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The_Lizards_Jumpers Posted on 3/5 12:23
The 40% tax band
Seems to be more and more people daily boasting about how they have to pay 40% tax in a sort of "I'm significantly richhherr that yaaaaawwwww" type of way.

trodbitch Posted on 3/5 12:23
re: The 40% tax band
Who (apart from you ) has mentioned it today?

morning_roary Posted on 3/5 12:24
re: The 40% tax band
Who is boasting? if fookin pig sick of paying a fortune in tax for loafers like you

trodbitch Posted on 3/5 12:26
re: The 40% tax band
Well that's that question answered then. So we should be grateful for you paying taxt for us then? No thanks.

The_Lizards_Jumpers Posted on 3/5 12:26
re: The 40% tax band
"Loafers like you"

I've been working for about 8 years since leaving university chum.

Tom_Fun Posted on 3/5 12:26
re: The 40% tax band
Didn't the poster who started a thread on it the other day also mention that he was nowhere near that tax bracket?

morning_roary Posted on 3/5 12:27
re: The 40% tax band
Well shut the fook up whining them chum

The_Lizards_Jumpers Posted on 3/5 12:28
re: The 40% tax band
Whining or pointing out that people seem to think that it's some sort of passport to greatness?

trodbitch Posted on 3/5 12:28
re: The 40% tax band
I'm richer than all of you anyway.

morning_roary Posted on 3/5 12:29
re: The 40% tax band
um really

Boro_Lee88 Posted on 3/5 12:29
re: The 40% tax band
I agree Lizard.

tunstall Posted on 3/5 12:30
re: The 40% tax band
i get all my tax back

littlejimmy Posted on 3/5 12:30
re: The 40% tax band
Is bragging about paying no tax worse?

JLinardi Posted on 3/5 12:31
re: The 40% tax band
Is it really true that if i was to earn £100,000 a year then awld brownie would take £40,000 off me?

That is absolute madness. So if you earn say £1m per year you wont actually bee a millionaire for a couple of years?

No wonder they all get dodgy accountants.

The_Lizards_Jumpers Posted on 3/5 12:32
re: The 40% tax band
Possibly Jimmy, depends on whether you're doing it because you have no income or because you have a clever accountant.

The_Lizards_Jumpers Posted on 3/5 12:33
re: The 40% tax band
No, Youre only taxed 40% on any income over £33,000 you're income below this is taxed at a lower rate.

However dont forget your NI as well, so in your example you wouldnt even pick up £60,000.

--- Post edited by The_Lizards_Jumpers on 3/5 12:34 ---

boksic Posted on 3/5 12:33
re: The 40% tax band
LittleJimmy is domiciled in the tax free environs of Duabi.

The_Lizards_Jumpers Posted on 3/5 12:34
re: The 40% tax band
I know, but I was talking in more generic terms.

--- Post edited by The_Lizards_Jumpers on 3/5 12:36 ---

littlejimmy Posted on 3/5 12:35
re: The 40% tax band
Actually, Linardi, you only pay 40% on earnings over the limit (30k or something), and you only start paying the 22% on earnings over 4k or something like that.

Liz, I meant paying no tax by virtue of working abroad in a tax-free environment. The only problem is, I have to stay abroad for at least another year to avoid getting my back doors booted in by the tax man.

And then, I have to pay for schools and health insurance and other things that taxes pay for. They do have tax, they just call it fees here.

And I'm in Doha now. I've had enough of Dubai. Considering a move to Moscow.

--- Post edited by littlejimmy on 3/5 12:37 ---

BigJobbie Posted on 3/5 12:37
re: The 40% tax band
Not quite,JLin. Upto £36K ( I think that is the cut off) you pay the normal rate. Anything above that is taxed at 40%.
This includes any interest made on savings as well - the cnuts !

littlejimmy Posted on 3/5 12:38
re: The 40% tax band
I saw that before you edited it, you swine.

morning_roary Posted on 3/5 12:39
re: The 40% tax band
Yes its 36k what a freakin discrace.
should be more like 50k

parmo_army Posted on 3/5 12:39
re: The 40% tax band
That's correct Tom, I did indeed say i was nowhere near it, and still, a couple of days on, i'm still nowhere nearer it!!

I don't think TLJ was having a pop at me, well he better not have been anyway, he knows i'm a scruffy get

Shairy_Hithole Posted on 3/5 12:40
re: The 40% tax band
you pay 40% on £34,601 and above

Link: Tax

The_Lizards_Jumpers Posted on 3/5 12:41
re: The 40% tax band
No Parmo more the people that a thread like yours brings out of the woodwork. The "I pay £xxxxx tax, arent I great" type.

trodbitch Posted on 3/5 12:42
re: The 40% tax band
Oh what it must be like to worry about where your slice of £30,000+ goes. Once you reach the dizzy heights of my wealth, it's not so much a burden.

