Ron Hickman dies

[John Rumm]

He would have probably lost £2,940,000 in tax! (given it was probably during the 70's when the 98% tax rate applied to "unearned income" such as royalties from inventions etc).

[John Rumm]

IIRC he bought land and designed and built his own house with all sorts of "modern" ideas included in it.

[Roger Chapman]

I can't find a definitive date for when he sold the Workmate design to B & D but I think it could well have been in the mid - late 60s. The sale itself would have been subject to Capital Gains Tax at 30% maximum and quite possibly less.

I don't know for sure but I would have thought that royalties on an invention would be classed as earned income rather than unearned income. Hickman moved to Jersey in 1977 leaving behind a income tax regime that penalised just about everybody. Even us plebs had been paying a basic rate of 35% for the past two years and most would have left the country given half a chance. Higher rates went up to 83% on earned income and, as John has already pointed out, 98% on unearned income.

The Independent had a piece on Hickman on Saturday which gave him the credit for the earlier Elite as well as the Elan. Other sources suggest Hickman didn't join Lotus until 1958, the same year the Elite was launched, and Hickman's involvement with the Elite was production engineering rather than design.

Said other sources also give Hickman credit for the Plus 2 and the Europa in addition to the Elan and, on the Workmate, included this point:

"For the second Workmate prototype Ron used Elan wishbones on either side of the frame in a vertical position. Bet you didn?t know that the Lotus Elan and the B&D Workmate were ?related?."

I will now go out into the barn and kick the wheels of the old wreck that has resided thereabouts for the last 30 odd years just for old times sake. I wonder if Hickman's death will make defunct Lotuses a more saleable commodity. ;-)

[Dave Plowman (News)]

All that happened since is taxation was swopped from direct to indirect. Meaning the average to lower paid have more of an *overall* tax burden. Unless a hermit.

The majority really are rather clueless about how much of their money goes on tax - and seem to prefer indirect rather than direct. And that only favours the rich...

[djc]

True. And are two income households a cause or consequence of house-price inflation?

When I bought my flat in 1985 I had a 20% deposit and the mortgage was a little over twice my salary. I'm earning more now,but not that much more allowing for inflation; and even discounting the wilder fantasiesof estate agents the flat would probably sell for at least six times my present annual income.

[Roger Chapman]

You might think that but the way I see it is rather different.

A single man in 1975-76 on an income of £2380 would have paid 25% of his gross income in income tax but in 2011-12 his counterpart on an income of £23800 will only pay 13.7%. In order to up his tax burden to 25% (ignoring NIC and lower rate VAT) he will have to spend about 85% of his net income on goods that attract VAT at 20%. Given that food and Council tax alone are going to exceed 25% of his net income clearly that isn't possible and meanwhile 1976 man still had to pay 8% standard rate VAT and 25% higher rate VAT out of his net income.

I don't think that follows at all. It is just that those at the bottom of the heap have gained much less from the increase in GDP per head than those at the top. 15p off the basic rate is worth bugger all to someone on a really low income but over £5 grand to the higher rate whingers who are now carping about the much smaller losses they are now about to suffer.

It is the really rich who call the shots regardless of which party is in power. They don't put millions into party funds without the expectation of a quid pro quo or at least an Honour or two.

[Huge]

From the IFS;

"Although less than 12% of income taxpayers face the higher rate, that group pays a very large share of the total amount of income tax that is paid. Table 14 shows that the top 10% of income taxpayers now pay over half of all the income tax paid, and the top 1% pay 23% of all that is paid. These shares have risen substantially since 1978?79, despite reductions in the higher rates."

Sources: HM Revenue and Customs:

the table didn't paste very well...

[John Williamson]

I've seen here two almost identical houses on the same street with the mortgageable one selling for twice the price of the unmortgageable one. The only real difference I could find was a mine tunnel under the cheap one. The mine closed over thirty years ago, and the houses were 19th Century.

[The Other Mike]

The design of his house was the subject of (iirc) an Open University programme a few years back.

[Andy Champ]

I think a lot of people are pretty clueless about how much _other_ people pay too.

Take that rich man in his castle. He'll be paying 50% income tax, 2% employees NI, and 13.8% employers NI on practically every penny he earns (assuming the allowances are too small to make much difference!). so he gets about a third of what he costs his company.

One assumes he has a butler, gardener, and all that. So out of his income he then pays them. And that includes 13.8% employer's NI...

For next tax year the highest marginal tax rate will be 65.8%. And if you think it's fair to tax the rich - remember that unlike the rest of us, they can up sticks and leave, taking their money with them.

Andy

[Dave Plowman (News)]

If they really want to live elsewhere - let them go and good riddance. Anyone who thinks money the most important thing in life is best elsewhere.

[John Rumm]

Could be... I remember seeing something about having a split level lounge with some steps separating the levels. But then at the push of a button the steps rotated into a ramp to allow a drinks trolley etc to be rolled up or down.

[Donwill]

Have you requested details yet? O:-)

Don

[Huge]

That'll be all of the Treasury, then. And the Revenue & Customs. I'd quite like to see them go and live somewhere else - Neptune would be a good start.

[Huge]

No. I wouldn't live there even if I had the money.

[The Other Mike]

Neither would I, Bergerac showed it to be a place full of crime and crooks everywhere you turned.

[Derek G.]

And what a hell of a bastard place "elsewhere" would turn into.

Full of people like O, O, Antonio (Blair) + "£8k Hair Do" ( Cherie ).

2nd thoughts, you're right Dave. It's a really good idea.

Derek G

[Huge]

I meant the house, not Jersey. Although I doubt I would live on Jersey, either. Blanket 25mph speed limits? Naah.

[Roger Chapman]

The 2011 census is nearly upon us. In 2001 there was a campaign to record ones religion as 'Jedi'. How about this time around a concerted campaign to record ones religion as 'Speed'. Petrolheads of the world unite - you have nothing to lose bar your speed limits. ;-)

[Dave Plowman (News)]

Absolutely. And when he moved on to Midsomer, it's surprising they can still find enough residents to make a story about.