Cash getting eroded by inflation in the UK.

[Stillearly]

Meanwhile in France energy price increases capped at 4% ...

[coxyhog]

From my local rag....

https://www.watfordobserver.co.uk/news/20051885.staff-salaries-100k-watford-hertfordshire-councils/

Little wonder our council taxes are so high with this lot on the gravy train😡.

[coxyhog]

My monthly council tax + my energy bill comes to £518.

My state pension is £722.

[andyajn]

23 hours ago, galenkia said:

NI contributions went up 1.25p in the pound today.

Gonna be a lot of people getting into debt. Always the lowest paid who seem to get hammered.

Time they put an end to the rich and corporations tax avoidance.

Depends on your definition of "rich" 

[Bazle]

On 4/6/2022 at 3:27 PM, galenkia said:

NI contributions went up 1.25p in the pound today.

Gonna be a lot of people getting into debt. Always the lowest paid who seem to get hammered.

https://www.nationalworld.com/lifestyle/money/national-insurance-rise-how-much-will-i-pay-new-rates-explained-3642567

The Institute for Fiscal Studies (IFS) calculates when taking the rate hike and threshold increase together, the National Insurance bill will fall for anyone earning less than £35,000, for the 2022/23 tax year - compared to the previous year.

Those earning more than £35,000 will pay more, the IFS calculates.

From 6 July, depending on your salary, NIC will change as follows:

• £20,000 salary - £82 a month.
• £30,000 salary - £192 a month
• £40,000 salary - £303 a month
• £50,000 salary - £413 a month
• £60,000 salary - £443 a month
• £70,000 salary - £470 a month
• £80,000 salary - £497 a month
• £90,000 salary - £524 a month
• £100,000 salary -£551 a month

[galenkia]

34 minutes ago, andyajn said:

Depends on your definition of "rich" 

Basically those who can afford accountants to hide their cash.

[Krapow]

I'm not really a gambler, i prefer fixed rates.

I took an energy 2 year fixed rate about this time last year, £73pm for gas and electric until May 23, a wise decision.

I also took another 5 year fix on a mortgage a few days ago, the 5 year fix it was already on was up in December, but i paid a couple of hundred early release to get a new 5 year fix now, just £5 more per month than what i'm paying now, as rates are ongoing to go one way, it's peace of mind as well. 

I always haggle with phone, sky, internet etc, nearly always get a decent fixed rate. 

[galenkia]

And we wonder why we're struggling now. 

 

[john luke]

Let me throw this into the ring.

Many UK Citizens hold an ISA (Individual Savings Account). It works like a normal savings account, except you don’t pay any UK income or capital gains tax.  Account holders can either invest cash or stocks and shares plus other equities.

The products originally started life as TESSA accounts (Tax Except Special Savings Account) during the Margaret Thatcher era Consevative Government and later modified during to period of the Tony Blair Labour Government and re titled ISA.  The bottom line is that one does not pay UK Income Tax or Capital Gains Tax on interest, gains or income derived from investing in the account.

Should account holders close these accounts so that they can pay more tax on their investiments?

[Sangsom]

43 minutes ago, john luke said:

Let me throw this into the ring.

Many UK Citizens hold an ISA (Individual Savings Account). It works like a normal savings account, except you don’t pay any UK income or capital gains tax.  Account holders can either invest cash or stocks and shares plus other equities.

The products originally started life as TESSA accounts (Tax Except Special Savings Account) during the Margaret Thatcher era Consevative Government and later modified during to period of the Tony Blair Labour Government and re titled ISA.  The bottom line is that one does not pay UK Income Tax or Capital Gains Tax on interest, gains or income derived from investing in the account.

Should account holders close these accounts so that they can pay more tax on their investiments?

Not entirely true, you will have already paid tax on earnings before you put it into this type of account.

[galenkia]

1 hour ago, john luke said:

Let me throw this into the ring.

Many UK Citizens hold an ISA (Individual Savings Account). It works like a normal savings account, except you don’t pay any UK income or capital gains tax.  Account holders can either invest cash or stocks and shares plus other equities.

The products originally started life as TESSA accounts (Tax Except Special Savings Account) during the Margaret Thatcher era Consevative Government and later modified during to period of the Tony Blair Labour Government and re titled ISA.  The bottom line is that one does not pay UK Income Tax or Capital Gains Tax on interest, gains or income derived from investing in the account.

