Soldato
- Joined
- 29 May 2005
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- 5,622
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- West London
Many contractors pay little tax (just about legal too)
£400 A Day Tax
- Thread starter albert
- Start date
This. Mohammed Al-Fayed earnt £10m the other year but only paid £1m in tax.
When you earn big, you can set things up trusts, limited companies etc to reduce your tax bill. Same with footballers. I have an accountant friend who sorts the tax affairs on a premiership footballer. His weekly wage from the club pretty much goes through normal PAYE as there is not much you can do about that however, his "image rights" belong to an offshore company based in a very tax lenient country and it is that company which does his shirt deals, aftershave adverts, appearances etc so basically all his additional income to his normal wages is pretty much tax free. Overall I guess he will pay only about 10% tax.
That's the problem with this country, once you are earning £1m per year, it's quite easy to legally get your tax bill down to around 10%. It's middle earners who are full time employees who carry the heaviest tax burden in this country.
Whilst it's a lot of money to pay in tax it's far from unbelivable, to put it into context I pay £108 a day tax so for a city boy to be clearing (what equates to) £250k a year is perfectly reasonable.
He does sound like a strange individual, sending you 10k and now banging on about his tax bill, think he needs a hobby
He does sound like a strange individual, sending you 10k and now banging on about his tax bill, think he needs a hobby
Whilst it's a lot of money to pay in tax it's far from unbelivable, to put it into context I pay £108 a day tax so for a city boy to be clearing (what equates to) £250k a year is perfectly reasonable.
He does sound like a strange individual, sending you 10k and now banging on about his tax bill, think he needs a hobby
250k a year? He earns 80k a MONTH!
It's the 'VC IT' I would be interested in here. If he is a Venture Capitalist specialising in IT, and he is very good, then he would make a large amount of money assuming he backs the occasional winner.
Look at Peter Thiel and Facebook!
If he does he is commiting large scale tax fraud
I'd expect he is either lying or has a highly creative accountant
If he does he is commiting large scale tax fraud
I'd expect he is either lying or has a highly creative accountant
Not really especially if he is a venture capitalist. Lots of tax breaks for investing in companies.
One or several of his companies could be based abroad, most of his pay could be dividends etc
There is a hell of a lot you can do if your earning £1m per annum and self employed/business owner to get your tax down to 10%.
For example, I am aware of a company owner I have dealings with directly who paid 13% tax on his £1.6m gross earnings last year.
I'm quite aware of that, doesn't mean I don't consider it fraud - a rose by any other name
I'm quite aware of that, doesn't mean I don't consider it fraud - a rose by any other name
Well said...Just look at Sir Philip Green! http://en.wikipedia.org/wiki/Philip_Green#Tax_avoidance
I'm quite aware of that, doesn't mean I don't consider it fraud - a rose by any other name
Fair enough. Unfortunately just because you consider it as "fraud" doesn't mean our current laws do. I am sure he could be doing nothing illegal to get his tax bill that low.
Unfortunately, in this country, it's very easy if you are wealthy to legally pay around 10% tax.
Remember, Tax avoidance is okay, Tax evasion isn't
It's also not a viable option for the vast majority of people, people who don't have a disposable income large enough to cushion the redirection of funds to avoid direct taxation.
Making it a tool for the rich and a large bone of contention for everyone else
Soldato
- Joined
- 28 Nov 2004
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- 9th Inner Circle
I'm with Fox. Who earns that much yet feels the need to brag on BookFace?
DOES. NOT. COMPUTE.
DOES. NOT. COMPUTE.
Op hasnt said he brags on FB, just that he got back in touch via there. Though I agree that if he is mentioning this fact continuously via whatever means, he sounds like a ****.
It's also not a viable option for the vast majority of people, people who don't have a disposable income large enough to cushion the redirection of funds to avoid direct taxation.
Making it a tool for the rich and a large bone of contention for everyone else
Totally agree. It's a tool for the rich only and not available to a person who is employed via PAYE on £40,000+ plus and basically has to suffer 40% tax or greater.
However, since most of our politicians make good use of tax avoidance, who's going to ever change it?