Tag Archives: tax

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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apple tax bombshell

30 Aug

london 10.29pm 20.4C dry tuesday 2016

for years, govts have seen multinational companies escape tax and put their profits off shore. ireland have been complicit in it, giving very low tax rates to entice companies to base themselves in ireland. the EU wants to make it play fair, and  level the playing field, by imposing what ireland should have collected from apple if they had not made sweetheart deals with it.

the other countries in the EU have lost out since they did not offer the same low rates and deals.

in the past the EU have forced ryanair to pay up, with its sweetheart deals with the european airports, so it is part of the clean up that the EU is doing as applied to the multinationals. they will be going for google and amazon next.

you would think usa and other countries would welcome this. usa in fact have the same gripe with apple and other usa companies shifting their offices off shore in tax havens and avoid paying USA taxes. they  should welcome this as it seems to be a winning front on the war against tax shelters which multicompanies can do to avoid paying tax. but USA will lose out if apple pays this euro13billion to ireland, as apple will surely  offset it against any tax that apple need to pay to the USA.

so it boils down to which govt gets the money… that is what they are fighting each other for. for years the EU have wanted to find ways to get the money from these multinationals who can trade freely in europe and not pay tax on their profits. that is what the internet makes it possible.

the EU must be looking at china and wish they could have their own firewall. haha. but short of having that, this way , taxing the profits in ireland is the next best way. ireland have made it possible for apple to avoid tax. and it hasn’t really made much money out of it either… the irish people might like to ask why the irish govt dont want this extra money… it is not even that apple is providing lots of employment in ireland. a lot of people dont like the EU for being very high handed, but i think what they are doing here is correct.  

Following an in-depth state aid investigation launched in June 2014, the European Commission has concluded that two tax rulings issued by Ireland to Apple have substantially and artificially lowered the tax paid by Apple in Ireland since 1991. The rulings endorsed a way to establish the taxable profits for two Irish incorporated companies of the Apple group (Apple Sales International and Apple Operations Europe), which did not correspond to economic reality: almost all sales profits recorded by the two companies were internally attributed to a “head office”. The Commission’s assessment showed that these “head offices” existed only on paper and could not have generated such profits. These profits allocated to the “head offices” were not subject to tax in any country under specific provisions of the Irish tax law, which are no longer in force. As a result of the allocation method endorsed in the tax rulings, Apple only paid an effective corporate tax rate that declined from 1% in 2003 to 0.005% in 2014 on the profits of Apple Sales International.