Should account holders close these accounts so that they can pay more tax on their investiments?

Are you seriously comparing a legal savings account to tax dodging rich people and companies hiding money in offshore accounts?. 

Are you for real?. 

 

[Sangsom]

17 minutes ago, galenkia said:

Are you seriously comparing a legal savings account to tax dodging rich people and companies hiding money in offshore accounts?. 

Are you for real?. 

 

I’d hold your horses for full facts before claims of tax dodging. She has paid tax on uk earnings, it may well be that she has paid tax in other countries like India where it was earned, the full facts need to be established. It’s currently all a bit clickbaity and being used as a political tool.

As for Sunak himself, people are quick to forget that he pushed for and approved the biggest ever peacetime intervention in the jobs market in the form of the furlough scheme. So he can be forgiven for keeping an eye on the public purse strings unlike the magic money tree Labour seem to think they would have if they got into power.

[john luke]

51 minutes ago, galenkia said:

Are you seriously comparing a legal savings account to tax dodging rich people and companies hiding money in offshore accounts?. 

Are you for real?. 

 

I am not comparing anything; I am merely adding another aspect to the discussion.  As far as tax avoidance and tax evasion; one is legal, the other is not.  Plenty on this forum and the internet generally about the two.😊

[Stillearly]

1 hour ago, Sangsom said:

I’d hold your horses for full facts before claims of tax dodging. She has paid tax on uk earnings, it may well be that she has paid tax in other countries like India where it was earned, the full facts need to be established. It’s currently all a bit clickbaity and being used as a political tool.

As for Sunak himself, people are quick to forget that he pushed for and approved the biggest ever peacetime intervention in the jobs market in the form of the furlough scheme. So he can be forgiven for keeping an eye on the public purse strings unlike the magic money tree Labour seem to think they would have if they got into power.

She paid £30,000 a year for non-dom status to save paying £20m in U.K. tax ... the non-dom status is dodgy because it suggests that the U.K. isn't her permanent home ... that doesn't square her husband being Chancellor as well as his ambition to be PM ...

magic money tree 5555 where do you think Sunak  got the money from to assist during Covid , he borrowed it .... as for keeping an eye on the public purse , they have spaffed away billions in dodgy PPE deals with their mates and billions written off in fraudulent claims with companies like his wife's ... 

[andyajn]

19 hours ago, galenkia said:

Basically those who can afford accountants to hide their cash.

Running my own company I have to have the services of accountants but all they seem to do is tell me how much tax I have to pay!! Don't think I am in the tax avoidance category.

[andyajn]

4 hours ago, john luke said:

Let me throw this into the ring.

Many UK Citizens hold an ISA (Individual Savings Account). It works like a normal savings account, except you don’t pay any UK income or capital gains tax.  Account holders can either invest cash or stocks and shares plus other equities.

The products originally started life as TESSA accounts (Tax Except Special Savings Account) during the Margaret Thatcher era Consevative Government and later modified during to period of the Tony Blair Labour Government and re titled ISA.  The bottom line is that one does not pay UK Income Tax or Capital Gains Tax on interest, gains or income derived from investing in the account.

Should account holders close these accounts so that they can pay more tax on their investiments?

With the proviso that you can only pay in 20k per annum. Which I guess if you are seriously rich is not a great deal!

[galenkia]

27 minutes ago, Stillearly said:

She paid £30,000 a year for non-dom status to save paying £20m in U.K. tax ... the non-dom status is dodgy because it suggests that the U.K. isn't her permanent home ... that doesn't square her husband being Chancellor as well as his ambition to be PM ...

magic money tree 5555 where do you think Sunak  got the money from to assist during Covid , he borrowed it .... as for keeping an eye on the public purse , they have spaffed away billions in dodgy PPE deals with their mates and billions written off in fraudulent claims with companies like his wife's ... 

Glad I'm not the only one who can see how dodgy the Sunak's are.

👍

[boydeste]

2 minutes ago, andyajn said:

Running my own company I have to have the services of accountants but all they seem to do is tell me how much tax I have to pay!! Don't think I am in the tax avoidance category.

Plus they charge you lots of money for the privilege  too!

[Stillearly]

1 minute ago, galenkia said:

Glad I'm not the only one who can see how dodgy the Sunak's are.

