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Tax Challenge

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    #1

    Tax Challenge

    Right...here is a challenge for all you geeks out there...it has occupied many an hour of mine whilst sat in the car...

    Here is the scenario...

    Its my mums birthday and I want to get her a really nice card...so I drive to the nearest Clinton Cards (6 miles away and of course I use my car) and buy her a card costing £4.00

    How much tax do you think goes into Gordo's pocket?

    And for more fun, how many times does tax get paid during the full lifecycle of this purchase?

    You have to bear in mind tax paid in manufacturing, distribution, sales, fuel, road tax, vat etc etc...lets see who can get to the highest number with a justified arguement that we can all buy into...I reckon it will be more than £4!!
    Property advisor for the people
    Tags: None
    #2
    Has the card got glitter on it?

    Comment

      #3
      Did they put it in a paper bag for you, and was it plain brown or patterned?
      Insanity: repeating the same actions, but expecting different results.
      threadeds website, and here's my blog.

      Comment

        #4
        Was the card made from recycled pulp or from a sustainable source?

        If it wasn't recycled, was it one of Terry Wogan's trees?

        Comment

          #5
          Originally posted by Churchill
          Has the card got glitter on it?
          Or Bolan?

          Comment

            #6
            Originally posted by wendigo100
            Or Bolan?
            Oh..... Wrap a purple mini round the old oak tree....

            Comment

              #7
              Originally posted by Churchill
              Oh..... Wrap a purple mini round the old oak tree....
              I was singing that the other day. Had to explain it to the girly.
              Insanity: repeating the same actions, but expecting different results.
              threadeds website, and here's my blog.

              Comment

                #8
                Originally posted by Vito
                Right...here is a challenge for all you geeks out there...it has occupied many an hour of mine whilst sat in the car...

                Here is the scenario...

                Its my mums birthday and I want to get her a really nice card...so I drive to the nearest Clinton Cards (6 miles away and of course I use my car) and buy her a card costing £4.00

                How much tax do you think goes into Gordo's pocket?

                And for more fun, how many times does tax get paid during the full lifecycle of this purchase?

                You have to bear in mind tax paid in manufacturing, distribution, sales, fuel, road tax, vat etc etc...lets see who can get to the highest number with a justified arguement that we can all buy into...I reckon it will be more than £4!!
                I'm presuming you've claimed 6 x 40p = £2.40 as legitimate business mileage and £4.00 for the card as a legitimate business expenditure - client's birthday., moving £6.40 into your personal account, avoiding CT and 40% tax rate on divis, evading £3.29 in taxation. If you're on VAT FRS, we can ignore the VAT as it's factored into your flat rate, defrauding VAT man of a further 60p. OK, Gordo is now £3.89 down.

                Let's assume the card was manufactured abroad and import duty paid then distributed etc., and the retailer structures its taxes in the normal way. Take a wild stab at 50p tax in total before purchase. You've probably got a 4x4 gas guzzler or Audi TT and spent £1.50 on fuel so let's add another £1 in tax? In total, your purchase has taken about £2.40 ish from Gordo. How's that for a newbie? Can I have my Contractor badge now?

                Comment

                  #9
                  Originally posted by Old Greg
                  I'm presuming you've claimed 6 x 40p = £2.40 as legitimate business mileage and £4.00 for the card as a legitimate business expenditure - client's birthday., moving £6.40 into your personal account, avoiding CT and 40% tax rate on divis, evading £3.29 in taxation. If you're on VAT FRS, we can ignore the VAT as it's factored into your flat rate, defrauding VAT man of a further 60p. OK, Gordo is now £3.89 down.

                  Let's assume the card was manufactured abroad and import duty paid then distributed etc., and the retailer structures its taxes in the normal way. Take a wild stab at 50p tax in total before purchase. You've probably got a 4x4 gas guzzler or Audi TT and spent £1.50 on fuel so let's add another £1 in tax? In total, your purchase has taken about £2.40 ish from Gordo. How's that for a newbie? Can I have my Contractor badge now?
                  Hmmm...not sure you've put enough thought into this...contractors are far more anal than this...nowhere near enough detail
                  Property advisor for the people

                  Comment

                    #10
                    Originally posted by Old Greg
                    I'm presuming you've claimed 6 x 40p = £2.40 as legitimate business mileage and £4.00 for the card as a legitimate business expenditure - client's birthday., moving £6.40 into your personal account, avoiding CT and 40% tax rate on divis, evading £3.29 in taxation. If you're on VAT FRS, we can ignore the VAT as it's factored into your flat rate, defrauding VAT man of a further 60p. OK, Gordo is now £3.89 down.

                    Let's assume the card was manufactured abroad and import duty paid then distributed etc., and the retailer structures its taxes in the normal way. Take a wild stab at 50p tax in total before purchase. You've probably got a 4x4 gas guzzler or Audi TT and spent £1.50 on fuel so let's add another £1 in tax? In total, your purchase has taken about £2.40 ish from Gordo. How's that for a newbie? Can I have my Contractor badge now?
                    Then you get investigated and the inspector disallows the milage claim, and the purchase of the birthday card [wink]

                    Comment

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