Council tax from gross or net income

MadAboutSales

This is a basic question... but it bothers me!

If council tax is a tax as the name suggests, why doesn't it come out of my gross wages rather than net?

Assuming that housing is an essential need to a human being, why is it not taxed at the same time as national insurance tax and p.a.y.e?

I pay every month £125 of council tax, but that equates to about £160 from my gross pay.

Anyone know if there is a way around this?

HappyMJ

Nope...no way around it....and it's a bit more than £160. The tax rate is 20% and the NI rate is 12% so you would be taking home £108.80 each month. To take home £125 you need to earn £184 a month....assuming your council tax is paid every month as you say. Some people don't have to pay in Feb/March so would need to earn £153 a month before tax.

MadAboutSales

£160 was a rough guess based on what I pay annually in tax, after allowances etc. It is so upsetting to pay compund tax. :mad:

maninthestreet

Where would the money come from to fund the tax revenue loss if this idea was implemented?

somethingcorporate

Tax on duty, vat etc are all from your net pay too.

Kynthia

We pay lots of different taxes after having paid income tax. I particularly hate paying stamp duty as why should we pay for the priviledge of buying a property using income we've already been taxed on and savings where we've paid tax on the interest made. Then should that property increase in value, and it's not you PPR, then you pay tax on the gain!

John_Pierpoint

I particularly resent paying "Taxation by Inflation".
The crooks of Westminster deliberately create money out of thin air and use it to buy their own debts back from the crooks at the banks.
This forces down interest rates to next to nothing and causes inflation.
Officially the aim is inflation of 2% but the reality is nearer 5%.

At least when you are taxed at 20% on your interest or 32% on your earned income you know the score, but Taxation by Inflation at 5% is simply stealing half your already taxed savings in less than 15 years.