Diesel users to pay £20 to enter London
Discussion
98elise said:
Tell me how you legally pay only 20% on 100k though a ltd company?
you pay yourself 10k a year in 'wages' (atracting no tax and minimal NI) and take the rest out as a dividend which only attracts corporation tax at 20%, (small profit rate up to 300,000).you can also get the wife involved and claim tons of spurious 'expenses' to reduce your bill even further.
It's really easy.
ORD said:
You are kidding, right? You seriously think employees earning hundred of thousands are paying 20% tax? Look up how much of UK tax comes from the top 1% of earners. Doesn't fit with your theory, does it? Check out the figure for how much comes from the top 10%. That doesn't fit either, does it?
We are a country of miserable and envious people, sadly. We despise success and jump on every opportunity to attack the few people who can genuinely compete for business with other major economies.
The financial sector is still, notwithstanding the bailouts etc, easily the biggest net contributor to the UK economy for the last several decades. You can read the Daily Mail nonsense or actually take a sensible view about how a 21st century economy has to function.
You reckon the UK is an example of how a good economy works? An economy that booms and busts under any government, an economy that has not made good fist of long term success in any sector, other than perhaps debt creation?We are a country of miserable and envious people, sadly. We despise success and jump on every opportunity to attack the few people who can genuinely compete for business with other major economies.
The financial sector is still, notwithstanding the bailouts etc, easily the biggest net contributor to the UK economy for the last several decades. You can read the Daily Mail nonsense or actually take a sensible view about how a 21st century economy has to function.
Re: people complaining about lawyers, bankers and other London based high earners who are supposedly not paying tax
Well I work in one of those evil institutions, and most of the people I work with are in the top 1% earners.
Guess what, they all pay between 40% and 52% income tax, which is a basically a robbery no matter how you look at it.
Trust me if there was a legal way to pay less all of them would be doing it. So get yourself a reality check FFS.
The reality is that only the ultra rich are able to tax evade. For the rest of the mere mortal 'high earners', they just pay through the nose and there is no way around it.
And a lot of the money they pay is going to the roughly 50% of the population who is actually net RECEIVERS from the state, who are sitting at home on their fat arse b
hing on the daily mail website about bankers and GPs.
So you can be jealous all you want but maybe also be a bit thankful that all these people are the biggest contributors to the welfare state.
Well I work in one of those evil institutions, and most of the people I work with are in the top 1% earners.
Guess what, they all pay between 40% and 52% income tax, which is a basically a robbery no matter how you look at it.
Trust me if there was a legal way to pay less all of them would be doing it. So get yourself a reality check FFS.
The reality is that only the ultra rich are able to tax evade. For the rest of the mere mortal 'high earners', they just pay through the nose and there is no way around it.
And a lot of the money they pay is going to the roughly 50% of the population who is actually net RECEIVERS from the state, who are sitting at home on their fat arse b
hing on the daily mail website about bankers and GPs.So you can be jealous all you want but maybe also be a bit thankful that all these people are the biggest contributors to the welfare state.
Edited by ftrigger on Thursday 31st July 09:12
NomduJour said:
Dividends are subject to income tax.
true, i was just doing a numbers game to show how you can legally pay 20% on 100k. Of course you could then only spend it within the company.
But it still stands that as a sole trader or Ltd co. earning 100k there is no way in hell you pay anywhere near 40% on your earnings because you can offset so much of what we all would consider day to day costs to bring your taxable earnings below the required threshold.
The sooner they get rid of cars in zone 1 altogether the better.
Green taxis and green buses are all that is required during working hours. Deliveries and all that st can be done at night.
It will make no odds though, the people that pay to drive in London will pay another £5 to do so.
Green taxis and green buses are all that is required during working hours. Deliveries and all that s
t can be done at night.It will make no odds though, the people that pay to drive in London will pay another £5 to do so.
Prawnboy said:
true, i was just doing a numbers game to show how you can legally pay 20% on 100k.
Of course you could then only spend it within the company.
But it still stands that as a sole trader or Ltd co. earning 100k there is no way in hell you pay anywhere near 40% on your earnings because you can offset so much of what we all would consider day to day costs to bring your taxable earnings below the required threshold.
No large corporation will employ you through a limited company unless you are employed as a consultant which comes with many other disadvantages and only concerns a very small and specific part of their workforce.Of course you could then only spend it within the company.
But it still stands that as a sole trader or Ltd co. earning 100k there is no way in hell you pay anywhere near 40% on your earnings because you can offset so much of what we all would consider day to day costs to bring your taxable earnings below the required threshold.
So the example you are trying to put forward here is really quite marginal.
ftrigger said:
xRIEx said:
Where does the 52% rate come from? The last I heard the highest rate had been reduced from 50% to 45%.
Correct so 47% when you include national insurance. But this reduction is only becoming effective this year, been 52% for a while.Prawnboy said:
NomduJour said:
Dividends are subject to income tax.
true, i was just doing a numbers game to show how you can legally pay 20% on 100k. Of course you could then only spend it within the company.
But it still stands that as a sole trader or Ltd co. earning 100k there is no way in hell you pay anywhere near 40% on your earnings because you can offset so much of what we all would consider day to day costs to bring your taxable earnings below the required threshold.
I'm an IT contractor so I'm well aware of the tax benefits, but its nothing like taking 80k home on 100k turnover. The suprious expenses and adding the wife as an employee you previously mention is tax evasion, not legitimate tax planning for a ltd company employee.
Negative Creep said:
So all those offices and companies will have to extended their opening hours to receive these deliveries? Just have to hope there's nothing urgent in there.
Well, they will have to think of something, I doubt it will be too many years before its almost the situation I describe. They're narrowing roads, making it more cycle/pedestrian friendly every week, so the long term will be that they need to figure that out.Gassing Station | General Gassing | Top of Page | What's New | My Stuff