Possible Tax Cuts on the way

BACKFRMTHEEDGE

drbeat wrote: »

Looks like I'm next :j

Truly you are not worth bothering with

drbeat

BACKFRMTHEEDGE wrote: »

Truly you are not worth bothering with

Well I'm sorry to hear that - perhaps if I were female it would be a different story eh?

kennyboy66_2

PasturesNew wrote: »

I am currently looking for work. To earn more than about £15k in most areas I will have to go contracting in my specialism. When contracting I pay:
- an umbrella company to sort out the tax/paye
If I go over the 40% tax threshold, the figures are then:
40% tax
10% employer's NI
10% employee's NI
10% holiday pay (which I do get back)

---

70% taken from the wage packet each week/month. Certainly 60% tax

You figures simply look wrong, I thought you would pay;

Employers N.I. of 12.% applied to all gross earnings
Employees N.I. of 11% paid on all earnings within lower bracket.
Employees N.I. of 1% paid on all earnings within upper bracket.
PAYE of 40% paid on all earnings within higher rate tax bracket.

It is impossible to pay "tax" (paye tax & NI combined) of 60%

If there are no benefits to being classed as a "contractor" then why do people simply not work through the "agency" route, which is more normal for lower paid temporary workers & was the norm for temporary accountants 10 years ago ?

mitchaa

Spiv wrote: »

Sorry I can't agree with this. 50% is really 60% (with NI etc)..too much:eek:

No it's not.

Do your homework.

I have already proven that it is impossible to pay anymore than 41% in direct taxation. If the higher rate tax was put up to 50% then max possible would be 51%.

N.I is 1%, not 11%. (When earnings are in the high rate bracket)

40% I.T +1% N.I.C = 41%

However due to the basic rate and personal allowance, it is impossible to pay the full 41%. You would need to earn over £600k to even pay 40%.

Someone earning £50000 (So a high rate tax payer) doesn't even pay an overall 30% in taxation. (Considering the BR is 20%, the higher rate is 40% and the N.I rate is 11%(At BR) you would imagine the tax burden to be a lot higher than 30%, it's not though

PN...I believe your sums are incorrect, you are missing 1 of the main points about being S.E, tax evasion and offsetting imaginary expenses

I done a bit of contracting about 2yrs ago through an umbrella agency and i received about 88% of my gross pay into my bank account every week.

Cannon_Fodder

I was going to see if there was an easy sum on a Govt website to help confirm the maths, to save further argument...

But http://www.hmrc.gov.uk/guidance/cwg2.pdf is 111 pages long, and includes the statement;

"This guide reflects the position at the time of writing.
It is not comprehensive and has no legal force."

Its worrying that the Govt cannot write guidance that they have faith in themselves.



Page 6 of http://www.hmrc.gov.uk/helpsheets/e12_2.pdf is a bit more helpful.

Table A "Earnings above ET up to and including UEL = 11%"
Contributions "Balance of earnings above UEL = 1%"

I read it as 11% for everyone then an extra 1% over the Upper threshold. Could be wrong. There are usually ways around most taxes.

i.e various type of Contribution Table A thru S, and Contracted-Out or Not would also vary by person, I guess.


Don't pretend to understand the myriad options. This is exactly what is wrong with taxation in this country.

If you are well-paid enough to have an accountant to tell you how to pigeon-hole yourself into a category that minimises tax, then IMO you should pay the same as the majority of the population.


Time to simplify, cut bureaucracy and end up with more in the pot, methinks.

AntWal

I cannot see that the tax cuts will be very large. The amount of money they used to rescue the banks has already drained public resources. With the slump in the housing market and job insecurity it will take a significant tax cut to make people feel they can spend a bit more. Let's see how bold they are.

neverdespairgirl

BACKFRMTHEEDGE wrote: »

If your gonna spend money it might as well be on something worthwhile...or are you the the little rich housewife who is quite happy to see three milion on the dole. I never see you come to the defence of those less fortunate than yourself....

Um. No. I'm not rich (although earn decently), I work, and I'm not a wife. Otherwise, bang on.

On these boards, I do spend some time advising those "less fortunate" than myself.

I also do pro bono work with bankruptcy cases and immigration cases.

neverdespairgirl

mitchaa wrote: »

I have already proven that it is impossible to pay anymore than 41% in direct taxation. If the higher rate tax was put up to 50% then max possible would be 51%.

.

NOT IF YOU ARE SELF-EMPLOYED.

Sorry to shout, but I have said this before.....

moanymoany

The Country's income going down in every direction

VAT - down as less stuff is being bought and fewer servicesare being used.

Tax - less paid as incomes fall and unemployment rises.

Stamp Duty - little selling

And spending increased in every direction

Benefits rising - bigger drain.

Iraq and Afganistan - constant drain.

Bailing out banks - massive drain.

Anything else - can we afford it?

WTF?_2

moanymoany wrote: »

The Country's income going down in every direction

VAT - down as less stuff is being bought.

Tax - less paid as incomes fall and unemployment rises.

Stamp Duty - little selling

And spending increased in every direction

Benefits rising - bigger drain.

Iraq and Afganistan - constant drain.

Bailing out banks - massive drain.

Anything else - can we afford it?

.... and don't forget that there are emerging signs that the government will have complications raising the cash they need to borrow by issuing bonds in the future.


But don't expect our hardcore resident MSE 'bulls', who seem to be singularly determined to let reality wash right over them, to take any of this on board.

"la la la, everything will be all right..... la la la". Sounds just like what people were saying about house prices last August.