Banksters Say Rich Pickins In London Offset 50% Tax

[Realistbear]

http://uk.finance.yahoo.com/news/Bankers-claim-London-tele-865096330.html;_ylt=AnvH_KYaF9JKYdcl54NQ7vXSr7FG;_ylu=X3oDMTE5dm9maDNkBHBvcwMxMARzZWMDeWZpVG9wU3RvcmllcwRzbGsDYmFua2Vyc2NsYWlt?x=0

Bankers claim London's advantages outweigh 50pc tax

Tim Flynn, chief executive of Haymarket Financial (HayFin) and a former Goldman Sachs (NYSE: GS - news) partner, said the 50pc higher rate of income tax was “just the cost of doing business in London” and was outweighed by the city’s many advantages.

“We could have set this business up anywhere in Europe (news) we looked at Switzerland and other countries and the tax regime would have been better for us as individuals. But we chose London because it is the financial centre of Europe,” Mr Flynn said.

“There are great schools, arts a

nd the legal regime for lenders is straightforward and well understood.

They were all factors that influenced our decision. Other cities just couldn’t compete.”

Spivs love fiddle city and the continuing lite touch regulation will ensure thy banksters will continue to ply their trade.

[@contradevian]

Spivs love fiddle city and the continuing lite touch regulation will ensure thy banksters will continue to ply their trade.

In other words our regulators are a soft touch and / or captured.

[Protect Rural England]

http://uk.finance.yahoo.com/news/Bankers-claim-London-tele-865096330.html;_ylt=AnvH_KYaF9JKYdcl54NQ7vXSr7FG;_ylu=X3oDMTE5dm9maDNkBHBvcwMxMARzZWMDeWZpVG9wU3RvcmllcwRzbGsDYmFua2Vyc2NsYWlt?x=0

Bankers claim London's advantages outweigh 50pc tax

Tim Flynn, chief executive of Haymarket Financial (HayFin) and a former Goldman Sachs (NYSE: GS - news) partner, said the 50pc higher rate of income tax was “just the cost of doing business in London” and was outweighed by the city’s many advantages.

“We could have set this business up anywhere in Europe (news) we looked at Switzerland and other countries and the tax regime would have been better for us as individuals. But we chose London because it is the financial centre of Europe,” Mr Flynn said.

“There are great schools, arts a

nd the legal regime for lenders is straightforward and well understood.

They were all factors that influenced our decision. Other cities just couldn’t compete.”

Spivs love fiddle city and the continuing lite touch regulation will ensure thy banksters will continue to ply their trade.

Realist Bear..............

Your fixation with the "lite touch regulation" knows no bounds.

Actually may I suggest a different "slant" on matters?

The 50% cost of doing business as individuals in London......Take Zug it is about 9-11%, Geneva about 42%.

The reality is that in Suisse there is little private accomodation left and what there is, very expensive. Schools there are bursting.

Take London: discount on office rents, plenty of cheap housing if earning in anything other than Sterling, plenty of school places, and this is the key.....pay yourself in the form of dividend rather than salary ......32% (and shortly to get cheaper).

So there you have it. Own the business and London is very attractive. Be an employee London is not a great deal.

As for the light touch regulation, I am not so sure. The honest, small, weaker businesses get pounced on by the FSA. The larger dodgy banks are given allowances for sure. T'was every thus in every facet of life.

Moral here...start your own business.

[porca misèria]

Realist Bear..............

Your fixation with the "lite touch regulation" knows no bounds.

Actually may I suggest a different "slant" on matters?

The 50% cost of doing business as individuals in London......Take Zug it is about 9-11%, Geneva about 42%.

The reality is that in Suisse there is little private accomodation left and what there is, very expensive. Schools there are bursting.

Take London: discount on office rents, plenty of cheap housing if earning in anything other than Sterling, plenty of school places, and this is the key.....pay yourself in the form of dividend rather than salary ......32% (and shortly to get cheaper).

So there you have it. Own the business and London is very attractive. Be an employee London is not a great deal.

As for the light touch regulation, I am not so sure. The honest, small, weaker businesses get pounced on by the FSA. The larger dodgy banks are given allowances for sure. T'was every thus in every facet of life.

Moral here...start your own business.

Erm, rather a lot that's wrong there. I won't argue London prices - I'll leave that to whomsoever can post a link to something meaningful. But you don't escape higher tax bands including 50% by taking dividends. The tax advantage is limited to the "national insurance" component, bringing "basic rate" tax down from 44% to 20% and a rather lesser reduction for higher-rate taxpayers.

