Tax deduction %

[DayWalker™]

You have a "tax-free allowance" which is normally around 1800 for which you won't be charged tax at all. but his varies from person to person.
After your tax free allowance, and up to about £2200 you will be charged 10%

Tax free allowance is 5225 for the year 07-08 and the tax brackets have changed they now have chucked the 10% tax frame and only kept the 22% and 40%.

To qualify for a 22% tax charge you need to earn up to £33-35,000 (depending on Medical insurance, travel and subsistance, entertainment provided to your buisness, cars, Credit cards etc etc) so basically anyone who earns over their tax allowance gets taxed at 22%.

Anything over 33-35k is taxed at 40%.

Stan

 

[Colonel]

my m8s alfa 155 hes getting rid of it in 2months when the mot n tax runs out but atm the exhaust box is hanging down and he goes over speed bumps at like 5 mph and speed bumps are what caused all the damage in the first place.

 

[F4LL3N_4NG3L]

Ok don't know if I can ask this but going to anyway lol. Because the government is doing a p!ss poor job with taxes is there anyways of avoiding having to let them cash in on your wages?

Examples I'm looking for are like: Cash in hand might be easier (but meh what do I know or I wouldn't be asking) But also I'd like to know the pro's and con's of cash in hand like will it effect a pension etc

WARNING I'M NOT ASKING ILLEGAL ADVISE! JUST SHORT CUTS. SO NO OFFSHORE BANK ACCOUNT REPLIES!

 

[czeldabolg]

Road Tax, Right in the area i live is a small town/place but the roads are ok but in certain areas there so screwed it's unbelievable surely if the UK pays most of what they earn they have enough to get off there arses?

NHS yes fair call on that one i suppose but i still see some people paying £2000 for braces, and thats no lie.

Pension? They get our money? Give or take some of them fought in the wars so fair call but some do nothing and then they get money, seems unfair IMO.

-edit- thank god no1 said police for this, because the ones down our end are piss poor, we got section 30'd for being in a group? No warning what so ever, so we had to go home, or else face being arrested. What the hell is up with the laws and tax nowadays i really wonder?

 

[Colonel]

yeh i hate people who live off the doll etc they have loads of kids claim as much out of the government as they can and have a husband or w/e who works cash in hand and pays nothing into the system.

yeh fair do's NHS i can appreciate is an expensive system although i had to wait 1 hour to park in hospital car park. i went to hospital before that with my elbows cut open from falling off my bike at 40mph and while they took x rays n stuff while my arms were cut open bleeding they kept sending me into the waiting room ridiculous.

atm where im working due to the fact im 17 and earn ruffly 300 a fortnite im getting taxed like £5 for national insurance but these days trying to earn money cash in hand is too risky specially now due to all these fraud investigators etc.

 

[czeldabolg]

Give or take im only 16 but i dont get how cash in hand is fraud, its the businesses choice, but its also highly stupid that it seems the "goverment" is controlling everything now, these rules really need to crumble at certain parts..

 

[Colonel]

its fraud because everyone is suppose to pay tax by law on their earnings although these rules are alot more leaniant for those that are self employed.

 

[czeldabolg]

-becomes self employed- I employ myself to sit on my ass ^^, i win ^.-

 

[F4LL3N_4NG3L]

Can we stop talking of "fraud" I'm not asking for anything which is ILLEGAL I'm just asking for shortcuts lol Erm To put it simply "loop holes" or "gates".

Wheres Atom when you need him .... *sighs*

 

[chimera]

Yes there are loop holes that people legally use to reduce their amount of taxable income, businesses do it all the time. But you often need an accountant to help you with this, sometimes its's worth it, depends how much per annum you're talking about in gross income

 

[JohnBarny]

If u want ur tax back go on dole at same time LOL just dont get caught

 

[Atomicide]

Can we stop talking of "fraud" I'm not asking for anything which is ILLEGAL I'm just asking for shortcuts lol Erm To put it simply "loop holes" or "gates".

Wheres Atom when you need him .... *sighs*

If you want to start saving money on tax, you have to start filling in your own tax returns, and that can be a real pain in the arse. Certain things like pension schemes, investments, ISA's.

The problem is to really take advantage of some of these loopholes you have to have a large amount of money to do it. You can give a 1 time gift of £10,000 to your "spouse" meaning thats 10k of your money the government cannot tax. I know places where people are paid big bonuses, there have been cases of them being paid in gold bars, and wines etc because you dont pay national insurance.

The big issue is, people like us cannot afford to pull things like these off, and the people that CAN afford to do them are the reason for our ever increasing taxes. Some guy earning £millions can manage to save around £100,000 a for each million byu avoiding taxes, and that money has to be made up elsewhere, and "elsewhere" is people like me and you that cant pull off these stunts.

The amount you could save on your earnings etc weighed up against the cost of what you can succesfully get away with probably isnt worth it im afraid. At least not untill your on a £40k+ salary#

Edit: Ill have a look and see what I can find out. As far as im aware m ost of the loopholes for us are around reducing your gross taxable amount.

 

[F4LL3N_4NG3L]

I know most of the time the rich get to do it and reason I'm asking on a forum is due to the fact I'm poor and can't afford an accountant lol! Well as long as it's legal and I'm saving money even if it is a little...

As for the which is best way Cash In Hand or Normal Pay? By this I mean in short term and long term.

Thx Atom knew you'd give me something useful :P

 

[Colonel]

cash in hand is illegal w/e way you put it short term is gd few days on the weekend long term very risky.

for egsample tho if you were running your own say mechanics garage this is just an egsample i know ur female and that isnt ur career prospect but anyway an easy way to beat the system is by putting 50% of ur customers thru the system getting taxed day in day out but say the other 50% regular trust worthy customers just taking the cash in hand and under your bed for a rainy day. although my dad's m8 is doing this and having a problem becoz now hes still got his garage but isnt classed as working it and now with alot of the old £20 notes and has to try n get it into the system without the inland revenue getting suspicious.

 

[Atomicide]

Cash in hand works for for a few days every so often, as long as it always remains "cash" so basically you get handed the cash, and it lives in your house till you hand it to a shop. However as always there are risks with this, like, if you agree to work cash in hand, you generally dont sign a contract, meaning technically the person could get away with not paying you for working there. Any decent employer will refuse to pay you cash in hand, because they still have to account for the money they pay you.

As an example, you could "attempt" to set up your own business. I know you do modelling, so say your thinking of doing a business like that. You "invest" your wages into stuff you want, and say its for the business (things like computers, camera's, softward for them etc) Your business doesn't have to make any money, and you deem it a "failure" you get to keep all the stuff, (which you can claim VAT on) and the money you "invested" in buying things you wanted wasn't taxed.

 

[F4LL3N_4NG3L]

Thanks this as given me a better insight of the subject.