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Joey122

Why Income Tax Is Not As Bad As People Think (and Housing Tax Is)!

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I hand out on this website quite a lot and its full of interesting topics.

Lots of people here think it is unfair that house buyers (BTL) dont pay tax on their property interest but income tax is taxed and therefore this is unfair.

For a while now I have been taking anything over 40K as salary and putting it straight into my pension.

That way I pay 0% tax on my income and Mr Darling can stick it where the sun doesnt shine.

I m surprised everyone does not do that - Its the way to go

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That's fine.

I understand your reasoning, but you are trapping you money within reach of every future chancellor looking for a sub. If you trust this government, and the next and the next then you are making a very smart move.

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That's fine.

I understand your reasoning, but you are trapping you money within reach of every future chancellor looking for a sub. If you trust this government, and the next and the next then you are making a very smart move.

Trust this gov, never mind the next 20 or 30 yrs, don t do it, look out for number 1, all the best, Alan

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I hand out on this website quite a lot and its full of interesting topics.

Lots of people here think it is unfair that house buyers (BTL) dont pay tax on their property interest but income tax is taxed and therefore this is unfair.

For a while now I have been taking anything over 40K as salary and putting it straight into my pension.

That way I pay 0% tax on my income and Mr Darling can stick it where the sun doesnt shine.

I m surprised everyone does not do that - Its the way to go

this might seem like a stupid question - but do you claim the tax back - or do you just put money into the pension instead of putting it into tax

Thats what confuses me about pensions

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I hand out on this website quite a lot and its full of interesting topics.

Lots of people here think it is unfair that house buyers (BTL) dont pay tax on their property interest but income tax is taxed and therefore this is unfair.

For a while now I have been taking anything over 40K as salary and putting it straight into my pension.

That way I pay 0% tax on my income and Mr Darling can stick it where the sun doesnt shine.

I m surprised everyone does not do that - Its the way to go

That's fine, but most people don't earn over £40k. The message to them is that it makes more sense to speculate than it does to work hard, and that attitude is not going to build a successful economy in the face of rising competition from very hard working and productive emerging economies in the far east.

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That's fine.

I understand your reasoning, but you are trapping you money within reach of every future chancellor looking for a sub. If you trust this government, and the next and the next then you are making a very smart move.

You're also trusting that the financial institution involved will be solvent when your pension is due, and you're locking yourself into spending a chunk of your 'savings' on an annuity to be paid at whatever rate they deem appropriate at the time.

I use quote marks above because it's not really savings IMO, if you're restricted in how you're allowed to spend it.

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I hand out on this website quite a lot and its full of interesting topics.

Lots of people here think it is unfair that house buyers (BTL) dont pay tax on their property interest but income tax is taxed and therefore this is unfair.

For a while now I have been taking anything over 40K as salary and putting it straight into my pension.

That way I pay 0% tax on my income and Mr Darling can stick it where the sun doesnt shine.

I m surprised everyone does not do that - Its the way to go

You're nuts. You'll never see that money again.

You might as well take all your money out in five pound note and set fire to them. At least that way you'll get some heat out of them!

A bird in hand is worth 10,000 in a 'pension fund'.

Also note that although you pay 0% tax when you put the money into the fund, you still have to pay tax on it when you take it out. And by the time you take it out there will have been so much fiscal drag that anyone with a pulse will ne paying 40% income tax. You might even end up paying 50%

I'm surprised anyone does that. It's the way to old age poverty.

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You're nuts. You'll never see that money again.

You might as well take all your money out in five pound note and set fire to them. At least that way you'll get some heat out of them!

A bird in hand is worth 10,000 in a 'pension fund'.

Also note that although you pay 0% tax when you put the money into the fund, you still have to pay tax on it when you take it out. And by the time you take it out there will have been so much fiscal drag that anyone with a pulse will ne paying 40% income tax. You might even end up paying 50%

I'm surprised anyone does that. It's the way to old age poverty.

Can you exactly quantify why I am nuts? It saves 40% on the way in , and on the way out after growth will probably be subject to 20% tax.

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I hand out on this website quite a lot and its full of interesting topics.

Lots of people here think it is unfair that house buyers (BTL) dont pay tax on their property interest but income tax is taxed and therefore this is unfair.

For a while now I have been taking anything over 40K as salary and putting it straight into my pension.

That way I pay 0% tax on my income and Mr Darling can stick it where the sun doesnt shine.

I m surprised everyone does not do that - Its the way to go

you cover different points in your post

- should there be tax reliefe on BTL loans?

- is income tax unfair?

- are pensions a good thing?

all should be looked at separately

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Can you exactly quantify why I am nuts? It saves 40% on the way in , and on the way out after growth will probably be subject to 20% tax.

Assuming the pension fund doesn't go bankrupt or get legislated out of existence, I think your assumption you will be paying 20% tax on the way out may be somewhat optimistic...

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Can you exactly quantify why I am nuts? It saves 40% on the way in , and on the way out after growth will probably be subject to 20% tax.

That's a big if. If fiscal drag continues on its present course then you'll almost certainly get taxed at 40%.

You're putting your trust that Gov't after Gov't after Gov't will not change the tax laws and fvck you over. The British Gov't's tract record is not good in this regard.

You're also trusting that the financial institution in which you place you 'savings' will remain solvent. And that the won't apply penalty charges like Equitable life did. And that they won't suddenly one day revalue one of their funds 7% lower as Standard Life recently did. Or that they won't halt withdrawals like numerous property funds have recently done. Or be forced to liquidated as many Hedge Funds have had to do recently.

Financial Institutions are going bust right left and centre at the moment. Default rates in any debt market you care to mention are at multi-generational highs (the highest since the 1930s) and are still getting worse. Now is not a good time to be handing over your life savings to a financial institution period.

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  • 296 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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