Self-Assessment Tax (40%+)
Discussion
Gotta love it. In addition to my PAYE 'day' job, the b
ds have already had £21K of my hard earned in January. Now they want more - more for the 'NHS, roads and Schools'. Well that's ok then, why didn't you say so. Apparently, though, it's 'easy' to pay, in advance, for money you haven't yet earned, just so the govt can simply piss even more of it up the wall in so very many inventive and useless ways.
Enough is enough.
ds have already had £21K of my hard earned in January. Now they want more - more for the 'NHS, roads and Schools'. Well that's ok then, why didn't you say so. Apparently, though, it's 'easy' to pay, in advance, for money you haven't yet earned, just so the govt can simply piss even more of it up the wall in so very many inventive and useless ways. Enough is enough.
Diderot said:
Gotta love it. In addition to my PAYE 'day' job, the bds have already had £21K of my hard earned in January. Now they want more - more for the 'NHS, roads and Schools'. Well that's ok then, why didn't you say so. Apparently, though, it's 'easy' to pay, in advance, for money you haven't yet earned, just so the govt can simply piss even more of it up the wall in so very many inventive and useless ways.
Enough is enough.
Could be worse, could be 50%.ds have already had £21K of my hard earned in January. Now they want more - more for the 'NHS, roads and Schools'. Well that's ok then, why didn't you say so. Apparently, though, it's 'easy' to pay, in advance, for money you haven't yet earned, just so the govt can simply piss even more of it up the wall in so very many inventive and useless ways. Enough is enough.
Look on it as your patriotic duty.
Conversely, stop earning so much and be poor.
Or maybe ask an accountant to look at your situation. What is the source of the additional income that put you into the Higher Rate tax band?
Diderot said:
Cheers Eric - I have an accountant, and a ltd co for my other business. As ever the issue is, my day job pushes me well over the 40% threashold, so everything else coming is basically stolen by the government. Just drives me mad. Sorry for moaning, must be the lack of sun today 
By leaving money in your company, you could mitigate how much you pay at the 40% rate.You could also try and make use of expense claims etc from the company in an effort to extract money from the company tax free.
But I'm sure your accountant sorts this out for you anyway
Eric Mc said:
Could be worse, could be 50%.
Look on it as your patriotic duty.
Conversely, stop earning so much and be poor.
Or maybe ask an accountant to look at your situation. What is the source of the additional income that put you into the Higher Rate tax band?
Could be even worse & the 60% thats paid at certain income levels, thanks to the removal of personal allowences at that certain income level! Look on it as your patriotic duty.
Conversely, stop earning so much and be poor.
Or maybe ask an accountant to look at your situation. What is the source of the additional income that put you into the Higher Rate tax band?
What is the threshold for advance payment on self-assessment tax?
I'm still doing my after the tax period and they seem happy. I'm earning under the 40% bracket on my PAYE job, but over and about the 40% threshold with my self-assessment added on.
I'm guessing this is 40% on the earnings over the top-rate threshold on taxable income?
Dave
I'm still doing my after the tax period and they seem happy. I'm earning under the 40% bracket on my PAYE job, but over and about the 40% threshold with my self-assessment added on.
I'm guessing this is 40% on the earnings over the top-rate threshold on taxable income?
Dave
Diderot said:
Time to move abroad methinks - this country is fked. The level of thievery from these bds knows absolutely no bounds. Might as well give up working like a to pay the bills and do the right thing, and go on the dole and break a few windows now and again to get some new trainers.
Quit moaning.ked. The level of thievery from these bds knows absolutely no bounds. Might as well give up working like a to pay the bills and do the right thing, and go on the dole and break a few windows now and again to get some new trainers. Stay here - work the system - help the country - instead of running away.
In most European countries you will pay even more tax.
I am pretty sure that the 50% tax will be a temporary measure as already Osborne is making noises that he want to get rid of it.
A 40% top rate of tax is actually not bad and we had it as our top rate for many, many years.
Mr Whippy said:
What is the threshold for advance payment on self-assessment tax?
I'm still doing my after the tax period and they seem happy. I'm earning under the 40% bracket on my PAYE job, but over and about the 40% threshold with my self-assessment added on.
I'm guessing this is 40% on the earnings over the top-rate threshold on taxable income?
Dave
If the additional self assessment element of your overall tax bill for the year is under £2,000, they will not ask you to make Self Assessment tax Payments on Account for the following year.I'm still doing my after the tax period and they seem happy. I'm earning under the 40% bracket on my PAYE job, but over and about the 40% threshold with my self-assessment added on.
I'm guessing this is 40% on the earnings over the top-rate threshold on taxable income?
Dave
If the additional self assessment element of your overall tax bill for the year is less than 20% of your overall tax bill for the year (even if it exceeds £2,000) , they will not ask you to make Self Assessment tax Payments on Account for the following year.
If you know that your Self Assessment tax bill for the following year is going to be lower than the year you have just calculated, you can make an application to reduce the Payments on Account for the following year to a lower amount - or even cancel them altogether.
Eric Mc said:
Quit moaning.
Stay here - work the system - help the country - instead of running away.
In most European countries you will pay even more tax.
I am pretty sure that the 50% tax will be a temporary measure as already Osborne is making noises that he want to get rid of it.
