Real costs

[sheerwater]

Hi,
I dont know what the average person earns who posts on this site but a recent letter in the Daily Mail got me thinking about real costs of servicing. For example a £500 service and repair will require a standard rate taxpayer to earn £660 and a higher rate taxpayer will need to earn £840. (rough figures not including NI and pensions etc.) Of the £500 service the dealer will receive about £425 after paying Vat. So the tax payable on a £500 service is £235 for standard rate taxpayers and £415 for higher rate payers !!!!!! Wow!!!! Cheers Nige

Look on the bright side the higher rate of tax is 42% in the UK isn't it? I am in the medium tax bracket (and tax brakets are set much lower) and that is 47%, next step is 55%, which is much before the 32K GBP....... The lowest tax bracket is 32% iirc. And VAT is 19%

We were working out at my last company.

You own a company that has 1,000,000 profit
500,000 goes as corperate tax
You get 500,000
tax on that is approx 250,000 (actually a little over)
you get 250,000
Now suppose you want to buy a car with that......


19% VAT off leaves 210.000
33% Car buying tax leaves 138.000

So when you make 1,000,000 you can buy a car with a catalogue price of 138,000 and the goverment makes nearly 900,000.

I must admit that I am relying on others for the corperate tax figures...

Stu

Well, without going into details we run our own business and pay only 25 per cent corporation tax and that's it. Perfectly legal. By being VAT registered in Belgium, we do not even have to pay VAT. Being employed stinks and going to the dealer stinks. Quite frankly, participating in society stinks.

George

Resident near Leuven in Belgium

'87 745 GLE Turbo Diesel Intercooler (D24TIC/M46, 200k)
'88 745 Turbo Intercooler (B230FT/M46, 270k)
'88 745 GL (B200E/M47, 200k)
'89 440 GL (B17, 90k)

[morsing]

That's nothing. In Denmark you'd have to earn over £1500 to pay for a £500 service.

Yes, remember Pippi Longstocking? The author of that book one year paid 134 per cent tax on her earnings. No, I am not kidding you, this is true, happens in Sweden. Happened to Ingmar Bergman too.

George

Resident near Leuven in Belgium

'87 745 GLE Turbo Diesel Intercooler (D24TIC/M46, 200k)
'88 745 Turbo Intercooler (B230FT/M46, 270k)
'88 745 GL (B200E/M47, 200k)
'89 440 GL (B17, 90k)

134%? Now that is just a little bit high!

Stu

[sheerwater]

So now we get to the real cost of living !!!! So what do the Governments do with all this cash.....answers on 185 sheets of A4 paper in tiny writing !!!! Cheers Nige

[morsing]

Denmark is paying off debts.

In fact the government last year said that with the amount they're paying off debts with, it will be gone in eight years and the amount is actually a bit bigger than what they get in in income taxes.

See where I'm going :) In eight years time Denmark can support itself without income taxes, woohoo ;-)

[sheerwater]

Any bets whether they actually cut taxes to zero!!!!!! Please send answers on a postcard to Gordon Brown. On another note did anyone see that the average citizen works until mid June to pay off their taxes before they really get money to spend. Next year Im staying in bed until mid June !!!! Cheers Nige

And the latest to do with what taxes pay for. Northhampton are closing down 2 of their 7 country parks to save 45000 pounds. How much do speed humps and camera's cost.......

Stu