The_Lizards_Jumpers Posted on 3/5 12:43
re: The 40% tax band
Chuck another pile of £20's on the fire Trod, I'm getting cold here.

Questions_Questions Posted on 3/5 12:43
re: The 40% tax band
I'd be happy to pay it if it meant i was getting over £36k a year.

Of course if i ever get that far, i'll think its a disgrace.

Archie_Stanton1 Posted on 3/5 12:46
re: The 40% tax band
If you are paying 40% you need to sort yourself a better accountant, as there is really no need to be paying that. There are plenty of legitimate ways around it.

Buddy Posted on 3/5 12:46
re: The 40% tax band
Take home pay for someone on an annual salary of £100,000 and standard personal allowances would be £64599.24. Or £5383.27 per month.

I would be very surprised, however, if anyone on that salary had standard personal allowances.

littlejimmy Posted on 3/5 12:46
re: The 40% tax band
I wouldn't get out of bed for 36k. Unless I needed a wee.

The_Lizards_Jumpers Posted on 3/5 12:47
re: The 40% tax band
I dont know about that Archie, it depends if you earn it as a salary or can form limited companies etc.

UndercoverElephant Posted on 3/5 12:47
re: The 40% tax band
That global rich list thing that was posted a while back was the shocker. My tax bill last year would have been the top 1% of earners.

Link: GRL

littlejimmy Posted on 3/5 12:51
re: The 40% tax band
That's quite shocking, really. Even if you only earned 500 quid a year, you would be in the top 50% of the world's earners.

billybalfour Posted on 3/5 12:51
re: The 40% tax band
You wouldnt get out of a bed in doha for that money littlejimmy, but round the doors for family men, thats good money

littlejimmy Posted on 3/5 12:53
re: The 40% tax band
I was being facetious.

Archie_Stanton1 Posted on 3/5 12:54
re: The 40% tax band
Lizards -you`re right. You need to form a limited company, draw your salary as a minuimum wage, and take the rest in dividend.

If you are permanent staff you are knackered, other than shovelling it into your pension. But how many permanent positions pay that kind of screw? Not that money i wouldn`t have thought.

parmo_army Posted on 3/5 12:56
re: The 40% tax band
I did type it with a wooden spoon in me hand

Fearless_Fish Posted on 3/5 12:57
re: The 40% tax band
I dream of getting past the £15K mark

Fat lot of good my degree has done me!

The_Lizards_Jumpers Posted on 3/5 12:58
re: The 40% tax band
"But how many permanent positions pay that kind of screw? Not that money i wouldn`t have thought"


Loads, you'd be suprised.

Buddy Posted on 3/5 12:58
re: The 40% tax band
Didn't they close the dividend loophole a couple of years ago, after first encouraging everyone to do it that way?

billybalfour Posted on 3/5 13:00
re: The 40% tax band
I was'nt being judgemental jimmy, had this conversation on club week back or so,, some guy bragging he,s on super dosh on the rigs, when you worked it out, he was away from his family all the time and stuck on standby waiting by his phone, no life whatsoever. like a prisoner on a k a month more, but he had a nice car he reckons,,,,

piggy_nichol Posted on 3/5 13:01
re: The 40% tax band
10% in Kazakhstan which I'm happy to pay.

Especially as my office overlooks the Tax Police courtyard where they march up and down. I wouldnt want to upset that lot.

number9point5 Posted on 3/5 13:01
re: The 40% tax band
40% is for whimps. Before i gave up IT contracting good gorbels gorden was trying to stiff me for 51% under IR35.

Since I started day trading on the fx markets I now pay 0% which is rather nice thankyou very much.

--- Post edited by number9point5 on 3/5 13:02 ---

TimmyMallet Posted on 3/5 13:07
re: The 40% tax band
Buddy, they certainly closed the umbrella company dividend method recently, which I was one of a number of 'directors' under.

I've just had to set up my own company, so I pay myself minimum wage and take the rest in dividends.

Expecting my first corporation tax bill in June 08

FunkyPotatoe Posted on 3/5 13:09
re: The 40% tax band
Hello People,

Really interesting thread.

Would anyone be able to help me to build a spreadsheet that would accurtately work out what tax and NI I should be paying and then allow me to check my earning are as they should be?

Would need to know the values at which tax is payable and also the current rate of NI?

Thanks Mr Potatoe

The_Commisar Posted on 3/5 13:10
re: The 40% tax band
What archie and timmy said
Pay yourself minimum wage and take the rest out as dividends.
On a £50k wage your looking at paying about 10% at the end of the day.
Which is good.

TimmyMallet Posted on 3/5 13:15
re: The 40% tax band
10% Commi?

How the hell would I manage that?

*taps side of nose with finger*

onthemap Posted on 3/5 13:16
re: The 40% tax band
Is this thread meant to berate those who brag about earning enough to pay 40% tax, or a means of complaining that you yourself would like the opportunity?

