Reply to: Taxes - what taxes

[doodab]

No I'm saying the top 1% pay 25% of tax. They can decide not to pay we would be bankrupt in a week.

The 80-90K are paying 20K in tax in real terms after costs (NHS,Education etc) , a millionaire earner is paying £450 in tax in real terms.

so one >£1M earner = 25 * 80-90K earner.

The million pound earner is more likely to spend on goods / services as well.

£80K is enough to pay the mortgage and eat out a few times.

Note they mention the top 10%, what they don't mention is :

http://www.hmrc.gov.uk/statistics/ta...iabilities.pdf

the richest 1% of taxpayers by total income accounted for a 11.5% share of
total income and 25.0% of tax liabilities.

Table 2.5 also shows that there are
small numbers of taxpayers with very high incomes, including an estimated
10,000 with incomes above £1,000,000, among which 3,000 have income above
£2,000,000. The distribution of taxpayers by total income therefore exhibits
significant right skew.

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These people have a lot of money and can afford to live abroad for > 180 days if need be.

See Philip Green etc.

or they will arrange to move the money out / spend in a way that reduces their tax liability.

Put up corporation tax and they would benefit most from the corresponding reduction in personal taxes.

[AtW]

No I'm saying the top 1% pay 25% of tax. They can decide not to pay we would be bankrupt in a week.

No, it won't lead to bankrupcy - there is 0% chance they would stop being tax residents at the same and it would be very hard for them to do so given that residency rules are no longer "183 days in country".

Those of them who had the chance to quit UK tax rates has already done so.

[vetran]

And?!?!?!

You are not saying everybody on £80-90k will just decide to move to another country to start afresh there?

No I'm saying the top 1% pay 25% of tax. They can decide not to pay we would be bankrupt in a week.

The 80-90K are paying 20K in tax in real terms after costs (NHS,Education etc) , a millionaire earner is paying £450 in tax in real terms.

so one >£1M earner = 25 * 80-90K earner.

The million pound earner is more likely to spend on goods / services as well.

£80K is enough to pay the mortgage and eat out a few times.

Note they mention the top 10%, what they don't mention is :

http://www.hmrc.gov.uk/statistics/ta...iabilities.pdf

the richest 1% of taxpayers by total income accounted for a 11.5% share of
total income and 25.0% of tax liabilities.

Table 2.5 also shows that there are
small numbers of taxpayers with very high incomes, including an estimated
10,000 with incomes above £1,000,000, among which 3,000 have income above
£2,000,000. The distribution of taxpayers by total income therefore exhibits
significant right skew.

----------


These people have a lot of money and can afford to live abroad for > 180 days if need be.

See Philip Green etc.

or they will arrange to move the money out / spend in a way that reduces their tax liability.

[AtW]

The poorest 10% pay £4,000 in tax (mostly indirect, VAT, excise duty). But, receive over £5,000 in tax credits and benefits.
The richest 10% pay over £30,000 in tax (mostly direct, income tax). They receive around £2,000 in benefits.
Overall, the average household pays £12,000 in tax and receives £5,000 in benefits.

And?!?!?!

You are not saying everybody on £80-90k will just decide to move to another country to start afresh there?

[vetran]

from your link:

The poorest 10% pay £4,000 in tax (mostly indirect, VAT, excise duty). But, receive over £5,000 in tax credits and benefits.
The richest 10% pay over £30,000 in tax (mostly direct, income tax). They receive around £2,000 in benefits.
Overall, the average household pays £12,000 in tax and receives £5,000 in benefits.

[AtW]

get rid of 50% of top payers and the rest of us (all levels) need to pay 30% more tax.

Income tax is 30% of total budget revenues - NIC is also hidden income tax but I reckon majority of NIC is taken from people who can't avoid taxation (PAYE).

Tax Revenue Sources in UK - Economics Blog

Those rich who wanted to fook off has already done so, it's not unreasonable to expect that they pay same taxes as everybody else in this country.

[vetran]

Taxpayers have got 4 options:

1) earn more to get more
2) whine about it
3) fook off somewhere else
4) fook with HMRC and get fooked in return
5) get onto benefits ladder

I've chosen combination of #1 and #2.

problem is most of the well off choose 3 or tax advice, however as much of the tax is paid by a small minority you don't want to encourage them to leave.

get rid of 50% of top payers and the rest of us (all levels) need to pay 30% more tax.

[AtW]

Have you paid the final HP installment on that sofa yet?

[Mich the Tester]

Do I look like a person who needs financial advice?

Have you paid the final HP installment on that sofa yet?

[AtW]

Just goes to show how much you know AtW. Commissions can no longer be charged on the back of financial advice. If you want financial advice you have to pay for it on a time and materials basis

Do I look like a person who needs financial advice?

Fixed cost to get legal opinion is actually ok.

Charging ongoing %-tage of revenue that will have tax reduced due to complex scheme is a clear pointer that it is not a legal (or working) thing to do.

[DodgyAgent]

Asking for money in order to give tax advice of supposed legal way to reduce tax massively is a good sign it's most likely not legal (or "not working" as HMRC seems to put it).

Just goes to show how much you know AtW. Commissions can no longer be charged on the back of financial advice. If you want financial advice you have to pay for it on a time and materials basis

[DodgyAgent]

I'll tell you for £1000.

I will tell you for £999

[AtW]

I'll tell you for £1000.

Asking for money in order to give tax advice of supposed legal way to reduce tax massively is a good sign it's most likely not legal (or "not working" as HMRC seems to put it).

[d000hg]

I am not aware of a legal way to pay 3.5% income tax other than in cases when income is just over personal allowance.

I'll tell you for £1000.

[AtW]

Like legally being able to pay 3.5% on your income, and legally being able to pay VAT in another EU nation?

I am not aware of a legal way to pay 3.5% income tax other than in cases when income is just over personal allowance.