1st Labour Tory blow up

[Mottie]

The difference is that I am willing to help the nation, and you aren't.

A couple of useful (?) bits of information:

If you have your own company, or a co-operative employer, the company can make contributions to your pension, usually as an alternative to paying you the equivalent amount as earnings. Since these contributions are not wages or salary, they are not subject to income tax, better still, they are not subject to Employee or Employer National Insurance (class 1 secondary).

When I was in business on my own, I think employer NI was 11% (I believe it is now 12.8%).

That means that instead of receiving £100 in salary, which I then paid into my pension, the company could contribute £111.

It is worth taking advantage of this if you are about to wind up your own company and go into employment.

Pension contributions are free of income tax. If you are lucky enough to be paying 40% tax, that means that you can put £100 into your pension fund, and it only takes £60 out of your pocket. A good wheeze!

Funnily enough, if you are unlucky enough not to be paying any income tax this year, but you happen to have a bit of cash, you can pay up to £2808 a year into a pension fund, and they will get basic-rate tax refund to invest into your pension, bringing it up to £3600! Another good wheeze!

I wonder what’s changed Johnny boy. A while ago, he thought it was a good 'wheeze' to milk the tax system. Nowdays he's all against "tax dodging". Maybe he's comfortable and now wants to pull the drawbridge up?

 

[denso13]

One of those was from 18 years ago. You're coming over a bit stalker like now.

 

[Mottie]

One of those was from 18 years ago. You're coming over a bit stalker like now.

Does it matter how long ago it was? Not hard to do using the search button. I have no say in it how far it goes back. I just searched Johnny and tax and free. You can search any of my posts back to the day I joined. Perhaps you could request that it only goes back….how long would you like? You decide what’s fair and how the search facility works and let the site owners know, I’m sure they’ll be guided by you.

 

[denso13]

You decide what’s fair and how the search facility works and let the site owners know, I’m sure they’ll be guided by you.

Don't be silly.

 

[ajohn]

Critics point out that CGT rates are substantially lower than income tax. They say this can benefit wealthier people and Ms Reeves could opt to level the playing field or cut some CGT tax breaks for businesses."

That seems likely. The only one I have heard anything about is concerns relief given to one particular aspect. A classification that does offer this. The complaint relates to what they are actually achieving with their money. The word entrepreneur springs to mind but it was just a mention. Perhaps it's lacking in terms of UK jobs - pass. Not enough info.
However CGT is another apple cart as most tax aspects are.

Under the current system, savers receive tax relief at the same rate as their income tax - meaning basic rate taxpayers receive relief at 20% and higher rate taxpayers at 40 or 45%"

In some respect the arrangement is sensible. The money is invested and the gov can expect more tax take when its drawn. Inflation figures too. Also a higher earner will want a higher pension payment and may well still find themselves paying higher taxation rates.

We can eat them when times get hard.

True if you fancy a high fat diet but once again it depends on what is done with the money. Take corporations. The FED notice they have moved from a typical profit % of 12 to 15. That reflects on dividends, profitability of shares. another rats nest of complications. There are incentives to encourage capital investment. No idea how much is used but a company view is simple. It relates to the amount of labour, profitability and market sizes.The busy fool argument may even figure. If it doesn't result in a worth while increase in profit it will do.

 

[motorbiking]

I wonder what’s changed Johnny boy. A while ago, he thought it was a good 'wheeze' to milk the tax system. Nowdays he's all against "tax dodging". Maybe he's comfortable and now wants to pull the drawbridge up?

It's only other people's taxes that are important to JohnD. He's just sour that when he had his own company he didn't think of issuing himself stock.

 

[Mrs Doubtfyre]

I wonder what’s changed Johnny boy. A while ago, he thought it was a good 'wheeze' to milk the tax system. Nowdays he's all against "tax dodging". Maybe he's comfortable and now wants to pull the drawbridge up?

Chuffin eck, you've gone back 18 years now.
Did you start at the end and work backwards?
Or did you start at the beginning and work forwards?

 

[Mrs Doubtfyre]

Nah. Just search under his name and type in European investments and you’ll see all his brag posts. He's quite proud of them.

But the topic was about Brexit, not taxable earnings.

 

[JohnD]

It's only other people's taxes that are important to JohnD. He's just sour that when he had his own company he didn't think of issuing himself stock.

I see biking has fallen back on his habit of inventing false stories hoping they will be mistaken for evidence.

But his dishonesty is too widely known to be trusted.

 

[motorbiking]

Remind me again where you said how much of your income you are happy to pay in tax.

 

[JohnD]

I am willing, as I said, for the tax regime to change so I pay an additional 1% on income tax, and 1% on wealth, to help the country repair the damage and progress towards prosperity.

That frightens you because you hate the idea that the same rules would apply to you.

Don't you want the country to be repaired?

Or are you hoping the poor will pick up the bill? When they suffered from the austerity and did not benefit from the increase in wealth?

Which country are you hoping to retire to?

Will it give you handouts?

 

[JonathanM]

I am willing, as I said, for the tax regime to change so I pay an additional 1% on income tax, and 1% on wealth, to help the country repair the damage and progress towards prosperity.

That frightens you because you hate the idea that the same rules would apply to you.

On the other thread, hasn't MBK said he would be willing to pay another 6%; 50% up from 44%? Unless I have misunderstood!

 

[motorbiking]

correct - I don't think its fair for the state to take more than half of my income, no matter how much I earn.

 

[JonathanM]

correct - I don't think its fair for the state to take more than half of my income, no matter how much I earn.

I can see that is a psychological barrier. So just to clarify, it sounds like you are saying 50% of total income, not that 50% should be the highest tax band?

 

[ajohn]

Remind me again where you said how much of your income you are happy to pay in tax.

I think we need a more modern income tax set up. Maybe USA style but there are others, Our average wage is about $45k

Taxable income (USD)	Tax rate (%)
0 to 11,000	10
11,001 to 44,725	12
44,726 to 95,375	22
95,376 to 182,100	24
182,101 to 231,250	32
231,251 to 578,125	35
578,126+	37