over the higher rate on divis over the higher rate on divis
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  1. #1

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    Default over the higher rate on divis

    So how many of you guys go over the higher rate and pay the extra tax under SA, or are you all obsessed with staying under and building reserves.

    My turnover will be £130k or so, and I want a new car....to fit in the new baby as well as the existing sprogs...... so I am planning to go about £15k over to get the £10k or so for the car and pay the extra tax.

    Do I have to resign from the contractors guild and walk away in shame for not being parsimonious??

  2. #2

    Lord of the Vectras

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    Have you compared the cost of a loan for a year vs. the tax you pay in going over the limit? You might find it's cheaper not to.

    I stuck to the limit for my first year, and probably will for the second, but then I didn't and won't have as much extra as you. The taper relief thing might not last anyhow.

  3. #3

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    Take what you need to live on - follow Mr Pickwick's advice - income £20 expenses £19 11s 6d = happiness, income £20 expenses £20 0s 6d = misery. If you need to pay higher rate tax, then so be it (even if it does seem galling). When I was a permie, one of my ambitions was to become a higher rate tax-payer!

  4. #4

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    Quote Originally Posted by mjshrimpton
    So how many of you guys go over the higher rate and pay the extra tax under SA, or are you all obsessed with staying under and building reserves.

    My turnover will be £130k or so, and I want a new car....to fit in the new baby as well as the existing sprogs...... so I am planning to go about £15k over to get the £10k or so for the car and pay the extra tax.

    Do I have to resign from the contractors guild and walk away in shame for not being parsimonious??
    I've always gone into higher rate to enjoy the lifestyle. Otherwise money would just sit there ...

  5. #5

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    Quote Originally Posted by BA to the Stars
    Take what you need to live on - follow Mr Pickwick's advice - income £20 expenses £19 11s 6d = happiness, income £20 expenses £20 0s 6d = misery. If you need to pay higher rate tax, then so be it (even if it does seem galling). When I was a permie, one of my ambitions was to become a higher rate tax-payer!
    Micawber, David Copperfield. So 12 years at public school wasn't a complete waste after all.

  6. #6

    Spocklike

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    Thanks ASB - I knew it was Dickens. That's what a bog standard comprehensive school education does for you!

  7. #7

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    Quote Originally Posted by ASB
    So 12 years at public school wasn't a complete waste after all.
    Christ. 12 years. I would have topped myself if I had stayed at mine for that long. Just like the headmaster who shot himself in the bell tower after being accused of being a pedalo. Never had that on Grange Hill.

  8. #8

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    What the head was a pedalo. Did he know Freddie Flintoff

  9. #9

    I live on CUK

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    Quote Originally Posted by BA to the Stars
    What the head was a pedalo. Did he know Freddie Flintoff
    Freddie Flintoff was riding a headmaster in the Carribean? That never hit the news.

    On topic, it's my 1st year and I plan to stay under the higher rate bracket. The shares are strucutred in such a way that jusr happens to take Mrs. OG up to the same level.

  10. #10

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    Quote Originally Posted by Old Greg
    Freddie Flintoff was riding a headmaster in the Carribean? That never hit the news.

    On topic, it's my 1st year and I plan to stay under the higher rate bracket. The shares are strucutred in such a way that jusr happens to take Mrs. OG up to the same level.
    The old Arctic Systems gamble.... good lad
    "Experience hath shewn, that even under the best forms of government those entrusted with power have, in time, and by slow operations, perverted it into tyranny. "


    Thomas Jefferson

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