[Protect Rural England]

Erm, rather a lot that's wrong there. I won't argue London prices - I'll leave that to whomsoever can post a link to something meaningful. But you don't escape higher tax bands including 50% by taking dividends. The tax advantage is limited to the "national insurance" component, bringing "basic rate" tax down from 44% to 20% and a rather lesser reduction for higher-rate taxpayers.

Please speak in English so mere mortals can understand.

You seem to be agreeing with me that paying yourself in the form of a dividend rather than regular income saves money (the NI Component) You seem to be saying there is a saving of 24% (44-20, but lower for higher rate payers)?

Doesn't seem much wrong with my viewpoint then. You are confirming what I am saying and indeed proving there is an even greater saving (for lower rate taxpayers).

Start your own business is the way forward or cut your own deal with the tax authoprities in Suisse. The more you earn the lower the rate, have your Suisse business in Geneva registered in Dubai and pay even less.

Being an employee is a mugs game

[frenchy]

you don't escape higher tax bands including 50% by taking dividends. The tax advantage is limited to the "national insurance" component, bringing "basic rate" tax down from 44% to 20% and a rather lesser reduction for higher-rate taxpayers.

that is true overall because the dividend (taken out of profits rather than turnover - as a salary would) has been taxed through corporation tax in the first place.

so if it is your own business you only save NICs but as an employee you do pay less tax, your employer pays the rest though...

[Mikhail Liebenstein]

In other words our regulators are a soft touch and / or captured.

Indeed, and besides given the particular variant of banking we have in the UK and NY US could be considered an illegal ponzi, its much safer to do such things over hear than it is in Beijing.Seriously in China Goodwin would have been executed no doubt about it.

[Peter Hun]

Please speak in English so mere mortals can understand.

You seem to be agreeing with me that paying yourself in the form of a dividend rather than regular income saves money (the NI Component) You seem to be saying there is a saving of 24% (44-20, but lower for higher rate payers)?

Doesn't seem much wrong with my viewpoint then. You are confirming what I am saying and indeed proving there is an even greater saving (for lower rate taxpayers).

Start your own business is the way forward or cut your own deal with the tax authoprities in Suisse. The more you earn the lower the rate, have your Suisse business in Geneva registered in Dubai and pay even less.

Being an employee is a mugs game

I take it you are an employee never left the comfy confines of the guaranteed pay check?

If you run a business like I do, not getting paid is a normal occurrence. By luck I survived two years with getting paid, my employee's did of course. I could have spent the last decade getting paid over a 100k per years, instead I have earned 20% of that.

[Protect Rural England]

I take it you are an employee never left the comfy confines of the guaranteed pay check?

If you run a business like I do, not getting paid is a normal occurrence. By luck I survived two years with getting paid, my employee's did of course. I could have spent the last decade getting paid over a 100k per years, instead I have earned 20% of that.

Sorry to hear all your hard work has not been as financially worthwhile as you might have hoped. Hopefully you will have a business you can sell for a lump sum?

[easy2012]

http://uk.finance.yahoo.com/news/Bankers-claim-London-tele-865096330.html;_ylt=AnvH_KYaF9JKYdcl54NQ7vXSr7FG;_ylu=X3oDMTE5dm9maDNkBHBvcwMxMARzZWMDeWZpVG9wU3RvcmllcwRzbGsDYmFua2Vyc2NsYWlt?x=0

Bankers claim London's advantages outweigh 50pc tax

Tim Flynn, chief executive of Haymarket Financial (HayFin) and a former Goldman Sachs (NYSE: GS - news) partner, said the 50pc higher rate of income tax was “just the cost of doing business in London” and was outweighed by the city’s many advantages.

“We could have set this business up anywhere in Europe (news) we looked at Switzerland and other countries and the tax regime would have been better for us as individuals. But we chose London because it is the financial centre of Europe,” Mr Flynn said.

“There are great schools, arts a

nd the legal regime for lenders is straightforward and well understood.

They were all factors that influenced our decision. Other cities just couldn’t compete.”

Spivs love fiddle city and the continuing lite touch regulation will ensure thy banksters will continue to ply their trade.

Think this is one of the banker who cannot move (due to family commitments, food, language etc), lots have gone to HK and SG and HK international schools are on long

waiting list.

[Peter Hun]

Sorry to hear all your hard work has not been as financially worthwhile as you might have hoped. Hopefully you will have a business you can sell for a lump sum?

12 years in, I'm getting paid on a regular basis. In theory a few years more should see a multi million price tag. By my calculation I'm getting paid now exactly (after inflation) the same as when I started my first job out of Polytechnic back in 1984. £25k then, £55K now.

But Its painful to watch my contemporaries sitting in million pound houses bought while working as risk free wage slaves.

Edited January 4, 2011 by Peter Hun