2 ms·

This is only true for people earning below a threshold - most professionals in the UK will need to file taxes That simply isn't true. An income of £80,000 puts

This is only true for people earning below a threshold - most professionals in the UK will need to file taxes That simply isn't true. An income of £80,000 puts you in the top 4% of adult earners. A salary of £100,000 is probably in the top 2 or 3%. This was discussed extensively at the last election when Labout proposed a new tax rate for people earning over £125k https://election2019.ifs.org.uk/article/labour-s-proposed-income-tax-rises-for-high-income-individuals https://election2019.ifs.org.uk/article/labour-s-proposed-in...

robertlagrant 5y ago
Worth noting that if someone is a contractor they'll need to file taxes, even if they pay themselves a lower wage (and thus wouldn't show up in the high earners stats). If they're an NHS doctor/nurse who also does some private work, same. Or anyone who has more than one employer, or is in the gig economy. It's not vast swathes of people, but I think it'd be more than 2 or 3%.
- tialaramex 5y ago
  No. I don't like paperwork. So, I don't do paperwork. It can be more tax efficient to file tax paperwork, but I don't want to do paperwork, so I just had an umbrella employ me when somebody insisted on hiring me as a "contractor" and the umbrella handled the paperwork for which of course they keep a fee. As far as the government is concerned I just had two PAYE employers, the umbrella and my "real" job. Having multiple employers also does not require filing taxes. One of the employers gets given a zero tax code and they tax all your pay at full rate, the other one gets a normal tax code which reflects your personal allowance and other considerations. My tax code was oscillating all over the place - but that's not a problem it's all automated. If you love paperwork you can choose to do all the paperwork. Or if you love money and don't hate paperwork maybe you can save a few hundred quid by filing and I hope it makes you happy. I hate paperwork, and I have plenty of money. So, no, despite earning a lot of money and having worked as a contractor I preferred to stick with PAYE.
  - robertlagrant 5y ago
    I don't think you need to love paperwork or money. Just employ an accountant for a few hours a year.
    - tialaramex 5y ago
      Filling out paperwork for the accountant to look at is still paperwork. The HMRC will take a fair cut of my gross income, which is fine, and then leave me alone whereas an accountant earns money by bothering me with more paperwork.
      - chrisseaton 5y ago
        The accountant fills out the paperwork for you. Accountants don’t bother you - once a year they ask you to sign your accounts.
      - robertlagrant 5y ago
        > The HMRC will take a fair cut of my gross income How do you know it's fair?

robertlagrant 5y ago

Worth noting that if someone is a contractor they'll need to file taxes, even if they pay themselves a lower wage (and thus wouldn't show up in the high earners stats). If they're an NHS doctor/nurse who also does some private work, same. Or anyone who has more than one employer, or is in the gig economy. It's not vast swathes of people, but I think it'd be more than 2 or 3%.

tialaramex 5y ago
No. I don't like paperwork. So, I don't do paperwork. It can be more tax efficient to file tax paperwork, but I don't want to do paperwork, so I just had an umbrella employ me when somebody insisted on hiring me as a "contractor" and the umbrella handled the paperwork for which of course they keep a fee. As far as the government is concerned I just had two PAYE employers, the umbrella and my "real" job. Having multiple employers also does not require filing taxes. One of the employers gets given a zero tax code and they tax all your pay at full rate, the other one gets a normal tax code which reflects your personal allowance and other considerations. My tax code was oscillating all over the place - but that's not a problem it's all automated. If you love paperwork you can choose to do all the paperwork. Or if you love money and don't hate paperwork maybe you can save a few hundred quid by filing and I hope it makes you happy. I hate paperwork, and I have plenty of money. So, no, despite earning a lot of money and having worked as a contractor I preferred to stick with PAYE.
- robertlagrant 5y ago
  I don't think you need to love paperwork or money. Just employ an accountant for a few hours a year.
  - tialaramex 5y ago
    Filling out paperwork for the accountant to look at is still paperwork. The HMRC will take a fair cut of my gross income, which is fine, and then leave me alone whereas an accountant earns money by bothering me with more paperwork.
    - chrisseaton 5y ago
      The accountant fills out the paperwork for you. Accountants don’t bother you - once a year they ask you to sign your accounts.
    - robertlagrant 5y ago
      > The HMRC will take a fair cut of my gross income How do you know it's fair?