Question Time

urban genie said:
Yeah but he wasn't going on about that he was waffling about not being in the top 5% and that labour were lying saying someone on 80 grand was.

That is why people are taking the piss, that and his lack of knowledge on wage levels and what profesions earn.

The bloke sounded a right knob with no clue
Click to expand...
Erm. You only have to read a few posts on here to see that is precisely what they were criticising him for.
 
That guy was barking mad. He genuinely thought earning 80k a year is an average income (he said he's not even in the top 50%)?

This is what happens when so much nonsense gets spouted about Labour's tax plans. Yes those on 80k a year will have to pay more tax as a top 5% earner but they're hardly lumped in with the billionaires. A person earning 80k will pay an extra 96p a week! That will easily be covered by free broadband, free tuition and all the over public funding promised by Labour.

Some people really need some perspective.
 
Kazzydeyna said:
On LBC earlier there was someone claiming to be a GP complaining that , as he earned 90k a year he would be "getting taxed for working in the NHS".

He also complained that the NHS was underfunded.

Presumably, like the tories, he expects the little people to pay more for less. The prick.

As for that utter fuckwit on QT tonight crying that he was being asked to pay a couple of quid a week extra in order to begin putting right the wrongs of the last few years of outright neglect inflicted on the british people by the fucking tory cunts he was not only thick as cheese he was also a selfish twat.

But all of the above are not nearly as shameful, and downright stupid, as working class, average wage or less folk who actually argue in favour of less tax on the most fortunate and affluent in society at their own and their family's expense.

One final thing, you need only check the brexit thread(s) to see I am the most brexit-y of brexiteers but this tory party, their arrogance, their lies, their lickspittles in the BBC, their useful idiots amongst the working class and their selfish twats in the affluent middle classes have finally convinced me that Brexit is NOT the most important issue in the country today. Getting rid of them IS. And if that costs me brexit but takes a few thousand people out of foodbanks by charging GPs a tenner a week extra in tax I'll be quite happy with that.

Nothing in life enrages me more that 20k a year strugglers actually arguing against taxing millionaires a tiny bit more and in favour of austerity.
Click to expand...

Good post bud and I agree with all of it, I was a remainer, now I am a Brexiter, I voted Tory last election and now I am voting for Jamie Vardys dad to give him 4 years of running the country instead of just running his mouth off.
 
jay_mcfc said:
That guy was barking mad. He genuinely thought earning 80k a year is an average income (he said he's not even in the top 50%)?

This is what happens when so much nonsense gets spouted about Labour's tax plans. Yes those on 80k a year will have to pay more tax as a top 5% earner but they're hardly lumped in with the billionaires. A person earning 80k will pay an extra 96p a week! That will easily be covered by free broadband, free tuition and all the over public funding promised by Labour.

Some people really need some perspective.
Click to expand...

I earn circa 25K a year and I'll be paying more tax under a Labour Government.

There's some perspective for you.
 
jay_mcfc said:
Why?
Click to expand...

I'll even give you figures...

Currently on 20K profit I'll pay £3800 in CT. If I pay myself 25K I'll pay £787 in income tax. A total of £4587.

Under Labour on 20K profit I'll pay £4200 in CT. If I pay myself 25K I'll pay £2500 in income tax. A total of £6700.

Note - I've edited this as of course, I wouldn't be able t pay myself 12.5K in dividends if I'd only made a profit of 10K. I originally used the 10K figure as it was easier to do the maths :)
 
Last edited:
Cheesy said:
I'll even give you figures...

Currently on 10K profit I'll pay £1900 in CT. If I pay myself 25K I'll pay £825 in income tax. A total of £2725.

Under Labour on 10K profit I'll pay £2100 in CT. If I pay myself 25K I'll pay £2500 in income tax. A total of £4600.
Click to expand...

So what happens if you pay yourself just below the caps like every Amazon seller currently does who has a limited company? The rest in dividends.
 
Cheesy said:
I'll even give you figures...

Currently on 10K profit I'll pay £1900 in CT. If I pay myself 25K I'll pay £825 in income tax. A total of £2725.

