Tax - how much of your gross do you pay?
- Thread starter coolsurfer
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I remember when the owner moved to Switzerland to avoid paying tax in the UK...
Anyway, why should one pay more tax than one is legally obliged to?
I'm self employed and take full advantage of the benefits. However, I pay a small fortune in social security payments and therefore contribute to the system.
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I based this on £50k earnings just to give you all a flavour of the tax saving:
I still pay tax, just not as much as I would as an employee. I'd also have to factor in all that fuel doing 15-20k miles.
I still pay tax, just not as much as I would as an employee. I'd also have to factor in all that fuel doing 15-20k miles.
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My last payslip says I paid £1103.73 in TAX and NI in total for the month
Damn that tax man. But I sleep easy knowing I contribute to the UK. Unlike the OP - why don't you just leave the UK, you're a bane on our society. You will certainly be using more tax funding than you are putting in.
How am I using more tax funding than I put in? I'm genuinely intrigued. If anything the government saved a ton of cash as my brother and I spent secondary school in private school - minimising tax now is one way to recoup all that hard earned dosh my parents spent if you will.
If I kept my previous job I wouldn't have been entitled to child benefit - another perk of operating as a limited company is my salary/taxable income now falls below child benefit thresholds. I will now put all the child benefit into an childrens ISA with hargreaves and buy some funds, ETF's or investment trusts with it. Should be a nice pot for my little baby when he's older. Should I adjust the above chart to add that back in? That's £1066 back to me a year and would reduce the % Gross as Tax to: 9.88%
I'm thinking of adding my retired father as an employee to do book keeping, say £500/month salary. Would get rid of the dividend tax I have to pay. Bad idea?
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I am trying to discuss the fairness of the UK tax system. And whether it is deemed justifiable to follow what the large corporations are doing in terms of tax minimisation.
Also if its not fair, what is the fair rate of tax? Last time I checked Google pays an effective rate of 3%. Employed I would have paid 27%. Is there a midway figure that is fair when looking at what the mega corporations earning billions do? Many think not but if you have a pension invested in such companies then it would indeed be hypocritical.
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Well the key point here is you don't have the money
Also would he be taxed on it? I assume he gets pension payments. Does he want to get taxed on it?
One persons fair is another persons unfair so pointless debate.
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Well the key point here is you don't have the money
Also would he be taxed on it? I assume he gets pension payments. Does he want to get taxed on it?
No pension payments, he has stocks and savings in ISA's, gets dividends. The idea is to reduce my dividends and pay him salary using that.
Does he need the money? And I take it he isn't eligible for state pension then.
The key point is yes you save tax, but you still have less money!
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Sorry I guess too much subturfuge (he would give it back to me -pay my mortgage)
You're not though, are you? You're trying to get a rise out of people. Like finishing an argument and walking away and then turning back to carry it on.
You can have a discussion about the fairness of the UK tax system without every post being 'oh btw might avoid paying some more if I do x'. Presumably employing your father to reduce your tax liabilities and then having him pay the mortgage on you property crosses over into evasion but I know very little about it because I don't need to know.
did you take dividends before this new tax year? before they were 10% rate but paying the tax on them was optional.. if you can believe that. now it is 7.5% without the option and it has to be paid. setting your "pay" low.. but not setting up PAYE and opting out of paying tax on dividends you could take home quite a chunk before income tax hit you 
. helped if you had a good accountant that helped you use your directors loan too.
gone are the good old days.
. helped if you had a good accountant that helped you use your directors loan too.gone are the good old days.
FFS :
Quoted again, this is the reason from someone who has been contracting for many years and sees it everyday.
Now continue to ignore it, or continue the usual GD BS.
No wonder this country is ****ed up if GD is a representation of society. And apparently GD is the clever side as they are online with education.
It makes me despair how many people can't see this or don't have the capability to work it out.
Here is a cat picture, that usually works
Quoted again, this is the reason from someone who has been contracting for many years and sees it everyday.
Now continue to ignore it, or continue the usual GD BS.
No wonder this country is ****ed up if GD is a representation of society. And apparently GD is the clever side as they are online with education.
It makes me despair how many people can't see this or don't have the capability to work it out.
Here is a cat picture, that usually works
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