OK - what level of investment is required to create an interest received of >£1000pa
What level of investment is required to create an annual dividend in excess of £2000pa
I've ignored other tax allowances which could boost the levels of income from the above to make it easier for you to calculate.
On 30/01/2022 15:34, Tim Lamb wrote: <snip>
That's at best oversimplified. One of the problems with purchase tax was its cascade effect (in the absence of "input tax"). So e.g. vertically integrated by firms had a tax advantage over those that bought and sold along a chain.
And I don't understand what you could do with purchase tax you can't do with zero rating or exemptions in VAT.
100+ countries have adopted value-added taxes as both economically more neutral and harder to evade. The US is a big exception but IIRC that's mainly down to the sales taxes there being at State level and they don't want to give them up.
Well if you are in danger of income tax invest for capital gain as well.
And go abroad for a year when you sell.... :0-)
:-) I'm not an accountant.
Long while ago now, but I thought our version of sales tax was only applied to the end user. There is no benefit in applying it at intermediate stages as it would be claimed back as an input cost.
Nothing. But I don't see any cascading tax set up being simple to monitor.
My contact with VAT was in agriculture where most activities are zero rated. Endless aggressive accounting required for no benefit to the exchequer.
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It was only applied to retail sales. If it were applied at intermediate stages how would it differ from VAT?
I can remember, in the 1960s, buing some specailised brake linings from a motor factor (wholesaler) and they had to find the 'Purchase Tax Book'.
Lessee now. From the Beeb, this evening:
Quote:
An MP has said she is considering her future in the Labour Party after "obsessive harassment" from current and former party members. Canterbury MP Rosie Duffield claimed in a series of tweets that "personal, libellous, nasty" things had been published about her. "I have been subjected to this rubbish for years," she said, adding that the Labour Party had offered no support.
End quote.
So what "support" is even possible, bunches of flowers, a shrink with a couch to lie on ?
I'd be surprised if *any* MP on Twitter hadn't received lots of abusive tweets. Sadly, it's what happens on there. But not really surprising since the purpose of being on twitter for them is self promotion.
Notice you didn't comment on Nusrat Ghani. No surprise there.
Labour could make it clear that they'd expel any of the perps who are still members. Of course, that would bring the wokesters down on them like a ton of bricks. So "decisive" Starmer prefers to sit on the fence - an ultimately painful place, so they tell me.
Unlikely that any of the abusers would care or even be identifiable.
Hmm. I've been saving for my retirement.
In the last year I've had negligible interest, but inflation has eaten
5% of my savings. The only way to avoid that is to switch to higher risk investments.Can I have a tax rebate please?
I have a feeling that switching the system would make the accountants even fatter.
Andy
AOL. Why do they call it inflation when the purchasing value of the currency has gone down.
Don't you want to contribute to government extravagance? Mind, I don't suppose Dave's friends would have done much better:-)
Yes. I don't have any supportive evidence anyway. Just some vague recollection that they did away with PT because it was difficult to administer.
Depends on which "they" you have in mind :) The UK had to adopt VAT to join the EEC. The EEC harmonized on VAT after France used it as better (less distorting and harder to cheat) than its turnover tax; then Germany et al followed.
Does this mean we have a possible benefit from Brexit?
I vaguely thought Value Added Tax operated at each stage in a production process; raw material through to sales counter. Input/output tax at each step giving an audit trail.
It seems much simpler to put the full tax take at the point of sale and readily allows discrimination between luxuries and essentials.
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pass
that's right
But (a) if the tax is charged only at the last point then evasion at that last point means you lose everything[, (b) you need to say what you mean by "luxuries"[2] and (c) what rate(s) will yield as much as VAT - or where will you put up other taxes?
[1] e.g. back to 66% purchase tax on "expensive" cars?
Do you remember what goods were subject to PT? And what would you classify as an essential and a luxury?
In message snipped-for-privacy@davenoise.co.uk>, "Dave Plowman (News)" snipped-for-privacy@davenoise.co.uk> writes
I vaguely remember some dispute as to whether children's clothing should be included or not! Basic food excluded etc.
You could use all the unemployed accountants to argue for their particular *essential*:-)
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At each step, you pay VAT on your inputs which you then claim back when you sell the items. Since you have added value to the inputs by doing stuff to them, you charge more for the outputs than the inputs cost. The buyer of your outputs then has to pay a larger VAT bill, and if not the end customer then reclaims that VAT when they sell on. Only the end customer, usually the retail buyer, can't do this as they don't sell on. Hence the name of the tax.
Well quite, and it would save an army of accountants (with their added costs), an army of extra tax people (likewise), and forests of timber from being turned into paper.
Why is an audit-trail needed?
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