Under Labour on 10K profit I'll pay £2100 in CT. If I pay myself 25K I'll pay £2500 in income tax. A total of £4600.
Click to expand...
The Labour tax proposals really are a killer for small businesses like yours.
 
Scottyboi said:
So what happens if you pay yourself just below the caps like every Amazon seller currently does who has a limited company? The rest in dividends.
Click to expand...

That example I gave is me paying myself 12.5K via PAYE and taking the rest out in dividends. Labour are proposing removing the preferential income tax rate on dividends.
 
Scottyboi said:
So what happens if you pay yourself just below the caps like every Amazon seller currently does who has a limited company? The rest in dividends.
Click to expand...
There's a 7.5% tax on dividends, apart from an ever-decreasing allowance which is tax-free (currently £2000). Either way the dividends are then declared as income and taxed accordingly. So as a guide a single person through a ltd company is currently taxed 19% (CT) + 7.5% (DT). If they pay themselves the minimum salary they can get away with paying no NI. I reckon the difference between a ltd company and an employee isn't much. If they take enough dividends to make their income above the higher rate tax threshold then they will have to pay some additional tax. I think that's right.
 
TheRemainsOfTheDave said:
There's a 7.5% tax on dividends, apart from an ever-decreasing allowance which is tax-free (currently £2000). Either way the dividends are then declared as income and taxed accordingly. So as a guide a single person through a ltd company is currently taxed 19% (CT) + 7.5% (DT). If they pay themselves the minimum salary they can get away with paying no NI. I reckon the difference between a ltd company and an employee isn't much. If they take enough dividends to make their income above the higher rate tax threshold then they will have to pay some additional tax. I think that's right.
Click to expand...

There's currently a 7.5% tax on dividends (if you're a lower tax rate payer), however Labour are proposing getting rid of this and taxing all dividends at the standard rate of income tax.
 
TheRemainsOfTheDave said:
There's a 7.5% tax on dividends, apart from an ever-decreasing allowance which is tax-free (currently £2000). Either way the dividends are then declared as income and taxed accordingly. So as a guide a single person through a ltd company is currently taxed 19% (CT) + 7.5% (DT). If they pay themselves the minimum salary they can get away with paying no NI. I reckon the difference between a ltd company and an employee isn't much. If they take enough dividends to make their income above the higher rate tax threshold then they will have to pay some additional tax. I think that's right.
Click to expand...

Yep this is what I was getting at, no idea why you would pay yourself 12.5k when you can go lower and reduce your NI contributions as a result.
 
Cheesy said:
That example I gave is me paying myself 12.5K via PAYE and taking the rest out in dividends. Labour are proposing removing the preferential income tax rate on dividends.
Click to expand...
12.5k or 25k?

You are Boris Johnson and I claim my £5 (less tax).


£25k salary today with standard tax code 1250L should mean income tax £2500 and NI £1964, total tax £4464.

£12.5k income tax zero, NI £464.

Not an accountant but can use tax calculators.
 
TheBlueDune said:
12.5k or 25k?

You are Boris Johnson and I claim my £5 (less tax).


£25k salary today with standard tax code 1250L should mean income tax £2500 and NI £1964, total tax £4464.

£12.5k income tax zero, NI £464.

Not an accountant but can use tax calculators.
Click to expand...

I don't pay myself a £25K salary. I pay myself a £12.5K salary and circa the same in dividends.
 
jonmcity said:
Good its called stopping tax avoidance.
Click to expand...
Are you a Labour supporter by any chance? With that level of ignorance you must be.

As I said earlier, somebody decides to set up a limited company to offer services. They take the risk of having no certain employment but take it on anyway and make a profit in their financial year (Profit is money in less money out running the business). The government takes 19% of that profit straight away. So there's your income tax. No £12500 buffer zone that you get when working in employment, though, so the government gets £2375 extra cash. The business owner takes minimum salary to avoid any tax or NI, saving themselves about £3000 based on an avg income. They're now £625 up. They then take £22000 in dividends (£20k is taxed at 7.5%) so they pay the taxman an extra £1500. They're £875 down, now.

Where's the avoidance?
 
You must log in or register to reply here.
Unread Posts

Don't have an account? Register now and see fewer ads!

SIGN UP
Back
Top