A 40% top rate of tax is actually not bad and we had it as our top rate for many, many years.
40% not bad Eric? You're having a laugh - it's theft, pure and simple; they bend you over and just shaft you without prior lubrication. There should only be a flat rate - 20% ish which would be fair. If they stopped pissing money up the wall on unnecessary wStay here - work the system - help the country - instead of running away.
In most European countries you will pay even more tax.
I am pretty sure that the 50% tax will be a temporary measure as already Osborne is making noises that he want to get rid of it.
A 40% top rate of tax is actually not bad and we had it as our top rate for many, many years.
kery, illegal wars, gloopal wombling arsewipery, benefits etc, then they wouldn't need to arse rape the hard working, honest minority. I might be even able employ someone, if it were not for all the red tape and H&S ery! Diderot said:
.. it's 'easy' to pay, in advance, for money you haven't yet earned
Just to confirm - listen to uncle Eric. Payments on account shouldn't be resulting in "pay in advance". Think of it as paying in the middle of each half-year so breakeven.If applying to reduce Payments on account take care. HMRC will almost certainly accept your reduction (unless they think you'll go bust before you pay!) but if you later have tax to pay you get thumped with a heavy interest charge and there will be penalties as well if you've gone wide of the mark. In other words, proceed with caution unless you are able to forecast a downturn in your income with a good degree of certainty.
GT03ROB said:
Could be even worse & the 60% thats paid at certain income levels, thanks to the removal of personal allowences at that certain income level!
IIRC 62% inc NI 
UK tax was one of the factors why I emigrated to Singapore (similar careerprospects in both countries : HUGE difference in take home pay ) albeit partly soaked up by living costs
To add: top rate tax here is 20% above about $300k or so 
BUT combined cost of road tax and car license is about 4k GBP / annum , car import tax 130% and beer up to10GBP / pint at the better bars.
at least I can choose what to spend my earnings on....
BUT combined cost of road tax and car license is about 4k GBP / annum , car import tax 130% and beer up to10GBP / pint at the better bars.
at least I can choose what to spend my earnings on....
Edited by alfaman on Tuesday 30th August 11:03
alfaman said:
GT03ROB said:
Could be even worse & the 60% thats paid at certain income levels, thanks to the removal of personal allowences at that certain income level!
IIRC 62% inc NI UK tax was one of the factors why I emigrated to Singapore (similar careerprospects in both countries : HUGE difference in take home pay ) albeit partly soaked up by living costs
There are upsides and downsides with low tax regimes. Low tax regimes tend to favour the young and the fit. They don't work out so well for the old and infirm - especially if that old or inform person is an immigrant without the extended family that the natives will be able to rely on.
Also, as mentioned above, paying less tax is fine but you may have extra costs that will eat away at the savings you thought you made.
Emigration should be for more fundamental reasons than tax.
Eric - agree with some of that (particularly the old age stuff ...that is a bit of an issue here)
tax wasn't the only reason I moved - (and I DO miss the outdoors in the UK ) but it means my remaining work years from now to retirement are close to half what they would have been if UK based ...I do not want to HAVE to work after my mid fifties latest.
I will probably spend my time in several countries when retired - but be UK domiciled. ( unless I end up marrying out here for example...)
tax wasn't the only reason I moved - (and I DO miss the outdoors in the UK ) but it means my remaining work years from now to retirement are close to half what they would have been if UK based ...I do not want to HAVE to work after my mid fifties latest.
I will probably spend my time in several countries when retired - but be UK domiciled. ( unless I end up marrying out here for example...)
Eric Mc said:
Mr Whippy said:
What is the threshold for advance payment on self-assessment tax?
I'm still doing my after the tax period and they seem happy. I'm earning under the 40% bracket on my PAYE job, but over and about the 40% threshold with my self-assessment added on.
I'm guessing this is 40% on the earnings over the top-rate threshold on taxable income?
Dave
If the additional self assessment element of your overall tax bill for the year is under £2,000, they will not ask you to make Self Assessment tax Payments on Account for the following year.I'm still doing my after the tax period and they seem happy. I'm earning under the 40% bracket on my PAYE job, but over and about the 40% threshold with my self-assessment added on.
I'm guessing this is 40% on the earnings over the top-rate threshold on taxable income?
Dave
If the additional self assessment element of your overall tax bill for the year is less than 20% of your overall tax bill for the year (even if it exceeds £2,000) , they will not ask you to make Self Assessment tax Payments on Account for the following year.
If you know that your Self Assessment tax bill for the following year is going to be lower than the year you have just calculated, you can make an application to reduce the Payments on Account for the following year to a lower amount - or even cancel them altogether.
Tax doesn't have to be taxing my arse
I'll definitely be using an accountant when all this stuff starts happening as there is no way I can invest the time to learn all this stuff for the sake of paying an accountant in the first place (who I guess can go against costs for tax purposes
)How much economic drag must be generated by such complex tax rules!
Dave
An accountant's costs can only be offset against tax is particular limited circumstances. Technically, ANY advice an accountant gives of a purely tax nature is NEVER allowed. Only ACCOUNTANCY advice and assistance is tax deductable. Therefore, ann accountant's fee that covers an individual's preparation of accounts for a business or a property rental WILL be allowable but the advice and help in completing the persomnal tax return will not.
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