underwriter Posted December 18, 2014 Report Share Posted December 18, 2014 Is there anyone in here on over the threshold of 45%+ tax? For minions like us, the general public, can we change our tax so we pay less, like all the famous celebs out there do? Or is that a complicated scenario...? Quote Link to comment Share on other sites More sharing options...
local Posted December 18, 2014 Report Share Posted December 18, 2014 U switch urself up to a limited company, pay urself a basic wage n pay urself the rest in dividends so you never pay more than 21% tax Well worth an accountant Quote Link to comment Share on other sites More sharing options...
local Posted December 18, 2014 Report Share Posted December 18, 2014 No idea about these big boy tax loopholes tho Investing in certain industries u get tax breaks or saink Quote Link to comment Share on other sites More sharing options...
dub Posted December 18, 2014 Report Share Posted December 18, 2014 Tax is emotional, when you hit that 40% you understand why conservatives have the stance they do. In all honesty I don't think you should need to be taxing people more than 40%, the issue is people will find ways to not pay tax on all their earnings anyway. I know a few people who have that same thing Jimmy Carr got exposed for, something like the money goes straight into a trust (without being taxed) and you withdraw when and where you need, not sure if it can be transferred to a 3rd party without being taxed. 1 Quote Link to comment Share on other sites More sharing options...
underwriter Posted December 18, 2014 Author Report Share Posted December 18, 2014 U switch urself up to a limited company, pay urself a basic wage n pay urself the rest in dividends so you never pay more than 21% tax Well worth an accountant what if you are working for a company already on like 55k? you just tell the company you wanna go contract/self employed etc? Quote Link to comment Share on other sites More sharing options...
local Posted December 18, 2014 Report Share Posted December 18, 2014 fuck knows Quote Link to comment Share on other sites More sharing options...
Yoshie Posted December 18, 2014 Report Share Posted December 18, 2014 U switch urself up to a limited company, pay urself a basic wage n pay urself the rest in dividends so you never pay more than 21% tax Well worth an accountant what if you are working for a company already on like 55k? you just tell the company you wanna go contract/self employed etc? You'd have to get hired as a contractor, not as simple as just saying pay me as a contractor. For instance, if I worked out what I get paid daily as a perm - say it's £120. http://www.sjdaccountancy.com/contractor_calculator/index.html Put it in this and I'd take home more than I am now as you pay different tax. Quote Link to comment Share on other sites More sharing options...
dub Posted December 18, 2014 Report Share Posted December 18, 2014 You pay the same amount of tax, just it gets paid differently. You pay different national insurance. Quote Link to comment Share on other sites More sharing options...
Niall Ferguson Posted December 18, 2014 Report Share Posted December 18, 2014 Tax is emotional, when you hit that 40% you understand why conservatives have the stance they do. In all honesty I don't think you should need to be taxing people more than 40%, Bingo. Microeconomics is one of the biggest reasons I'll probably be voting for the Conservative Party. Quote Link to comment Share on other sites More sharing options...
Badman Posted December 18, 2014 Report Share Posted December 18, 2014 You pay the same amount of tax, just it gets paid differently. You pay different national insurance. This is not the case, As a contractor with a ltd company you pay no more than 20% as you pay yourself a salary up to your tax free allowance (which in turn allows you to avoid income tax and PAYE tax (national insurance) then you pay the rest as dividends which is a flat rate of 20% If you are very smart you can save some money off your tax bill by claiming some tax back on certain goods like office equipment and expenses, you can even claim back some VAT too So in reality you can go as low as 18/17% (even lower if you have a good accountant) The loopholes are nuts and there's not a darn thing HMRC can do about it. Heck you can be even more snide and have an offshore company in a tax haven country and pay next to nothing in tax but imo that's taking it too far. One of my boys does this, he opened up a company in Sicily. good luck to him if HMRC pulls him up for an audit. In any case I can see that OP is inadvertently trying to boast about being on some high salary but you must be some kind of mug to be paying 45% tax tbh Quote Link to comment Share on other sites More sharing options...
underwriter Posted December 18, 2014 Author Report Share Posted December 18, 2014 badmans a badman Quote Link to comment Share on other sites More sharing options...
Niall Ferguson Posted December 18, 2014 Report Share Posted December 18, 2014 It's an empty boast. Chaps is unemployed. Working people pay HIIM. Quote Link to comment Share on other sites More sharing options...
Badman Posted December 18, 2014 Report Share Posted December 18, 2014 Nah Underwriter is Imhim, a Canary Wharf don Your right about chaps though Quote Link to comment Share on other sites More sharing options...
Niall Ferguson Posted December 18, 2014 Report Share Posted December 18, 2014 Nah Underwriter is Imhim, a Canary Wharf don Your right about chaps though You actually believe this? Quote Link to comment Share on other sites More sharing options...
