The Rich According to the Guardian

[Judy1234]

www.guardian.co.uk/money/2008/aug/04/workandcareers.executivesalaries

The seriously wealthy may well be clueless about the amount of money on which the average UK family survives. But this thread just goes to prove that an awful lot of people are clueless about the UK taxation system. Income tax accounts for a very small proportion of exchequer receipts. It's just laughable that people think income tax is the be all and end all.

non-doms don't pay any tax on money they don't spend in the UK. Income tax is just part of it.

SMW, you clearly didn't understand any of the rules on British residents who declare themselves non-doms paying tax. But that didn't stop you wanting to defend Dittany's boss and insist you were right about his movements, and Dittany, who actually knew him, was wrong. I think it's interesting that you did that, and I do wonder why. Is it cos he is rich?
I have just read to my seven year old about Wat Tyler and the Peasant's Revolt. It's good reading. I recommend it.

MsDemeanor - I think you'll find there was more than one peasant.

Dittany - There are some firm rules as to when income tax applies and as to when corporation tax applies.

In the UK Corporation tax is over 20% against 12.5% in Ireland. Lots of companies are moving overseas for that reason. Business Property Relief reduced tax on business assets to 10% but silly old Gordon has attempted to penalise the very few venture capitalists (who actually generate a huge amount of wealth (and tax to the exchequer) in many ways) by complicating the our over-complicated tax system yet further. They will simply register their business activities overseas and pay that silly £29,000 non dom tax in order to carry on their lives as normal. Meaning the Exchequer will receive substantially less tax than before their tinkering. Sometimes you have to look at the bigger picture.

Back to the pedantic thread with you Swedes. I'm still right and quibbling about apostrophes doesn't change that.

there's one bit that's wrong there

non doms DO pay tax (the same taxes as we pay) on their UK earnings

Yes, far too subtle for me, of course, that's it. Nothing to do with the fact that you were completely wrong about non-doms when you kept insisting that people who lived in the UK couldn't possibly avoid tax here, eh? A hint for you. Next time, when you start asserting things as fact, do a quick Google first. You don't have to be subtle to try that. And it stops you looking a complete fool.

Bit in the Times about non doms passing off UK income as overseas here for the hard of Googling.
www.timesonline.co.uk/tol/money/tax/article3013608.ece

Also, if you are a non dom you can be born in the UK, live in the UK, buy extensive property/assets in the UK yet, as long as you byuy it using an offshore trust, you don't have to pay a penny tax on your profits when you sell them.

Bit harsh to Swedes here IMHO.

Non-doms as far as I am aware pay income tax on all earnings either earned in the UK or remitted to the UK.

Say you own a property in an overseas country. Would you expect to pay lots of income tax in that country? Even if you holiday there for a couple of months a year? I know I don't. I feel that by paying rates or the equivalent, I've made a fair contribution ...

yes but that's tax planning MsD. And as a matter of fact, all the non doms I work with declare their UK earnings and pay PAYE/NI on them as any non dom paid traditionally by a company would have to do. Those who can structure their earnings the way the Times outlines would probably be those with their own companies/investments and the like.

Depends what you call bringing income into the country. Most of us would think they would do that when they, say, buy their houses. But they don't. They buy them via their offshore trusts and they 'belong' to those offshore trusts. They pay school fees via their offshore trusts...ad infinitum.
It is grand scale tax avoidance, which the poorest people cannot possibly avail themselves of, yet some people apparently think it is perfectly fair and OK. Odd.

No, if I owned a holiday cottage in France I wouldn't expect to pay income tax there. If, however, I lived in France, worked in france and sent my kids to school in France, not only would I expect to pay all French taxes, but I would HAVE to pay all French taxes. It would, quite rightly, be the law.

it's perfectly legal

it's just tax planning

you are telling me that if you had the chance or option to pay less tax that you wouldn't take it?

I think benefits cheats are just as much scum as any other kind of cheat. The scale isnt really the issue, it's the principle of the matter. Someone who fraudulently claims benefits is screwing the honest taxpayer and deserves everything they get.