Income Tax ?

[Chevvyf1]

Re: Income Tax ?

Given the number of small cars for about £10k these days ... I was thinking £25 was the high part of medium for a family car - with small BMW/Merc etc., and low specs at about £26-30k !

We are looking at a small no Road Tax, electric car for our retirement ... a regular Bath Meeting debate ...

[StephenL]

Re: Income Tax ?

A small, low, car is no use to me. I simply can't get down, and up, with any degree of ease due to knees. Also a 4wd is useful as many lanes round here, including one of the routes off the estate, are mud at best.

[Chevvyf1]

Re: Income Tax ?

A small, low, car is no use to me. I simply can't get down, and up, with any degree of ease due to knees. Also a 4wd is useful as many lanes round here, including one of the routes off the estate, are mud at best.

Arrr ! Now you have a great point ... we have looked at the Nissan Juke and a few other "looking higher" vehicles ... but with so many potholes we need good, nay great suspension so maybe a 4 x 4 ?

[Zuiko]

Re: Income Tax ?

I take the opposite view about tax and would like to completely abolish all indirect taxation such as VAT, Vehicle Tax, Fuel Tax, road tolls, etc in favour of a higher rate of Income Tax scaled to really make the rich pay their fair share.

[Chevvyf1]

Re: Income Tax ?

Interesting John, but how would that work ?

I am aware that many "Very rich" pay little or NO INCOME TAX placing income to offshore investments and living through a small but significant, Lifestyle Business


Although there have been changes ceasing the carry-back and carry forward "opportunities" & Pension Contributions and the number of Employments is limited the Top Tax lawyers have new ways now ...

[Zuiko]

Re: Income Tax ?

Interesting John, but how would that work ?

I am aware that many "Very rich" pay little or NO INCOME TAX placing income to offshore investments and living through a small but significant, Lifestyle Business


Although there have been changes ceasing the carry-back and carry forward "opportunities" & Pension Contributions and the number of Employments is limited the Top Tax lawyers have new ways now ...

There are certainly a few loopholes that would need closing, just as they do now. But whatever the system, you can guarantee that it will favour the rich! After all, what would be the point of having all that money if you couldn't use it to buy political favours and influence government policy?

[Jim Ford]

Re: Income Tax ?

There are certainly a few loopholes that would need closing, just as they do now. But whatever the system, you can guarantee that it will favour the rich! After all, what would be the point of having all that money if you couldn't use it to buy political favours and influence government policy?

Yes, the ruling on the Duke of Westminster case in the 30's was:

"Every man is entitled if he can to order his affairs so that the tax attaching under the appropriate Acts is less than it otherwise would be. If he succeeds in ordering them so as to secure this result, then, however unappreciative the Commissioners of Inland Revenue or his fellow tax-payers may be of his ingenuity, he cannot be compelled to pay an increased tax."

ISTRC a news item in the early 70's that the then Duke of Westminster (one of the richest men in the country), had recently paid just one shilling tax for one year.

I guess people in that position will find and wriggle through loopholes in the "General Anti-Abuse Rule (GAAR)" introduced earlier this year. In fact it wouldn't surprise me if people of power and influence haven't ensured that subtle loopholes have been built into 'GAAR'!

Jim

[skids]

Re: Income Tax ?

If a flat tax rate was introduced would it not reduce the benefit of the very rich using contrived schemes to avoid paying higher rate taxes (being careful to use the word 'avoid' rather than 'evade' as the blurring of the lines around those terms in relation to taxation is something I do get rather annoyed about - must be my age).

[Chevvyf1]

Re: Income Tax ?

If a flat tax rate was introduced would it not reduce the benefit of the very rich using contrived schemes to avoid paying higher rate taxes (being careful to use the word 'avoid' rather than 'evade' as the blurring of the lines around those terms in relation to taxation is something I do get rather annoyed about - must be my age).

Skids its maturity of years and knowledge gained

[Jim Ford]

Re: Income Tax ?

If a flat tax rate was introduced would it not reduce the benefit of the very rich using contrived schemes to avoid paying higher rate taxes (being careful to use the word 'avoid' rather than 'evade' as the blurring of the lines around those terms in relation to taxation is something I do get rather annoyed about - must be my age).

Avoidance is perfectly legal - see my above post re the Duke of Westminster. Evasion is illegal.

I believe the two terms are quite distinct in regards to taxation, as opposed to their generall interchangeably in everyday use.

Jim

[skids]

Re: Income Tax ?

Absolutely agree Jim. I have an ISA therefore I undertook a tax avoidance measure. When the beeb (R5L) had a phone in on the 'evils' of tax avoidance that was the point I made and they didn't seem to understand at first. If the tax system was simpler there wouldn't be so many loopholes and resulting contrived 'avoidance' measures people try to use. I've lived with the joy of IR35 for Lord knows how many years so am aware of how useless the current tax rules are.

[Chevvyf1]

Re: Income Tax ?

Absolutely agree Jim. I have an ISA therefore I undertook a tax avoidance measure. When the beeb (R5L) had a phone in on the 'evils' of tax avoidance that was the point I made and they didn't seem to understand at first. If the tax system was simpler there wouldn't be so many loopholes and resulting contrived 'avoidance' measures people try to use. I've lived with the joy of IR35 for Lord knows how many years so am aware of how useless the current tax rules are.

JOY of IR35

I could not describe, the Rev continuously trying to get my Clients to Employ me on PAYE as JOY

[Naughty Nigel]

Re: Income Tax ?

I kind of guessed as much.

It still takes me by surprise though, that I've spent so much on a Kia, yet for the same money I could have got a lower-end Merc. But take the badge off and it's fine.

I have decided my next car will be a Hyundai. Any car that can survive half a million kilometres in the hands of a Turkish taxi driver on Turkish roads must be better built than anything else on the planet.

[StephenL]

Re: Income Tax ?

I have decided my next car will be a Hyundai. Any car that can survive half a million kilometres in the hands of a Turkish taxi driver on Turkish roads must be better built than anything else on the planet.

Same company. They share a lot of components such as engines, gearbags, and suspension.

[Naughty Nigel]

Re: Income Tax ?

I take the opposite view about tax and would like to completely abolish all indirect taxation such as VAT, Vehicle Tax, Fuel Tax, road tolls, etc in favour of a higher rate of Income Tax scaled to really make the rich pay their fair share.

Its a nice idea John, bit it will never work. The rich have the luxury of deciding how much tax they pay, and if it gets too hot here they will simply move away where the tax climate is more favourable. I gather that many of the billionaires with houses in London pay next to no tax in the UK; or probably anywhere else for that matter!

The best chance is to get them to spend their money so at least they create jobs on which tax is paid.