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24% corporation tax

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    #51
    Originally posted by hugebrain View Post
    Short for value added tax. As a finance type contractor the government get 20% since investment banks can’t claim it back. Then they get my corporation tax and then dividend tax.

    It all adds up to more than income tax as far as I can tell.

    (But my username is only true for size, not quality)
    HMRC regard VAT as a zero game item, yes finance is an edge case but even then they usually have VATable services that offset some or all of the VAT they pay suppliers.

    Mention VAT is an argument about the amount of tax contractors pay and HMRC will ignore the rest of your argument...
    Last edited by eek; 2 September 2020, 11:45.
    merely at clientco for the entertainment

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      #52
      Originally posted by Lance View Post
      here's a thought...... but not one they'll advertise too loudly...



      When we crash out of the EU on 1st Jan, a good percentage of the annual £372b worth of imports will attract VAT at 20%. At a conservative £200b that would be £40b additional revenue.
      And not a single 'tax rise' to get there.
      Most of our imports are to VAT registered companies so no VAT is charged in the exporting country. The only money HMRC will gain here is the small amount of personal imports none VAT registered individuals import and that will be an utterly tiny percentage of that £372bn.
      merely at clientco for the entertainment

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        #53
        Originally posted by eek View Post
        HMRC regard VAT as a zero game item, yes finance is an edge case but even then they usually have VATable services that offset some or all of the VAT they pay suppliers.
        I don't think that's true. VAT brings in huge amounts of revenue. It's not neutral except for VAT registered businesses.

        Originally posted by eek View Post
        Most of our imports are to VAT registered companies so no VAT is charged in the exporting country. The only money HMRC will gain here is the small amount of personal imports none VAT registered individuals import and that will be an utterly tiny percentage of that £372bn.
        This may well be true and is the flaw in my suggestion.
        But do you actually know how much of that import is personal imports? I bet it's not a tiny percentage.
        Of course VAT could well be used as a stealth tax instead of import duties for goods from the EU. Just don't allow companies to claim back VAT on EU imports. There's your £40b extra revenue without too much political fallout.
        See You Next Tuesday

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          #54
          VAT in a B2B sense is (mostly) zero sum. Ultimately, it's the consumer and non-VAT registered entities that pay it.

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            #55
            Originally posted by eek View Post
            HMRC regard VAT as a zero game item, yes finance is an edge case but even then they usually have VATable services that offset some or all of the VAT they pay suppliers.

            Mention VAT is an argument about the amount of tax contractors pay and HMRC will ignore the rest of your argument...
            Agencies will charge VAT to the banks regardless of whether you operate a Ltd or not. The only difference for Ltd's is that the Ltd hands over the VAT to HMRC not the agency. Therefore it is a zero sum game item that is irrelevant in deciding how to tax contractors.
            I'm alright Jack

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              #56
              Originally posted by Lance View Post
              I don't think that's true. VAT brings in huge amounts of revenue. It's not neutral except for VAT registered businesses.
              We are talking about in the situation where a contractor's limited company is paying VAT - in any scenario where a contractor is talking about the VAT they pay it's a zero sum game.

              Originally posted by Lance View Post
              This may well be true and is the flaw in my suggestion.
              But do you actually know how much of that import is personal imports? I bet it's not a tiny percentage.
              Of course VAT could well be used as a stealth tax instead of import duties for goods from the EU. Just don't allow companies to claim back VAT on EU imports. There's your £40b extra revenue without too much political fallout.
              Um how does that work as that is exactly how it currently works. My VAT registered company imports £8000 of parts from Germany, combines them and sells them for £12,000 after 20% VAT. HMRC get the 20% VAT.

              If my company had to pay VAT on the parts as they are imported and cannot claim it back all you've done is made my costs £1600 more expensive and reduced my profit from £2000 to £400 resulting in me having to now charge £14,400 for the goods making me un-competitive.

              Trump did exactly that with all his tariffs from China - end result was that it was cheaper to import the finished goods direct from China rather than importing the steel and keeping the manufacturing in the UK.
              merely at clientco for the entertainment

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                #57
                Originally posted by Andy2 View Post
                it's only fair. I am paying 43% tax under umbrella. 24% is a bargain comapred to that.
                pay your bit.
                I hope your Umbrella is paying a chunk into your pension!
                Old Greg - In search of acceptance since Mar 2007. Hoping each leap will be his last.

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                  #58
                  Originally posted by Andy2 View Post
                  it's only fair. I am paying 43% tax under umbrella. 24% is a bargain comapred to that.
                  pay your bit.
                  43% is for money in your pocket ready to spend and it's your choice, you could be sending it to a pension instead.
                  merely at clientco for the entertainment

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                    #59
                    Originally posted by Zigenare View Post
                    I hope your Umbrella is paying a chunk into your pension!
                    yes but its only 40k into pension, the rest of the money attracts higher rate tax.
                    I think its better to work only 8 months a year to reduce tax.

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                      #60
                      Originally posted by PCTNN View Post
                      That't the problem of capitalism: makes you having to work as much as possible because you MUST have more and more stuff.

                      Society should just chill.
                      There speaks a high earner. YOU can reduce your income 20% and downgrade to 4* holidays and a new BMW every 3 years not ever 2 years.
                      Someone on minimum wage is thinking about being able to buy groceries, pay the rent, buy school clothes for the kids and maybe pay utilities if they can afford it. Not exactly consumerism gone mad!
                      Originally posted by MaryPoppins
                      I'd still not breastfeed a nazi
                      Originally posted by vetran
                      Urine is quite nourishing

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