am classed as a sole trader ,i know there is a lot of differences to a LTD company

[TonyGoose]

i employ my wife and pay her £25k a year, she gets taxed at 23%

but its 25k im not paying 40% on, so in theory i can earn 50k and still be taxed at 23%

Wasn't there something in the gold forums about this kind of thing ?

TaxMan had latched onto it and gave someone a huge backdated bill or something ?

cant say i read it

but this was all done legit

on advice from certified accountant

i am classed as a sole trader ,i know there is a lot of differences to a LTD company

Here it is ...

http://www.goldmembers.co.uk/loc/forums/vi...topic.php?t=769

Read it and weep

On the plus side, seems as though 'gold members' may be able to avoid it

[djanderso]

i employ my wife and pay her £25k a year

I employ my wife to cook me dinners and iron my shirts - she ain't getting £25K a year to do that! :D :P

[djanderso]

on advice from certified accountant

All accountants should be certified!

[DaveEllen]

I've set up a limited company....

pay myself 380 per month and a dividend of 3k per month

no NI cont on 3k & 380 is below ni threshold

charge the company petrol @ .25p a mile & other expenses at cost

then claim 40 p back from IR as allowable expense on my personal tax which offsets the "profit" calc from the .25 p a mile.........

Then @ year end pay as much of the companys tax into my pension fund.

got other dodges to beat IR35 as well.......

I've paid full NI & Tax since 1977........never been unemployed.........no kids...........been ill twice (in hospital 2 weeks all my life......

when I retire at 70 as Mr Blair want Ill get bugger all.........which is why I'm joining big business and doing everything I can to pay as little as possible....... :shutit: