Autumn Statement 2016
Discussion
Eric Mc said:
£50,000 costs would be on the high side for a contractor. I was just demonstrating the principle of how an effective rate of 12% Corporation Tax on SALES could arise in theory.
Thanks for taking the time to explain.There are often claims on PH which are misleading like this one, shame really.
CarlosFandango11 said:
Thanks for taking the time to explain.
There are often claims on PH which are misleading like this one, shame really.
There are often claims on PH which are misleading like this one, shame really.
A friend who managed an effective tax rate of 5%
1. Had directors annual AGM - him and his wife in windows over the world twin towers Business class flights out etc
2. secretary running the admin and researching potential new roles for him - she didn't have another job (stay at home Mum) so paid 0% tax there too
I'm not going to list the many many other business expenses claimed
Welshbeef said:
A friend who managed an effective tax rate of 5%
1. Had directors annual AGM - him and his wife in windows over the world twin towers Business class flights out etc
2. secretary running the admin and researching potential new roles for him - she didn't have another job (stay at home Mum) so paid 0% tax there too
I'm not going to list the many many other business expenses claimed
CarlosFandango11 said:
These aren't going to scratch the surface of the "expenses" required to get to 5%. There's a massive amount of more "expenses" than that which would need to be claimed, I don't think I believe you on this one.
Seriously I cannot be asked to tell you especially as it's so long ago. Think dividends think what can be claimed against revenue. Frankly I couldn't give a flying f
k if you do or don't I know I did as that's what I paid and I was gutted my friend maanaged under half that for W one year like for like. CarlosFandango11 said:
These aren't going to scratch the surface of the "expenses" required to get to 5%. There's a massive amount of more "expenses" than that which would need to be claimed, I don't think I believe you on this one.
ok I'll give a quick go:business turnover: £100k
expenses or business costs: (assumed 2 people- 1 husband and wife)
mileage (using own car for business use)- 2 x 10k miles @ £0.45/mile= £9k
home office= 12months @ £100/month= £1.2k
computers= 2 x £1.5k MacBook pros= £3k
mobile phones= 2 x £50/month= £1.2k
travel (misc.... aka flights/hotels/ disguised holidays!)= £5k ?? (maybe even £10k depending how much they take the pi$$)
wages= 2 x £10k = £20k
insurances= £1k
accountants fee= £1.5k
pension contributions= 2 x £5k= £10k
total= £51.9k
taxable profit= £48.1k @ 20% corp tax= £9.62k (9% effective corp tax)
Now I'm not saying these are all legitimate expenses or exact figures that someone should even consider aiming for. But I think you can see that if you really wanted to bend the rules that you can, but if I were to be doing the above, I'd be very nervous about an HMRC investigation. but some people just don't care!
Eric Mc said:
768 said:
I'm not sure what's improper about a business with one employee and one client; you have to start somewhere.
Nothing improper at all - as long as it is a bona fide trading operation - and not a construct being used to "disguise employment".Welshbeef said:
Seriously I cannot be asked to tell you especially as it's so long ago. Think dividends think what can be claimed against revenue.
Frankly I couldn't give a flying fk if you do or don't I know I did as that's what I paid and I was gutted my friend maanaged under half that for W one year like for like.
Your mention of gutted says it all, I really can't understand why people making good money want to pay so little tax and still have opinions like you have.Frankly I couldn't give a flying f
k if you do or don't I know I did as that's what I paid and I was gutted my friend maanaged under half that for W one year like for like. How does a country run without everyone paying what is a reasonable amount of tax. So you would really be happy earning over 100k but paying only 5 % tax.
Sorry but you really are an a
hole and show a real pronblem in this country, pure greed and **ck everyone else.Edited by tighnamara on Monday 28th November 20:26
Edited by tighnamara on Monday 28th November 20:27
tighnamara said:
Your mention of gutted says it all, I really can't understand why people making good money want to pay so little tax and still have opinions like you have.
How does a country run without everyone paying what is a reasonable amount of tax. So you would really be happy earning over 100k but paying only 5 % tax.
Sorry but you really are an ahole and show a real pronblem in this country, pure greed and **ck everyone else.
How much £ tax and NI did you pay last year? That's the measure. I wonder if you are a net receiver ... that's fHow does a country run without everyone paying what is a reasonable amount of tax. So you would really be happy earning over 100k but paying only 5 % tax.
