Tax threshold

I like your post Galley, well researched, however it has left me with a tear in my eye wondering how the poor mite will manage

 

From Memory, the highest marginal rate of tax was 98%. This was made up of income tax where the highest marginal rate was 83%. On top of this was something called unearned income, which was income from dividends etc. The maximum additional rate for this was 15%. 83+15=98.

I agree with the point that the highest earners ought to pay more, however, it seems that whatever loopholes HMRC close, tax accountants find new ones.

 

Which takes us back to the tax code being too big and bulky, and the tax "cheats" being advised by those who wrote the rules. You could cut probably 99% of the tax code out and remove most of the loopholes that they use at the same time. The PTB won't do that though, as they and their backers use the loopholes themselves and those on the HMRC side can have a lucrative career to top up their pension pot.

 

Most tax advisors are former HMRC tax officers, trained by the state to "rip off" (I can't think of a better phrase) the state.

 

Btw, I stand corrected during the 2nd world war the highest marginal income tax rate was 99.5%.

 

Except that's just it, they are worth that much to shareholders because they share price / dividends by an even greater amount. That's just free market economics. How much of that they should pay in tax is a completely different matter.

 

Incorrect. Very little recruitment into professional services firms from HMRC. They recruit mainly from universities.

No one is trained to "rip off" the state either.

 

There's the Office for Tax Simplification that are looking at trying to reduce the level of tax legislation. There has also been a significant tightening up of so called "loop holes". Sweeping legislation has been brought into capture anything that could be considered tax avoidance. Only legitimate tax planning remains - these are schemes introduced by governments that seek to incentivise the right type of practises - employee ownership of businesses, investing in R&D etc.

Unfortunately, that doesn't stop the ill-informed making sweeping generalisations about the tax system.

 

With respect Paul She indeed paid £130m in per

Yes she paid £130 m Paul. And if she has a tax liability as you say. She needs to pay it. I am certainly not decrying the amount she paid. But if as a society we allow such people to prosper on the backs of others. To the extent where some of her customers are the very people that provide her wealth getting into debt trying to beat the bookies. The poorest in society living in austerity. In the 5th richest nation in the world I believe. Why shouldn’t in this time of crisis shouldn’t they pay more. It’ll be the lower paid etc picking up the tab yet again when this is all over. The wealthy get richer and the poor get poorer.
I’ve said so many times mate to others . Read the ragged trousered philanthropist if not already done so.
I am aware of the pitfalls to a degree. But governed properly. By that I mean close the loopholes to prevent tax evasion/avoidance. If it is naive. Then those tax rates that were introduced during the 2nd world war 99.8% and reduced over the years would it seem have been a waste of time. But as proved helped get the economy back on track. It also. as I’ve said worked in America. For fear of anarchy .
There will be a kick back from all this. When the front line workers will get their rewards. due to public demand.
Stay safe mate

 

I am quite aware of how they get their rewards. I’m also quite aware they get significant sums. If they fail and get paid off.
My point is I was trying to show That not only footballers who were getting all the flack. ( also paye) But lots of others in society reaping such amounts. I could have added a lot more. Maybe I could have made that a little clearer.

 

Every little bit helps mate. I deliberately stuck to tax thresholds on paye. because I know a little bit on taxes within paye. Pension tax relief. Marriage allowance tax relief. (Might start a thread on that one mate if it’s never been covered. Lots of people missing out. ) Private use of company vehicles and so on.
But I wouldn’t even venture into business tax cooperation tax etc. I literally know nothing on the subject. that would have to be a different thread mate that I would not more than likely get involved in.