how to reduce income tax

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chinaloong

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Different strategies for reducing income tax list below -
1. Deferring Income Tax.
2. Tax Schemes.
3. Pre-Payment of Interest.
4. Medical Expenses
 
9. Give some to charity, e.g. The Sarah Brown Foundation for Distressed Gentlefolk
 
Use a good accountant. Failing that yes you could take over the country.
 
TheBramble said:
Apparently doesn't stop them coming after you.
Click to expand...

Then I'll want a coffin just built for one with a large No Entry sign on it and very well nailed down.

Or if they really want to follow me, then I'll go for cremation.
 
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I saw an article a while back that suggested we're close to 70% tax payers in the UK if on the 40% tax rate. By the time you add on N.I., vat, the extra govt fuel charges (+ the vat), car tax, flight duties, community charge...probably not far off
 
Black Swan said:
I saw an article a while back that suggested we're close to 70% tax payers in the UK if on the 40% tax rate. By the time you add on N.I., vat, the extra govt fuel charges (+ the vat), car tax, flight duties, community charge...probably not far off
Click to expand...

That topic was on the Jeremy Vine show a few weeks back, and a similar figure was talked about. Not surprised at all.
 
Black Swan said:
I saw an article a while back that suggested we're close to 70% tax payers in the UK if on the 40% tax rate. By the time you add on N.I., vat, the extra govt fuel charges (+ the vat), car tax, flight duties, community charge...probably not far off
Click to expand...

From April this year:

A basic rate tax payer is paid £100.

Income Tax is 20% (£20).

National insurance is 11.5% (£11.50).

He actually keeps £68.50. His marginal tax rate is 31.5%, before he has spent any of his £100 and incurred indirect taxes, or used it to pay for other direct taxes such as council tax.

However, in order to pay him £100 the employer must pay employer's national insurance at 13.3%.

The £68.50 salary costs £113.50 to provide. The actual rate of direct tax paid on the bulk of a basic rate tax payer's income is:

40%!

That is before it is used to make any purchases, many of which will attract one of the many indirect taxes.

However,
 
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