The_Lizards_Jumpers Posted on 3/5 13:17
re: The 40% tax band
It was meant to be the former, however it has veered off into a discussion about how to avoid paying tax.

number9point5 Posted on 3/5 13:19
re: The 40% tax band
By paying Dividends from a ltd of which you are a director you will come under IR35 which means that you will pay company NI as well as your own. This reg applies if you gain all of your work from a single source, say a 6mth contract and this contract is your companies sole source of income.

YOU have been WARNED.

The_Commisar Posted on 3/5 13:20
re: The 40% tax band
Yes Timmy, perhaps with the aid <taps side of nose as well> Chipchase and Manners, accounts of the parish of Linthorpe.
9.5, so you therefore do some work for other companies as well .
D'oh!

--- Post edited by The_Commisar on 3/5 13:21 ---

onthemap Posted on 3/5 13:25
re: The 40% tax band
I agree Lizard, if you are fortunate enough to earn in the upper tax bracket then boasting about it will stick in some throats. I've been guilty of it in the past and quite rightly have been brought down to earth over it.
Im afraid that the materialistic 80s drummed it into you that it was a good thing to chase the dollar and then bang the drum about it.

TimmyMallet Posted on 3/5 13:27
re: The 40% tax band
Thanks Commi. My accountants (who used to act as the provider of the umbrella company) are based in Bristol. They seem switched on. Moreso than a number of agencies turned accountants that I've heard. Treasureguard Ltd, if your interested.

I do only work for 1 company so I guess I will be paying Company NI as well. Will have to ask about that.

--- Post edited by TimmyMallet on 3/5 13:27 ---

Buddy Posted on 3/5 13:30
re: The 40% tax band
I've just done a spreadsheet and the net figure for £100,000 is slightly different from that which I quoted above!

Buddy Posted on 3/5 13:34
re: The 40% tax band
Potatoe - this spreadsheet works only if you are on standard allowances, with no pension contributions or other deductions/benefits affecting your tax liability. Right click below and select "Save As" to download it.

Link: Spreadsheet

number9point5 Posted on 3/5 13:35
re: The 40% tax band
Not that easy Commisar. You have to prove to them that you are truly not just a one man band trying to avoid NI on the bulk of your income.

It took a mate of mine 4yrs to convince them that he had more than one client. They apply a rule that if most of your income comes from a single source then IR35 applies. It's up to you to prove otherwise.

Buddy Posted on 3/5 13:36
re: The 40% tax band
I should add that you just need to fill in one of the yellow sections and the rest will sort itself out.

The_Commisar Posted on 3/5 13:36
re: The 40% tax band
Timmy
I can recommend a firm in Sunderland <spit>
I've linked below.
They are charging me half what Chipchase did.
If you contact them ask for Peter Fisher .
I really REALLY rate them

Link: Linkus winkus

The_Commisar Posted on 3/5 13:38
re: The 40% tax band
9.5, in 4 years of contracting I have never ever met anyone who has been nailed by IR35. I have been told by my accopunts of oner person they handled who had been hit.
He domestrated he was an expert in a certain area, had multiple clients and they backed down.

onthemap Posted on 3/5 13:42
re: The 40% tax band
Surely the answer to this is to just go Ltd Co. That's what they're for - im missing something.

Stepper_T Posted on 3/5 13:44
re: The 40% tax band
I drive a Hyundai.

number9point5 Posted on 3/5 13:47
re: The 40% tax band
Commisar. before i knoced it on the head I had been contracting for 15yrs. I then went thru a very convoluted scheme to avoid IR35, which worked, but in the end I had had enough of IT and chasing a new job every 3, 6, or 12 months, that said my last contract I was there for 4yrs, as I wanted a change.

Now trade at home, pay 0% tax, no commuting, no office politics and zero stress.

You carry on running around the hamster wheel :¬)

onthemap Posted on 3/5 13:49
re: The 40% tax band
and the reason you can't go ltd is...?

The_Commisar Posted on 3/5 14:04
re: The 40% tax band
9.5, it will be a great pleasure to get off the wheel, yes fully agree about the 3 6 12mth thing, until business gets going in the north east though, I can see an alternative, actually thats not true, I have an iron in the fire on regulo 3 as we speak, but it will take a while to mature.

Archie_Stanton1 Posted on 3/5 14:09
re: The 40% tax band
They were debating the new tax laws to replace IR35 in the commons on Monday (see Hansard). Of 1,500 investigations carried out by the IR, only in 4 (yes four)cases did they find that the person was outside of IR35, and therefore not paying enough tax.

I`ve been contracting with Brookson for 9 years now and had no problems.

Chutney Posted on 3/5 14:24
re: The 40% tax band
But Lizards, isn't such bravado also not entirely dissimilar to going on about how much money you spend on a pair of jeans?