Sorry but you really are an a
hole and show a real pronblem in this country, pure greed and **ck everyone else.Edited by tighnamara on Monday 28th November 20:26
Edited by tighnamara on Monday 28th November 20:27
king over the country so please spill else don't get so uppity Welshbeef said:
How much £ tax and NI did you pay last year? That's the measure. I wonder if you are a net receiver ... that's fking over the country so please spill else don't get so uppity
Your argument is shi*t, I am getting "uppity" as you put it because you posted on a financial forum how you wished you had managed to pay so little tax.king over the country so please spill else don't get so uppity I don't need to spill anything I ain't the one who has openly said they would try and pay so low a tax on such a high figure.
No change from the usual drivel you post..............
tighnamara said:
Welshbeef said:
How much £ tax and NI did you pay last year? That's the measure. I wonder if you are a net receiver ... that's fking over the country so please spill else don't get so uppity
Your argument is shi*t, I am getting "uppity" as you put it because you posted on a financial forum how you wished you had managed to pay so little tax.king over the country so please spill else don't get so uppity I don't need to spill anything I ain't the one who has openly said they would try and pay so low a tax on such a high figure.
No change from the usual drivel you post..............
tighnamara said:
Welshbeef said:
Let me be clear if I could earn my whole salary legally at 0% guess what absolutely. Sadly that isn't an option currently which is a crying shame.
Your a hellava man.............So how much tax do you pay (and remember it's best part of 20 years since I've not been PAYE) you hella guy you
Welshbeef said:
You have to be in it to win it.
So how much tax do you pay (and remember it's best part of 20 years since I've not been PAYE) you hella guy you
Before I had my back injury 30 years ago I used to pay tax, I need high earners like you to,pay your taxes to keep my benefits coming in So how much tax do you pay (and remember it's best part of 20 years since I've not been PAYE) you hella guy you
tighnamara said:
Welshbeef said:
You have to be in it to win it.
So how much tax do you pay (and remember it's best part of 20 years since I've not been PAYE) you hella guy you
Before I had my back injury 30 years ago I used to pay tax, I need high earners like you to,pay your taxes to keep my benefits coming in So how much tax do you pay (and remember it's best part of 20 years since I've not been PAYE) you hella guy you
So you change the rules - as you cannot force someone to be less efficient in their personal tax affairs
The only way to make it fair is for everyone to pay the same % of income tax after a tax free element. What makes £45k OS £100-122k or £150k such special mile stones?or the single income over £60k get zilch child benefit yet 2x£50k with kids get 100%.
If you won the lottery would you give it all to the tax man to help those on benefits? If not why not it's a lifetimes salary tax fee all in one lump / depending on the size of it it might be countless lifetimes of earnings. Why is it right they pay zero tax on it and they don't need it so make them give it up.
Welshbeef said:
No one in their right mind would elect to pay more tax - donate to charity is totally different.
So you change the rules - as you cannot force someone to be less efficient in their personal tax affairs
The only way to make it fair is for everyone to pay the same % of income tax after a tax free element. What makes £45k OS £100-122k or £150k such special mile stones?or the single income over £60k get zilch child benefit yet 2x£50k with kids get 100%.
If you won the lottery would you give it all to the tax man to help those on benefits? If not why not it's a lifetimes salary tax fee all in one lump / depending on the size of it it might be countless lifetimes of earnings. Why is it right they pay zero tax on it and they don't need it so make them give it up.
OK, look at it another way.So you change the rules - as you cannot force someone to be less efficient in their personal tax affairs
The only way to make it fair is for everyone to pay the same % of income tax after a tax free element. What makes £45k OS £100-122k or £150k such special mile stones?or the single income over £60k get zilch child benefit yet 2x£50k with kids get 100%.
If you won the lottery would you give it all to the tax man to help those on benefits? If not why not it's a lifetimes salary tax fee all in one lump / depending on the size of it it might be countless lifetimes of earnings. Why is it right they pay zero tax on it and they don't need it so make them give it up.
You had / have ways to reduce your tax bill for the year through working as a contractor. What gives you then the right to pay little or no tax but Joe down the road earning £35,000 pays the going tax rate through no fault of his own other than being PAYE.
I may be wrong here but I doubt that there is any country that doesn't have increased tax rates on level of earnings.
Will agree that the current tax system needs to be overhauled though but personally I like to pay my taxes within reason. This may seem silly to you but I would struggle to pay only 5% tax on a high income, that's just me though.
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