What cuts are you prepared to personally suffer to repay the deficit?

GSXRCarlos

why is the public sector treated better than the private sector.

i work 8-12 hour days, had pay cuts, no bonuses, likely to work to 68 years old and pay for my own pension. Why should i contribute directly to cuts when public sector workers generally work less hours, have more flexitime, work less of their life and retire to a decent pension????

i'm moving back to my mum and dad's!!!!!

GSXRCarlos

lazer wrote: »

I'm prepared to sacrifice my hard earned money payig more VAT

VAT is the only way to raise more taxes that will affect everyone without causing hardship for the poorest in society, as essentail goods are NIL VAT.

I'd be happy for it to be increased to 30%

This is much preferable to increasing taxes on the working to support the non working

lazer, i'd be inclined to agree, not by 30% though!!!!

chewmylegoff

silvercar wrote: »

At that tax level it won't be all taxable income, it will be refunds of legitimate expenses, dividends, bonuses etc,

refunds of expenses are not take home pay as you have already paid them. would be a bit odd to say "i made £7,500 this month" when £5000 of it was a refund from the business for expenses you had already paid on its behalf.

bonuses are taxable income (taxable as any normal salary payment is), so 41% to a higher rate tax payer, and 12.8% employers NI for the business to pay as well.

dividends are taxable income, taxed at 25% for higher rate tax payers, 0% for basic rate tax payers - but if they come from his own company then will have already paid corporation tax as dividends can only be paid out of the retained profits of a company i.e. if the company never makes a profit because it has "legitimate expenses" which always exceed its income, it cannot pay a dividend, even if it has money in its bank account.

bendix

GSXRCarlos wrote: »

why is the public sector treated better than the private sector.

i work 8-12 hour days, had pay cuts, no bonuses, likely to work to 68 years old and pay for my own pension. Why should i contribute directly to cuts when public sector workers generally work less hours, have more flexitime, work less of their life and retire to a decent pension????

i'm moving back to my mum and dad's!!!!!

Working in the public sector is the employment equivalent of living with mum and dad, anyway.

chewmylegoff

Kronkston wrote: »

I think you should be cut!
"by the time I reach my grade maximum in 5 years time." you mean you get get paid more just for turning up?

civil service is a bit like that - you turn up every day and work your guts out, the person next to you has 3 months off sick a year and is an hour late for work every day, and you both get the same automated payrise at the end of the year. it's a product of the influence of the unions, who hate any sort of progression linked to performance because it means their dribbling members stay at the bottom of the grade forever.

silvercar

chewmylegoff wrote: »

refunds of expenses are not take home pay as you have already paid them. would be a bit odd to say "i made £7,500 this month" when £5000 of it was a refund from the business for expenses you had already paid on its behalf.

bonuses are taxable income (taxable as any normal salary payment is), so 41% to a higher rate tax payer, and 12.8% employers NI for the business to pay as well.

dividends are taxable income, taxed at 25% for higher rate tax payers, 0% for basic rate tax payers - but if they come from his own company then will have already paid corporation tax as dividends can only be paid out of the retained profits of a company i.e. if the company never makes a profit because it has "legitimate expenses" which always exceed its income, it cannot pay a dividend, even if it has money in its bank account.

You need to see an accountant.;)

Under revenue rules you can claim 40p a mile as an expense for business mileage up to a limit. It probably doesn't cost anything like that on a car that you would have anyway.

Similarly if you work from home you can put a percentage of your gas and electric bill as expenses.

Loads of rules like that, plus rules that allow you to take profits out of the company in a variety of ways.

chewmylegoff

silvercar wrote: »

You need to see an accountant.;)

Under revenue rules you can claim 40p a mile as an expense for business mileage up to a limit. It probably doesn't cost anything like that on a car that you would have anyway.

Similarly if you work from home you can put a percentage of your gas and electric bill as expenses.

Loads of rules like that, plus rules that allow you to take profits out of the company in a variety of ways.

thanks. i am an accountant.

you can tinker around the edges like that, you might be what £1,000 better off a year after you had finished p!ssing around, and then only if you've got a big house and high mileage. claiming mileage isn't going to reduce your annual tax bill to £10,000 when you are receiving £7,500 after tax every month. even if it did you'd have paid some much out in petrol that it would be disingenous to say "i only pay £10kpa in tax" without mentioning the thousands of pounds in duty and VAT that you were paying as a consequence of your business activities.

as for "ways to extract profits", unless there is some magical way which only conrad and his accountant know about to extract a regular income at an effective tax rate of 7% of profits after business expenses, i'm not really sure what you're talking about.

silvercar

chewmylegoff wrote: »

thanks. i am an accountant.

you can tinker around the edges like that, you might be what £1,000 better off a year after you had finished p!ssing around, and then only if you've got a big house and high mileage. claiming mileage isn't going to reduce your annual tax bill to £10,000 when you are receiving £7,500 after tax every month. even if it did you'd have paid some much out in petrol that it would be disingenous to say "i only pay £10kpa in tax" without mentioning the thousands of pounds in duty and VAT that you were paying as a consequence of your business activities.

as for "ways to extract profits", unless there is some magical way which only conrad and his accountant know about to extract a regular income at an effective tax rate of 7% of profits after business expenses, i'm not really sure what you're talking about.

All I know is that the self employed with high income and accountants seem to keep more of their income. I accept that this is because they have a greater risk and their work is more volatile and haven't got a problem with it., but it happens.

Whether it is connected to trusts or pensions or what I don't know, but I do know it happens.

chewmylegoff

silvercar wrote: »

All I know is that the self employed with high income and accountants seem to keep more of their income. I accept that this is because they have a greater risk and their work is more volatile and haven't got a problem with it., but it happens.

Whether it is connected to trusts or pensions or what I don't know, but I do know it happens.

you're right, they do, but not to the extent that they pay an effective rate of tax of 7%.

Kenny4315

chucky wrote: »

i'd cut the massive defence budget - it's unnecessary

I think that's a fair point. Especially a nuclear program. I can't see the point. If anyone nukes the UK america will nuke them anyway, so why not just be canny and let them pay for bill. The main terrorist threats now can't be reasoned with anyway so it's no real detterrent anyway.