50p tax....

[NozSpark]

I'm not getting into wether it's a good or bad thing, but I'm more commenting on something I heard on the news.

The MD of Pimlico plumbers implied that the 50p tax rate was stopping his company from taking on upto 50 new employees

I thought that this tax rate was a personal income tax, not a "business" tax?

 

[Sharpend]

Read between the lines.

What he meant to say. At my prices all my clients will earn an income that will fall foul to the 50p tax rule therefore as they and potentially new clients will be paying more tax then they won't pay my prices so I can't expand.

 

[Apache]

I thought that this tax rate was a personal income tax, not a "business" tax?

You are correct, but you would hope that if your company took on an extra 50 men you'd make more money (or why employ them!). The 50% tax rate kicks in on earnings over

 

[ProDave]

TBH my simplistic view would be to tax everyone at a flat rate, include NI and income tax and scrap thresholds, scrap higher rates. The money saved in administration would be immense. The higher earners would pay a lot more tax than the poor simply because they earn more. It would drive businesses to be successful and make money. The tax system as it is is overly bureaucratic and complicated and stifles growth. People making a lot of money move themselves or their business abroad and don't contribute to our tax system - we ought to encourage them to stay. I'm thinking 25% across the board for everyone.

That sounds like a Tory plan.

So lets say you stick at the present 20p rate. The poor would hate it, because they would pay tax on ALL their earnings (no threshold before you start paying) and the rich would love it because they would pay a lot less than their present 40p or 50p rate.

 

[Cirrus]

Tax? What's that?? My accountant works damn hard for me lol!

 

[batty]

Well apparently government are going to get hot on electricians not paying tax.

HM Revenue & Customs: Electricians' Tax Safe Plan campaign

 

[steptoe]

what about the people that pretend to be electricians but are in actual fact horse riding cable pullers?

 

[batty]

Well if they only take cash which they probably do there time is up apparently.

:|

 

[androidlee]

is there no such hmrc thing for plumbers,brickies etc?

if not we are portrayed as a bad bumch lol

 

[Cirrus]

It's nothing to worry about, just HMRC using 'dirty tricks' to try and panic everyone into perhaps disclosing something they otherwise forgot to mention. They simply don't have the resources to chase people at the moment so don't worry about it. Mine is a Ltd company, the company pays corp tax on profits and the accountants advise the directors on the best way to limit tax liability - all in the best, most legal way of course.

 

[SteveT]

is there no such hmrc thing for plumbers,brickies etc?if not we are portrayed as a bad bumch lol

HMRC have just done two years on plumbers, we knew we were next! this has been expected for some time, we were all pre-warned so we should all have made sure we are water-tight(scues' the pun!).......hav'nt we???

 

[Ash]

Whoever owns Pimlico, his income will be based on what the business has earnt after everything has been deducted. So the 50p tax will mean he won't be able to afford that new Porch if he wants to employ more

 

[Evans Electric]

Would that be a double glazed Porche by any chance ?? :C

 

[Robojin]

I can't imagine Charlie of Pimlico pays the 50p rate, most likely he's remunerated via his director's dividend so that will be at 10% then