Badman Posted December 18, 2014 Report Share Posted December 18, 2014 Was sarcasm tbh Quote Link to comment Share on other sites More sharing options...
dub Posted December 18, 2014 Report Share Posted December 18, 2014 Where have you read that you only pay 20% tax after personal allowance? Quote Link to comment Share on other sites More sharing options...
Badman Posted December 18, 2014 Report Share Posted December 18, 2014 I didnt say that. employees pay Income tax and PAYE via salary, companies pay corporation tax via dividends If you have a limited company as a contractor you can take money out using both methods by being an employee of your own company and paying yourself up to the tax free allowance and take the rest out as dividends as you are the sole stakeholder of the company as company director Corporation tax is flat rate 20% Quote Link to comment Share on other sites More sharing options...
dub Posted December 18, 2014 Report Share Posted December 18, 2014 Oh sorry, I thought you were saying you being a contractor working for an LTD, not as one. My assumption was we were talking about being self employed. Cool, yeah, got ya. Quote Link to comment Share on other sites More sharing options...
Badman Posted December 18, 2014 Report Share Posted December 18, 2014 Yeah I see the confusion, I think somebody mentioned in this thread that you could be a contractor and a company pays you. But this would make you a sole trader, thats different to being a contractor working for a company and invoicing them by fronting your own limited company. In this way the company would pay your limited company...then in turn your limited company pays you (Via mixture of salary and dividends) btw the way you tax as a sole trader is completely different lol (Gets even more complicated) they can claim back more VAT than a limited company can but in turn have to pay back higher tax (think similar to salary rates) Its hard to get your head around it lol Quote Link to comment Share on other sites More sharing options...
JOHN DOE Posted December 22, 2014 Report Share Posted December 22, 2014 Dunno why my man's making this topic when he is unemployed. Leave your pointless life questions to google 1 Quote Link to comment Share on other sites More sharing options...
Corrigan Posted December 22, 2014 Report Share Posted December 22, 2014 Bgxsyb xgb xgb sy ssxhyxs Quote Link to comment Share on other sites More sharing options...
Hipster Posted January 12, 2015 Report Share Posted January 12, 2015 I watched this docu-series last night. It's a good watch for those that are interested in tax and the super rich. http://www.bbc.co.uk/iplayer/episode/b04xw2x8/the-superrich-and-us-episode-1 However, after watching this i began to feel disappointed and disillusioned with the Tory government. Before i even watched this my stance was " i'm voting for conservatives" "They are cutting tax" "They are building back our economy" After watching this show i will be voting for Labour party. Quote Link to comment Share on other sites More sharing options...
TF S4DK Posted January 12, 2015 Report Share Posted January 12, 2015 You needed a programme to tell you this? Quote Link to comment Share on other sites More sharing options...
Niall Ferguson Posted January 12, 2015 Report Share Posted January 12, 2015 I watched this docu-series last night. It's a good watch for those that are interested in tax and the super rich. http://www.bbc.co.uk/iplayer/episode/b04xw2x8/the-superrich-and-us-episode-1 However, after watching this i began to feel disappointed and disillusioned with the Tory government. Before i even watched this my stance was " i'm voting for conservatives" "They are cutting tax" "They are building back our economy" After watching this show i will be voting for Labour party. LOL at voting Labour because of some BBC documentary. You seem to forget that it was their overspending and lack of useful regulation of the City that we got into a financial crisis in the first place. I agree with you that it also made me think very carefully about the economic situation though. All the parties are useless in reality. Your best bet is to do everything within your power to make yourself financially viable. Also, don't forget that it was a pretty loaded documentary. Quote Link to comment Share on other sites More sharing options...
Hipster Posted January 12, 2015 Report Share Posted January 12, 2015 I watched this docu-series last night. It's a good watch for those that are interested in tax and the super rich. http://www.bbc.co.uk/iplayer/episode/b04xw2x8/the-superrich-and-us-episode-1 However, after watching this i began to feel disappointed and disillusioned with the Tory government. Before i even watched this my stance was " i'm voting for conservatives" "They are cutting tax" "They are building back our economy" After watching this show i will be voting for Labour party. LOL at voting Labour because of some BBC documentary. You seem to forget that it was their overspending and lack of useful regulation of the City that we got into a financial crisis in the first place. I agree with you that it also made me think very carefully about the economic situation though. All the parties are useless in reality. Your best bet is to do everything within your power to make yourself financially viable. Also, don't forget that it was a pretty loaded documentary. I am fully aware of that. And the Tories have tried to stabilise our economy. / This documentary did not make me decide on who i might vote for, it just made me understand things a lot more about the divide between us and the elite. i do agree with you in regards to making myself more financially viable so it does not become an issue for me. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.