Tax - how much of your gross do you pay?

From my p60 last year made 41k tax and ni deductions were about 10k

So just under 25% of mt pay is directly taken in tax and ni.

coolsurfer said:
Yes soon I could run a pain clinic and prescribe Tramadol for you ;-)

Basically by January 2017 I will have the power to prescribe all drugs (except diamorphine for addiction) within my competence (pretty much everything except chemotherapy drugs) using NHS prescription pads or my own (private prescriptions). I'll be the guy signing repeat prescriptions at a surgery so the doctor doesn't have spend time to do it and instead can concentrate on seeing more patients (there's a GP shortage).

Locum Doctors get paid >£100 an hour but they mostly don't sign repeat prescriptions only acute ones. Prescribing Pharmacists will start filling in the gap so doctors can just be doctors and spend all their time with patients.
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Can you get me back my codine :p
 
I've paid no UK tax this year cause I've been an expat, first time i have ever got an NT code.

HOWEVER my contract is "tax equalised" which means i instead pay tax on my basic salary to my employer.......

If you think you hate paying tax tot he government try paying it to the people you work for and have laid half your friends and colleges off this last year.
 
I liked the cat picture but it got me thinking and it looks like he or she is upset with the amount of tax being paid by everyone in the thread. :(
 
coolsurfer said:
I based this on £50k earnings just to give you all a flavour of the tax saving:

rR2A5jql.jpg



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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I don't see the issue when you are paying that much into a pension.

People need to factor in the reduced burden on the state into pensioner years plus the fact a pensioner with a pretty penny will spend and put money back into the economy.

It's no different if you look at the long game.

Low earners are having the threshold raised. It's us low-mid folk PAYE tax payers that should be annoyed by the system if anything. Can't afford a pension, yet seem to be hit with the highest percentages.

That's the system unfortunately and it won't change anytime soon because it covers the highest proportion of the work market. It's the countries coffers bread and butter.

Whether you have a Labour or Tory government, that gravy train will never be rewarded.
 
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House said:
I've paid no UK tax this year cause I've been an expat, first time i have ever got an NT code.

HOWEVER my contract is "tax equalised" which means i instead pay tax on my basic salary to my employer.......

If you think you hate paying tax tot he government try paying it to the people you work for and have laid half your friends and colleges off this last year.
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I once went to an interview for a job that involved working round the world. The company said the basic rate would be around £13k and that they would be taking off about 30% for tax equalisation. I sat there going... "erm...":eek: Needless to say I was not interested in getting that job, especially considering the hours needed and the flight time would be unpaid...!

coolsurfer said:
I based this on £50k earnings just to give you all a flavour of the tax saving:

rR2A5jql.jpg



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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That's not a fair comparison. There is no pension contribution for the PAYE earner. For a PAYE earner putting the same pension away each year the sums look more like this:

Screen_Shot_2016_05_17_at_22_45_18.png


Still more than a limited company but total tax would be around £10k, not the £13.5 you're suggesting there, that works out as around 20% effective tax rate.
 
Ayahuasca said:
Quite brave of you OP to be so open about it.

It's the system that needs changing but fat chance of that.
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Dividend taxes have been increased recently.

Part of the problem is trying to find a way of being fair to entrepreneurs/small or one man companies vs contractors. It's very much a grey area rather than black and white, so it's hard to create a system that can't be exploited without unfairly penalising legitimate businesses. They tried with IR35 but it wasn't a huge success.
 
coolsurfer said:
Hi folks, this isn't a bragging thread but wanted to have a discussion about what would be a fair % of tax on your earnings/other income.

As a freelance pharmacist My accountant has set my affairs as a limited company such that I earn £670/month salary on which I pay no income tax or NI. The rest of my income comes from dividends. THe company pays 20% corporation tax and then there's some more dividend tax depending on how much I withdraw as dividends during a particular financial year. I will actually gain state pension stamp despite paying no NI.

I have estimated that because of the way my affairs are set up I actually pay just 12-15% of my gross earnings as tax. If I was salaried for the same income instead I would be paying more like 35%.

Is this fair enough on the basis corporations like Google, Amazon, Starbucks, Facebook get away with low single digit percent tax?
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Good for you. I wish I was in a position to minimise my tax liabilities as you have done. If I could do the same as you I would - I personally have no issues with people doing this.

I also hate how you have to declare foreign investments (not that I would) to the HMRC which bring no funding into the UK at all.
 
When Gordon Brown was PM this was the way the treasury recommended self-employed people should set up their tax affairs.

I can't do it this way because I do long term stuff at single companies, so IR35 means me.

Not sure about a lower state burden on retirement... you aren't going to voluntarily give up your state pension, are you ? You specifically mentioned that your NI stamp was paid.

Anyway, if you are eligible and can be bothered with it, make hay :cool: Many morals are specific to individuals so don't feel burdened by your success.
 
OPs tax situation is completely standard for a freelance worker so nothing really to see.
But then he posted about paying his dad £500 a month (LOL) to do his books and I realise he's just a troll.
 
Interesting thread, my GF earns around 11 grand year and pays no tax, claims no benefits, pays for her own flat, lives a 'comfortable' life is she gaming the system?

I wonder what people here think of those that live within the tax free allowance and don't claim benefits.
 
lowrider007 said:
Interesting thread, my GF earns around 11 grand year and pays no tax, claims no benefits, pays for her own flat, lives a 'comfortable' life is she gaming the system?

I wonder what people here think of those that live within the tax free allowance and don't claim benefits.
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Personally I think its fine. Your GF didn't invent the tax system!
 
lowrider007 said:
Interesting thread, my GF earns around 11 grand year and pays no tax, claims no benefits, pays for her own flat, lives a 'comfortable' life is she gaming the system?

I wonder what people here think of those that live within the tax free allowance and don't claim benefits.
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Thats exactly the purpose of the tax free allowance, so that people on low wages are taken out of tax altogether. I have no problem with that.

What I do have problem with are people that arent net contributors moaning about services like the NHS etc of which they contribute little or nothing to and expect others to pick up on the cost so that the services are a quality of which they are happy with. This is a general comment, not aimed at anyone specifically.
 
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