UK tax system

[tlc]

This popped up on my YT feed.

It was an eye opener for me at least.

 

[Wight Flight]

Very misleading.

Clickbait at best.

[spunko]

9 hours ago, Wight Flight said:

Very misleading.

Clickbait at best.

I started half way through and it seemed pretty decent generally. 

[Wight Flight]

39 minutes ago, spunko said:

I started half way through and it seemed pretty decent generally. 

She needs to add Corp Tax and Divi tax together for a fair comparison.

No mention of NI.

You can't put your motoring expenses through that cheaply.

There are some good advantages, but she didn't go near them.

[Cosmic]

6 hours ago, Wight Flight said:

She needs to add Corp Tax and Divi tax together for a fair comparison.

No mention of NI.

You can't put your motoring expenses through that cheaply.

There are some good advantages, but she didn't go near them.

Agreed. The NI is important when you compare Higher Rate tax vs Corp+Dividends structure for paying a director for example. 

[Pip321]

As an employee you can’t write off your laptop costs…..but as an employee I never paid for my laptop, stapler, printer, printer ink etc etc.

There are advantages to being a limited company verses salaried employment. However once I realised the differences my attitude changed complete in terms of how I saw my salary.

Max out on share match scheme whereby £125 a month was deducted from my salary to buy shares in the business. This was tax and NI free plus the company threw in some free shares too.

Share save scheme….not tax efficient but only open to employees and a great one way bet with £500 pcm into the scheme. And f the shares were worth less after 3 years I didn’t buy them buy just took the cash(plus interest) back.

Pension…..bang, all the way up to the max bringing me back to basic rate and I used savings to live on if need be.

Bought 5 days holiday a year again salary sacrifice so tax and NI free. Of course as an employee this was added to my 30 days paid holiday, plus bank holidays.

Plus loads of other perks eg buy Sainsburys vouchers £1000 a year for £800, cheap mortgage, company car, bupa cover etc etc. Some was taxed so that needed to be factored in as to whether it was worthwhile =(the car in the end wasn’t) 

Once I could see how businesses worked I treated my salary as a business income. Utilised my savings and reduced my tax from £2k a month to some months minus £80. Not easy though because you need a high(ish) salary and an abundance of savings…..but that’s what wealthy people do who own businesses.

I am not saying she is wrong but there are other ways to skin a cat. 

Edited Sunday at 15:36 by Pip321

[Phil]

Doing 5.5 days at a college teaching Construction skills, very basic. Stoppages around £450 a week

( includes small student loan , paying to get paid, CITB- Wtf). I sit here now all warm and fuzzy in my tummy knowing I'm helping an imo and more importantly, the hotel barrons. What a time to be alive. Hmmm. No advice please on tax. This is work is only temporary.

[Harley]

4 hours ago, Pip321 said:

As an employee you can’t write off your laptop costs…..but as an employee I never paid for my laptop, stapler, printer, printer ink etc etc.

There are advantages to being a limited company verses salaried employment. However once I realised the differences my attitude changed complete in terms of how I saw my salary.

Max out on share match scheme whereby £125 a month was deducted from my salary to buy shares in the business. This was tax and NI free plus the company threw in some free shares too.

Share save scheme….not tax efficient but only open to employees and a great one way bet with £500 pcm into the scheme. And f the shares were worth less after 3 years I didn’t buy them buy just took the cash(plus interest) back.

Pension…..bang, all the way up to the max bringing me back to basic rate and I used savings to live on if need be.

Bought 5 days holiday a year again salary sacrifice so tax and NI free. Of course as an employee this was added to my 30 days paid holiday, plus bank holidays.

Plus loads of other perks eg buy Sainsburys vouchers £1000 a year for £800, cheap mortgage, company car, bupa cover etc etc. Some was taxed so that needed to be factored in as to whether it was worthwhile =(the car in the end wasn’t) 

Once I could see how businesses worked I treated my salary as a business income. Utilised my savings and reduced my tax from £2k a month to some months minus £80. Not easy though because you need a high(ish) salary and an abundance of savings…..but that’s what wealthy people do who own businesses.

I am not saying she is wrong but there are other ways to skin a cat. 

The number of work colleagues who didn't know how to properly fill in a tax return, or worse, were pleased they didn't need to....!