Almost £4b more in cuts coming in the budget.

[sgtkate 10]

Go on, how much tax am I paying on a £82k turnover then?

 

That's going to vary massively depending on your costs but if you are taking a salary rather than dividends and so on then you'd pay standard income tax on your declared profit don't you? So no different to anyone else works in employment. The only real 'benefit' you have is that you can claim quite a few things as business expenses and there not pay income tax against them, but equally you get no paid leave, sick leave etc. You don't need to be VAT registered so you don't need to be paying the 20% on your turnover.

 

I'd expect you to be paying 20% tax on your profit as with a turnover of £82k, unless you are running an odd business with no expenses or overheads then you'd unlikely earn more then £32k needed to get into the high tax bracket.

 

I'm intentionally leaving out things like business rates, pensions and the like and assuming you are a sole trader.

 

Do I win a prize?

[tinfoilhat 11]

That's going to vary massively depending on your costs but if you are taking a salary rather than dividends and so on then you'd pay standard income tax on your declared profit don't you? So no different to anyone else works in employment. The only real 'benefit' you have is that you can claim quite a few things as business expenses and there not pay income tax against them, but equally you get no paid leave, sick leave etc. You don't need to be VAT registered so you don't need to be paying the 20% on your turnover.

 

I'd expect you to be paying 20% tax on your profit as with a turnover of £82k, unless you are running an odd business with no expenses or overheads then you'd unlikely earn more then £32k needed to get into the high tax bracket.

 

I'm intentionally leaving out things like business rates, pensions and the like and assuming you are a sole trader.

 

Do I win a prize?

 

Yes the "I've jumped in and given ricgem2002 the answer" prize. Yours is far too informative and has little comedic value:D

[Ted Heath 10]

Tories=cuts+serve the rich

 

Guess they are a little more careful not to use the thatcher method and do it little more subtle to avoid any major protests.

They will cut very sneakily this time and only after long time will we see the human results of that.

 

The Thatcher method was different, it had to be, out of control unions misrepresenting huge numbers of employees in heavy industry had the country in a spiralling decline.

 

Due to what her government did the Unions were brought under control, the economy turned from the "sick man of Europe" to an economic powerhouse the envy of the developed world.

 

Her policies were so successful that even the Labour party abandoned its outmoded and failed policies and continued her methods throughout the period Blair and brown were in power.

 

More Trade unionists voted for Thatcher in all her election victories than voted for the alternatives.

 

I know it is easy for the left to spout anti Thatcher rhetoric, but its all hot air. The fact is we are the fifth biggest economy in the world, have 31million in work, and have plenty of other positive figures. This is down to the start Thatcher gave us. You should be grateful.

[sgtkate 10]

Yes the "I've jumped in and given ricgem2002 the answer" prize. Yours is far too informative and has little comedic value:D

 

Whoops. Sorry...I got over-excited.

[L00b 441]

If you really want to stop multinationals playing the game it needs to be a global effort. That won't happen, but closing the loopholes and lowering the tax rate will help.

It is actually happening, albeit very ponderously and in a roundabout way (unsurprisingly so, since corpos -multinational and not- and relevant jurisdictions themselves are using all tricks braking on all fours all along).

 

Tax heavens have been very significantly bashed at the initiative of the US in the past few years, to the extent that there are actually very few 'real' ones remaining nowadays.

 

Now, the thicket of protectionist, incentivising and outright glad-handing special measures and other exemptions present in virtually every country's tax code...that will take many more years to harmonise and streamline for closing loopholes. I do think the political will is there, but -and as ever- these things can't ever happen in a vacuum (-when all of economical activity levels, employment levels, etc. are taken into account in tax policy formulation).

Ok. You are more knowledgable in this field than I am, so I accept your opinion. Bit sad as I honestly thought it could be workable way to stop offshoring of tax...could it be workable or is it absolutely a non-starter in your opinion.

Non-starter I'm afraid.

 

People need to shake off this fundamentally incorrect perception that revenue (turnover) = profit.

 

The profit is what's left after the revenue has been stripped of all the costs, which include supplies (and VAT on same), salaries (and employer taxes on same) and everything else (rent or mortgage, utilities, maintenance, <etc.> and VAT on them as well).

 

It makes sense to tax the (gross) profit, because that is the clearest expression (and the simplest, as a basis) of the value created by the business on its activity, which the business does not 'need' to simply exist (oversimplification of course, as I don't mention reserves and investments, but this is just making a simple point).

 

Taxing the revenue would effectively tax the business on everything that it does and needs to exist at the time of taxation, even if that isn't enough to endure. It's just compounding the business losses.

I definitely do not want to make life harder for SMEs, the exact opposite is true, I just want to stop multinationals playing the game.

You won't ever stop companies playing the game, until and unless either the game is killed off, or rendered too dangerous and/or uneconomical to play.

 

Killing off the game means, at its simplest, as basic and uniform a taxation policy and rate(s) (still based on profit) as possible, applicable to all without distinction, without any corporatist, protectionist, incentivising <etc.> exceptions. You could still play 'safely' with thresholding taxation basis according to profit rates or amounts (in much the same way as e.g. income tax is thresholded), without introducing the potential for new loopholes and yet achieving some level of control over taxing the richest more than the small guys.

