truman Posted August 17, 2011 Share Posted August 17, 2011 I've already stated above that my view is that people should pay the amount of income tax that their tax band says they should, And unless people break the law that is what they do.... Link to comment Share on other sites More sharing options...
convert Posted August 17, 2011 Share Posted August 17, 2011 Nothing against it in itself, until it becomes a vehicle for people to avoid paying their fair share. Define fair share though. Why, as a higer rate tax payer, who uses fewer public services than most (Private healthcare and a VA school, etc) should I have to pay more into the system than someone on £30K per year? Shouldn't I get a tax break for my private health care contributions? Aren't I paying more than my 'fair share'? Link to comment Share on other sites More sharing options...
Cyclone Posted August 17, 2011 Share Posted August 17, 2011 You know I'm not saying that. Nice try to twist my words It's what you said, no twisting at all. Do you think that business owners should not be able to take dividends? Link to comment Share on other sites More sharing options...
Cyclone Posted August 17, 2011 Share Posted August 17, 2011 I've already stated above that my view is that people should pay the amount of income tax that their tax band says they should, employed or self-employed. I've explained the reasons - services, social contract etc... Maybe this is where you're going wrong to start with. I got a new tax band notification this morning as it happens. It doesn't tell me how much tax I should pay, it tells me how much I can earn before I have to pay any tax. There are then a series of tax bands which are set by the government, there are different bands for PAYE and dividend income. You work out how much tax you should pay using your tax code and these bands. It couldn't get much simpler. Except for you you avoid paying some tax because pension contributions come out of gross pay, so you pretend that you don't get paid that bit for the calculations. You've decided to structure your company's finances so you pay minimal income tax, and a lesser rate on dividends. That is not the same as buying VAT-free clothes for kids. One is immoral, the other could be described as virtuous. So you are saying that taking dividends is immoral, I wasn't twisting your words was I. Are the dividends paid into your pension fund (from it's investment) immoral as well, or is that okay because it's you? Link to comment Share on other sites More sharing options...
Cyclone Posted August 17, 2011 Share Posted August 17, 2011 In some cases I think it is wrong, yes. Those cases being whenever it happens to be different to the way you do it... And you're absolutely sure you're not jealous. Link to comment Share on other sites More sharing options...
Cyclone Posted August 17, 2011 Share Posted August 17, 2011 Define "fair" .. is it the amount you think they should pay or what? I think he already made it clear that "fair" means paying as much (as a %) as him, which is to say the amount they would pay if their entire income were PAYE. Anything less than PAYE is unfair by his definition and therefore immoral. Link to comment Share on other sites More sharing options...
truman Posted August 17, 2011 Share Posted August 17, 2011 I think he already made it clear that "fair" means paying as much (as a %) as him, which is to say the amount they would pay if their entire income were PAYE. Anything less than PAYE is unfair by his definition and therefore immoral. Yet he feels it's fair for him to get tax relief....? There's a word starting with "H" that comes to mind..I thought he wanted everyone to have as much left after tax as he does..would that be fair? To be honest I don't think he's made anything clear.. Link to comment Share on other sites More sharing options...
I1L2T3 Posted August 17, 2011 Share Posted August 17, 2011 Maybe this is where you're going wrong to start with. I got a new tax band notification this morning as it happens. It doesn't tell me how much tax I should pay, it tells me how much I can earn before I have to pay any tax. There are then a series of tax bands which are set by the government, there are different bands for PAYE and dividend income. You work out how much tax you should pay using your tax code and these bands. It couldn't get much simpler. Except for you you avoid paying some tax because pension contributions come out of gross pay, so you pretend that you don't get paid that bit for the calculations. So you are saying that taking dividends is immoral, I wasn't twisting your words was I. Are the dividends paid into your pension fund (from it's investment) immoral as well, or is that okay because it's you? Well, that all hinges on what you decide to pay yorself. Which you admit is nothing. Link to comment Share on other sites More sharing options...
Cyclone Posted August 17, 2011 Share Posted August 17, 2011 His argument isn't logical, no wonder it's difficult for him to make it clear! Link to comment Share on other sites More sharing options...
I1L2T3 Posted August 17, 2011 Share Posted August 17, 2011 Why? They're just doing the same as you.. using the tax system as it is... I never said they broke the law. But sometimes the law is wrong and needs to be changed. Link to comment Share on other sites More sharing options...
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