Can somebody cleverer than me (oh, that's anyone then) tell me my figures aren't even remotely right in this scenario please? They are all approximate but I *think* they are in the right ballpark?
I work as long as it takes for my employer to pay me £100 gross. Let's say I get taxed at 40%.
So I have £60 left.
National insurance takes 9% of my £100 as well.
I have £51 left.
I decide to fill my car up with it. And the tax man takes £40 of that.
So for every £100 I earn towards my fuelling my car, the Government gets £89 of it straight back again? Is that roughly right?
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sounds about right but dont forget the taxman generously lets you earn a full £3900 before he taxes you so thats very worthwhile isnt it.......gets me you pay your tax in january plus your class 4 national insurance and a week later you get another demand for class 2 insurance i asked to get off the merry go round but they said i couldnt............
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Err No
You dont get taxed at 40% on all your money. ONly that which is above the threshold.
So if you buy all your petrol at the start of the year where you are only being taxed at 20% of your
salary your petrol is cheaper!
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TourVanMan TM < Ex RF >
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unfortunately if he buys all his petrol at the beginning of the year it will have lost its do ron by november........
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hmm yes Good point Old Timer.
He needs a pre pay scheme where he buys it all up front, but leaves it in the garage tanks.
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TourVanMan TM < Ex RF >
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Sell your car Dipstick - it´s the only way. Makes you feel great, too.
~wanders off, grumbling~
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It all seems dangerously close to the point where HMG says "you've just earned your £100. We'll keep it all, you give us another tenner and we'll call it quits. Oh, and there's a processing fee of course. Plus VAT".
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If you are paying tax at 40% the National Insurance would only be £1, but it still leaves HMG taking £81 of your £100.
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I've got news for you dipstick. If your employer paid you £100 he probably paid around 10% Employers National insurance too.
You are now left with a pound.
And, please don't ask what happens, if like me, you charge someone £117.50 (including VAT of course) for doing a task of somesort - HMG gets £17.50 before I can even start on spending my £100.
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And if you turn toes up there'll be another 40% gone in IHT....
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You can't buy any petrol from January to June(?) because the gov takes all your salary in tax 'til then. After June you are tax free so should be able to buy some for your summer hols!
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Phil
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£61,250was £63,111Details
£15,234was £15,626Details
£19,995was £20,495Details
£22,500was £23,500Details
