What income tax amount per year do you pay?

[Captain Caveman]

I'm self employed and I do this by being an employee of my own company. In the UK, we have a tax allowance of £12,570 where your wage incurs £0 tax. After then, your wage is taxed at different levels.

But as being in charge as a director, I decide what goes through the wage system. Despite being a director/employee, I'm still classed as self employed so I'm exempt from minimum wage. Guess what? I don't earn more than £12,570 per year, so no income tax for me.

Then I use above board accounting to take rent and rate's, mileage allowance etc.. out of the business, tax free. The company pays 19% corporation tax on any profit, which I can take as a dividend with no further tax liability.

So my income tax per year is £0.00. What's yours?

Morals? The reason why I do this is, I disagree on what the government spends our tax money on, the less I can contribute, the better.

 

[Leweman]

How is the highest one so low? There is no way that's representative. I guess the plus part covers it all. But still.

 

[okfine]

$2 dolla.

 

[Dont Taz Me Bro]

I paid almost $20,000 in taxes last year.

 

[jwoodie]

If you are asking about the U.S., the usual federal income tax rate is 28%, state rate is ~5%, and Social Security & Medicare ~8% (paid by employee and employer). Then there are sales taxes, property taxes and government mandated fees. All add up to about 40% of earned income.

 

[Captain Caveman]

I paid almost $20,000 in taxes last year.

Blimey, $20,000!!!!!!!!

My email link off HMRC suggests my income tax bill will be £33 this year, where as, it'll be zero.

You need to change your accountant.

 

[Captain Caveman]

How is the highest one so low? There is no way that's representative. I guess the plus part covers it all. But still.

Just thought people on this board had tax knowledge to pay very little.

 

[Leweman]

Just thought people on this board had tax knowledge to pay very little.

Nah. IRS is too selective in who they persecute. That's purposeful obviously.

 

[Blues Man]

I didn't pay a dime last year

it's one of the benefits of being financially independent.

 

[Dont Taz Me Bro]

Blimey, $20,000!!!!!!!!

My email link off HMRC suggests my income tax bill will be £33 this year, where as, it'll be zero.

You need to change your accountant.

Well, one, I make a decent chunk of change. On top of that, I have dividend income and I was also factoring in our property taxes.

 

[initforme]

I am retired collecting a pension and I vestments. I pay more than a billionaire.

 

[Flash]

I am retired collecting a pension and I vestments. I pay more than a billionaire.

The typical billionaire pays millions each year in various taxes. Property taxes, corporate taxes, sales taxes, various business hidden taxes and fees, etc.

However, having good accountants they can adjust their "earned income" to be very little on paper and therefore pay very little Federal Income Tax but they get hit many other ways.

For instance, a guy like Elon Musk may chose to have an annual salary of say $50K a year. On that he may pay only a couple thousand in income tax. Less than what many Americans pay. The rest of his salary package may be in company stock. It is only realize as income when he cashes it in. In the meantime the company picks up many of his daily expenses, like owning the house he lives in and the vehicle he drives, etc.

Ask Biden how come his family isn't paying any income tax on that money they are receiving from China and other foreign interest.

 

[Harpy Eagle]

Between the wife and I we paid just over 38 grand.

 

[Harpy Eagle]

I am retired collecting a pension and I vestments. I pay more than a billionaire.

A higher percent, not more total

 

[ReinyDays]

I'm self employed and I do this by being an employee of my own company. In the UK, we have a tax allowance of £12,570 where your wage incurs £0 tax. After then, your wage is taxed at different levels.

But as being in charge as a director, I decide what goes through the wage system. Despite being a director/employee, I'm still classed as self employed so I'm exempt from minimum wage. Guess what? I don't earn more than £12,570 per year, so no income tax for me.

Then I use above board accounting to take rent and rate's, mileage allowance etc.. out of the business, tax free. The company pays 19% corporation tax on any profit, which I can take as a dividend with no further tax liability.

So my income tax per year is £0.00. What's yours?

Morals? The reason why I do this is, I disagree on what the government spends our tax money on, the less I can contribute, the better.

First and foremost ... US SS taxes start at $400 ... and it's 15% of earning up to ≈ $130,000 ... otherwise we have about the same "tax allowance" for income tax ...

Is £12,570 the normal annual salary for your profession? ... we can low-ball the IRS some, but the IRS will check your salary and it better be consistent with your market value ... if your skills command £500,000 per year on the open market, you're gonna pay income taxes on £500,000 per year ... no matter the loop-holds ...

How much of this tax savings are you channeling back to your MP? ... here in the USA, we kickback 10% to our congressmen ... for every million "donated", we get back 10 million in refundable tax credits ... why the United States is so great ...

Why are you paying the 19% corporation tax? ... how much do you pay on your 12,571st pound sterling in income tax? ... that's only 10% here in the USA ... for anything over $250,000, you should be incorporated in Liechtenstein or Monaco ... [giggle] ... or Turks and Caicos Islands ...

 

[Hutch Starskey]

Just thought people on this board had tax knowledge to pay very little.

You’re comparing incompatible systems and declaring yourself smart. Brilliant!

 

[Captain Caveman]

You’re comparing incompatible systems and declaring yourself smart. Brilliant!

You're welcome to point out where I said, "Smart".

Also brains, I didn't compare systems, I simply pointed out the UK system, thus paying zero tax. I did not highlight any part of America's tax system, and wondered what level of tax you guys paid.

But I do love your "smart" irony. Brilliant!

 

[Hutch Starskey]

You're welcome to point out where I said, "Smart".

Also brains, I didn't compare systems, I simply pointed out the UK system, thus paying zero tax. I did not highlight any part of America's tax system, and wondered what level of tax you guys paid.

But I do love your "smart" irony. Brilliant!

To an American audience. By default there is no comparison.
You’re also self employed. Again. No comparison.
Thirdly. It’s not great form to brag about tax evasion schemes as if it’s brilliant.
It sounds petty and greedy.

 

[Captain Caveman]

To an American audience. By default there is no comparison.
You’re also self employed. Again. No comparison.
Thirdly. It’s not great form to brag about tax evasion schemes as if it’s brilliant.
It sounds petty and greedy.

There's an old saying, "A fool and their money are soon parted". The more foolish you are, the more you lose in tax. All you need to do, is read up on tax ruled, simple as. Then follow the rules that allows you to pay less income tax.

There's nothing petty or greedy about it, the only pettiness comes from those that don't have the brains to gain a higher tax knowledge to reduce their tax. You have zero control where your tax dollars go, yet you feel a champion paying as much as you can. Bizarre.

You guys have US tax knowledge, your rich simply follow tax law, it's just that it's the tax rules that you've no knowledge of. That's your problem.

The number of people over here unaware of going Limited Company to slash their income tax and NI contributions must be immense.

 

[Hutch Starskey]

There's an old saying, "A fool and their money are soon parted". The more foolish you are, the more you lose in tax. All you need to do, is read up on tax ruled, simple as. Then follow the rules that allows you to pay less income tax.

There's nothing petty or greedy about it, the only pettiness comes from those that don't have the brains to gain a higher tax knowledge to reduce their tax. You have zero control where your tax dollars go, yet you feel a champion paying as much as you can. Bizarre.

You guys have US tax knowledge, your rich simply follow tax law, it's just that it's the tax rules that you've no knowledge of. That's your problem.

The number of people over here unaware of going Limited Company to slash their income tax and NI contributions must be immense.

You have no idea of either my knowledge or my tax exposure.
Wage earners income tax is taken directly from their earnings. There are very few ways for most to significantly reduce their tax burden.