Only the employed seem to pay tax?

[Taxevasion]

This is annoying me. Met a person recently that owns a lot of property (multi-million) that is let out in various ways but doesn’t pay any tax. Whatever they do is legal but the fact is they don’t pay tax so don’t contribute to the costs of running the country.

So am I being unreasonable in thinking this is very unfair? It seems that only those of us who are employed and pay tax paye fully contribute.

If they're letting out property and have an income from it then they should be paying income tax.

I'm retired, so not employed, and I pay tax on the income I have from letting out a house I own.

You're either misinformed about this person's financial situation or you're on a wind-up.

@RedToothBrush

What do you think fuel duty, stamp duty, alcohol duty, capital gains tax, council tax vat etc etc are?

They aren't immune from taxes. They still pay them in various different ways.

If you mean, why doesn't everyone pay a rate related directly to their net worth, thats a different question. If you mean, why are people able to get good accountant to minimise their tax liabilities. Thats also a different question.

But they do pay tax. Just not in a way you think is fair.

This

HMRC are getting MUCH more sophisticated with their ways of highlighting landlords that fail to declare rental income. They can detect this using details of who has registered onto a landlord deposit scheme and they also use deeds information, and have had a number of successful prosecutions.

I’m talking about income tax rather than all the other taxes. I didn’t misunderstand, the person told me they don’t pay any tax at all, I don’t have any reason not to believe them. They have an accountant etc. I just don’t think it’s fair

With rental properties I'm sure you are meant to pay some tax.

If the properties are held by limited companies he owns then they will be paying corporation tax.

Interesting.

How did you meet this person?

How did the subject of his/her property ownership come up?

How did their UK tax status come up?

I’m not stupid btw, as some of you have implied. I’ve just always worked in a ‘job’ where tax came off my salary. I pay a large amount of tax myself which is painful but I do believe in paying my due to benefit the whole of society.

@Taxevasion

I’m talking about income tax rather than all the other taxes. I didn’t misunderstand, the person told me they don’t pay any tax at all, I don’t have any reason not to believe them. They have an accountant etc. I just don’t think it’s fair

So they do pay tax then.

Many assets are taxed less than paid income and pension, though not zero.

They were complaining about an undesired outcome of not paying tax.

Yes as I said was talking about tax on their income not other taxes

“People who get income from assets or property pay less tax than those who rely on work”

www.theguardian.com/inequality/2019/sep/09/taxing-wealth-at-lower-rate-than-income-is-wrong-says-thinktank

@Taxevasion

I’m talking about income tax rather than all the other taxes. I didn’t misunderstand, the person told me they don’t pay any tax at all, I don’t have any reason not to believe them. They have an accountant etc. I just don’t think it’s fair

Unless you have seen his tax returns you don’t know if it’s true nor legal. Lots of people talk rubbish about their tax.

@thegcatsmother

My dh is retired and pays tax on his pension from his employment.

I had no idea you had to pay tax on a pension

So am I being unreasonable in thinking this is very unfair?

You are being unreasonable in thinking that this is true

You’re not wrong OP, PAYE people seem to spy more than most. Big business may not pay a lot of corporation tax but pays a fair whack in employers NI and other employee related taxes as well as VAT. Consumer pay VAT too. The biggest problem is with some traders and small businesses, they are pulling every dodgy trick in the book.

I have no reason to believe it isn’t true

Don’t be so childish, of course they pay tax.

They should. I work in ‘tax’ and completed returns for 4 customers today on their rental income.

Don’t be so rude @Aprilx.

They pay tax.

Don't worry about it. I am sure there is some misunderstanding because they will be paying tax on their income.

Or if they are not, they will soon be receiving a big bill and a prison sentence if they don't pay it

I'm employed and I don't pay income tax, only NI. I don't earn enough to pay income tax.

I have no reason to believe it isn’t true

People who understand the tax system have told you it's not legally possible to profit from being a landlord without paying tax.

That is a reason to believe it's not true.

We need to take some of the burden of tax on wages away and create a tax on assets.

In the US tax on property is considerably higher than the UK, and Switzerland has an asset tax, it is obviously workable in these capitalistic countries.