Do you know your tax burden for the last tax year?

danothy

Last tax year 29.2% of my income went to the government via various taxes. I'm not exactly sure how I feel about that. Did I get off lightly?

BobQ

Was that with or without an accountant's tax avoidance advice?

Generali

BobQ wrote: »

Was that with or without an accountant's tax avoidance advice?

You mean following the rules on taxation that the Government puts in place regarding things like ISAs and pensions.

I manage to save for old age without the advice of an accountant. If you struggle to do the same perhaps you should visit the investment board.

danothy

BobQ wrote: »

Was that with or without an accountant's tax avoidance advice?

I don't make use of an accountant. Are you assuming I have avoided paying some tax?

chucknorris

danothy wrote: »

I don't make use of an accountant. Are you assuming I have avoided paying some tax?

Nearly all of us avoid tax in some way, where you draw the line between what is morally acceptable or not, is very subjective. I avoid tax in the usual ways, ISA's, pensions, charity donations and I also bed and breakfast my shares.

danothy

chucknorris wrote: »

Nearly all of us avoid tax in some way.

Assuming I don't avoid tax, am I paying the 'proper' amount then?

chucknorris

danothy wrote: »

Assuming I don't avoid tax, am I paying the 'proper' amount then?

I would say no, you are paying too much tax, because you haven't taken the obvious steps to minimise your tax payments. It is subjective though, my definition of 'proper amount' would be to pay all legally due tax, but after making use of legal tax avoidance measures. I probably (I'm not sure, because I don't know what are the loopholes are) haven't got a problem with someone using legal avoidance methods, as far as I am concerned it is the Gov's job to close off all avenues of avoidance that they are not happy with.

Thrugelmir

danothy wrote: »

Assuming I don't avoid tax, am I paying the 'proper' amount then?

Are you a saver or a spender?

thequant

I've not done my final accounts up yet, although did a summary before the end of the last tax year so I could extract a final dividend.


The final accounts await my accountant using his magic pen in terms of allowable expenses. However since I am taxed at the corporation tax rate, my max liability is 20%.


However after tax efficient wages for me and my spouse and expenses I will be disappointed if the final figure comes above 10%


If anyone is paying over 20% then you are paying too much!

danothy

Thrugelmir wrote: »

Are you a saver or a spender?

Yes, I am.

ukcarper

thequant wrote: »

I've not done my final accounts up yet, although did a summary before the end of the last tax year so I could extract a final dividend.


The final accounts await my accountant using his magic pen in terms of allowable expenses. However since I am taxed at the corporation tax rate, my max liability is 20%.


However after tax efficient wages for me and my spouse and expenses I will be disappointed if the final figure comes above 10%


If anyone is paying over 20% then you are paying too much!

Someone earning £26k on PAYE will lose 20% on income tax and NI.