👍

The funny thing all this is being leaked from No. 10 ( allegedly) .. BJ putting the boot in to end any further political aspirations by his Chancellor..

[galenkia]

6 minutes ago, andyajn said:

With the proviso that you can only pay in 20k per annum. Which I guess if you are seriously rich is not a great deal!

I did earn the princely sum of 15p interest in my instant access ISA on a balance that was in the thousands all year. I'll donate it to the NHS if you want.🤣

Edited April 8, 2022 by galenkia

[Butch]

4 hours ago, john luke said:

Let me throw this into the ring.

Many UK Citizens hold an ISA (Individual Savings Account). It works like a normal savings account, except you don’t pay any UK income or capital gains tax.  Account holders can either invest cash or stocks and shares plus other equities.

The products originally started life as TESSA accounts (Tax Except Special Savings Account) during the Margaret Thatcher era Consevative Government and later modified during to period of the Tony Blair Labour Government and re titled ISA.  The bottom line is that one does not pay UK Income Tax or Capital Gains Tax on interest, gains or income derived from investing in the account.

Should account holders close these accounts so that they can pay more tax on their investiments?

Yes, correct.

One caveat though, you don't pay any income tax on the interest or principal amount money when you withdraw it. However, Capital Gains is applied when an individual makes a profit on a second house or asset that has increased in value during your ownership, such as a painting or classic car for example. Tax is paid on any profit, not including the original purchase price.

What you cannot do is sell an item for a profit, put the proceeds into an ISA and claim there's no CGT to pay on it. That's naughty and you can't wrap the value of physical assets in an ISA.

Another option is a SIPP which offers Tax relief, and any monies in it can be withdrawn tax free under certain conditions and subject to certain criteria (25% of annual Tax allowance once past the age of 55 I think, but might well be wrong on that assumption) and that amount is dependent upon which basic rate of Tax threshold into which a person falls. Works better if you're in the 40% Tax bracket or above. Again, that is a very loose and possibly incorrect interpretation of a SIPP, so exercise due diligence if you consider one.

The problem with a Cash ISA is as follows: If the interest rate on your ISA is 1%, but inflation is running at 8%, it still devalues your cash as even with the tax free benefit savings being shielded, it is only marginally better than keeping the money in a bank, but still detrimental to the overall value.

A stocks and shares ISA with a decent portfolio and spread of risk is probably better.

With current inflationary pressures, shocking interest rates and the cost of living going through the roof, it's any wonder that people get pissy when they see a headline such as this.

I'm all for Capitalism, as a business owner myself it works well most of the time. What I'm not pleased about is a massive wealth disparity in society getting larger by the day which could be partly fixed by closing some Tax avoidance loopholes for any Company or individual generating colossal profits.

We do need to make the UK attractive for investment, yes, but arguably not at the expense of the poorer or lower wage earners in society not being able to eat 3 meals a day and provide decent homes for their own families.

[Sangsom]

2 hours ago, Stillearly said:

She paid £30,000 a year for non-dom status to save paying £20m in U.K. tax ... the non-dom status is dodgy because it suggests that the U.K. isn't her permanent home ... that doesn't square her husband being Chancellor as well as his ambition to be PM ...

magic money tree 5555 where do you think Sunak  got the money from to assist during Covid , he borrowed it .... as for keeping an eye on the public purse , they have spaffed away billions in dodgy PPE deals with their mates and billions written off in fraudulent claims with companies like his wife's ... 

Sunak has just done an interview saying she has paid all uk tax on uk earnings. She has also paid tax on all her earnings in India. I doubt he’d be making that statement if it wasn’t true as he knows the papers will go digging. So it sounds like she has done nothing wrong.

[Bazle]

3 hours ago, Stillearly said:

She paid £30,000 a year for non-dom status to save paying £20m in U.K. tax ...

Is the £20m before or after the double taxation relief she would be entitled to?

[Stillearly]

1 hour ago, Sangsom said:

Sunak has just done an interview saying she has paid all uk tax on uk earnings. She has also paid tax on all her earnings in India. I doubt he’d be making that statement if it wasn’t true as he knows the papers will go digging. So it sounds like she has done nothing wrong.

555 he lied in another interview saying she needed to be non dom to keep her Indian passport .. it doesn't look good for the man setting the rules for the U.K. to try and circumnavigate them for his own family .. 

 

[Stillearly]