tax free income

22 Nov

london 12.30pm 12.3C tuesday 2016 cloudy

in my previous post i was fantasising of a flat rate of tax of 15% for everyone, instead of just big businesses being given a corporation tax that may approach 15%. but i just saw an article that says u an earn up to £24,500 a year 2016-17 from exemptions that the govt has given. £27000 in 2017-18

claim your tax free allowance. £11,000

Basic rate tax payers can receive £1,000 of interest a year tax-free.

rent out a room £7500.

earn extra £1000 income. it can be just renting out your garage, or front garden as a parking space, or loft. 

dividend £5000

all figures are for a year.

that is interesting, dont you think? even if u discount the dividend income, and the interest, because not many of us have that many savings, or stocks and shares that will pay u that much a year, you still get about £20,000 tax free income. but call me sceptical, i dont think the taxman will let u get away with it. they will find something to make u ineligible to claim those exemptions. 

added 9.10pm 10C. viewing a tv program now, mary portas’ what britain earns. on channel 4. she says the average income in britain is £28,000. you have to pay tax of 20% on £17,000 of that. £3,400. and u are left with £24,600.

added.23.11.16. 10.08pm 10.1c dry wednesday 2016 . the chancellor have given his autumn statement and it seems he has removed that tax perk of the middle classes which allows them to take gym membership etc in liew of salary increases. i have read the article but it still is gobbledegook to me. haha. its so convoluted really. 

 

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2 Responses to “tax free income”

  1. Carl D'Agostino Tuesday November 22, 2016 at 1:17 pm #

    In US they have been “simplifying” the tax code frequently and expect a new wave of this proposed by Trump. What simplifying the tax code means is that lower income pay no federal tax on any income, welfare is not counted as income and they get $2,500 refund bonus per child under 18. The megacorps have so many loopholes available multi billion dollar companies can pay no federal tax. Simplification means the middle class gets crushed to pay for public welfare and corporate welfare. Every one gets to bleed the system on the back of working class people and with the exportation of US jobs that set of the population is evaporating.

    • alifesgayventure Tuesday November 22, 2016 at 1:43 pm #

      the tax man have always targetted the middle income group… they form the majority of tax payers. so that is not new. the very rich and the very poor are simply too difficult to pursue. the former because they can just move their money abroad.

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