 

Making it too dangerous and/or uneconomical...well, the rules and penalties have long been there, and on paper punitive enough, in this country as in so many others. But as we've seen with e.g. Vodafone in this country (there are many similar examples in others), the State is clearly reticent to apply them rigorously and consistently, for fear of damaging the jobs associated with the miscreant company, frightening the miscreant off to another jurisdiction, frightening other larger employers, etc. I can't remember the last time HMRC and the CPS went after a multinational's boardroom or CFO for tax evasion

Edited March 16, 2016 by L00b

[Obelix 11]

aww diddums just pay the tax on it

 

You've no idea what that involves do you. It might mean taking on someone 2 days a week just to do the books. That's a huge expense. It means extra paperwork and teim away from the business.

 

---------- Post added 16-03-2016 at 14:23 ----------

 

Non-point, I'm afraid.

 

The 50% rate was a political stunt by NuLab in the last months before the 2010 GE:

They'd done without it for 13 years prior, so that was just 11th hour political opportunism and vindictiveness.

 

Whats even funnier is that Labour dribble that the Tories are tax cutting for the rich - ignoring that the top rate is still 5% higher than the majority of the time when they were in power.

[RonJeremy 10]

You've no idea what that involves do you. It might mean taking on someone 2 days a week just to do the books. That's a huge expense. It means extra paperwork and teim away from the business.

 

---------- Post added 16-03-2016 at 14:23 ----------

 

 

Whats even funnier is that Labour dribble that the Tories are tax cutting for the rich - ignoring that the top rate is still 5% higher than the majority of the time when they were in power.

 

It also means that your prices will go up, because you then charge VAT. It probably wont be by the whole 20% because you claim back the VAT on the resourses you buy. It really shows how little someone knows when Ricgem makes a comment like this.

It is very typical of those who denigrate businesses that make a profit, employ people and collect taxes on behalf of the government.

[Anna B 1,417]

Having watched the analysis of this afternoon's budget strip it down to the truth, (or as close as they can get,) all I can say is there's lies, dam lies and statistics. Talk about smoke and mirrors....

 

Jeremy Corbyn's speech after Osborne's budget wasn't at all bad. Not polished, but the most fired up I've seen him on TV, he ripped the budget to pieces with the reality of the situation, and spoke for the majority who aren't fooled by little sniveller George. Let's see if any of that makes it onto the news

Edited March 16, 2016 by Anna B

[nightrider 13]

You've no idea what that involves do you. It might mean taking on someone 2 days a week just to do the books. That's a huge expense. It means extra paperwork and teim away from the business.

 

---------- Post added 16-03-2016 at 14:23 ----------

 

 

Whats even funnier is that Labour dribble that the Tories are tax cutting for the rich - ignoring that the top rate is still 5% higher than the majority of the time when they were in power.

 

Well the current Labour leadership does have rather different views to previous leadership teams. So why should they not oppose cutting it?

[tinfoilhat 11]

Having watched the analysis of this afternoon's budget strip it down to the truth, (or as close as they can get,) all I can say is there's lies, dam lies and statistics. Talk about smoke and mirrors....

 

Jeremy Corbyn's speech after Osborne's budget wasn't at all bad. Not polished, but the most fired up I've seen him on TV, he ripped the budget to pieces with the reality of the situation, and spoke for the majority who aren't fooled by little sniveller George. Let's see if any of that makes it onto the news

 

Try opening your other eye.

[Obelix 11]

Having watched the analysis of this afternoon's budget strip it down to the truth, (or as close as they can get,) all I can say is there's lies, dam lies and statistics. Talk about smoke and mirrors....

 

Jeremy Corbyn's speech after Osborne's budget wasn't at all bad. Not polished, but the most fired up I've seen him on TV, he ripped the budget to pieces with the reality of the situation, and spoke for the majority who aren't fooled by little sniveller George. Let's see if any of that makes it onto the news

 

So rather than your usual the sky is falling... what about this budget is bad then?

[tzijlstra 11]

Having watched the analysis of this afternoon's budget strip it down to the truth, (or as close as they can get,) all I can say is there's lies, dam lies and statistics. Talk about smoke and mirrors....

 

Jeremy Corbyn's speech after Osborne's budget wasn't at all bad. Not polished, but the most fired up I've seen him on TV, he ripped the budget to pieces with the reality of the situation, and spoke for the majority who aren't fooled by little sniveller George. Let's see if any of that makes it onto the news

 

No he (Corbyn) didn't, he made himself look like a fool who is prepared to borrow whatever is needed and not having any substantial alternative to the current debt-crisis the UK is in.

 

I am not a fan of the Tories, but when it comes to the economy they are spot on with their key-points: lower taxes, create work. Osborn is succeeding in that. The only way to understand that is by comparing Britain to similar economies. Growth is greater than any of the big European economies, unemployment is lower than any of the big European economies.

 

I suspect this is something you would only appreciate after living in a true social-democratic nation where tax-pressure is insane and life in general costs way more than it does here.

 

This budget-policy will appeal to the majority and shows up Labour as an outdated, outmoded and ultimately failing stalwart of an age gone by.