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> Passive income is taxed at a much lower rate than working income in the U.K, and that includes property rents (after paying expenses like a managing agent) I
by yzydserd 2y ago
> Passive income is taxed at a much lower rate than working income in the U.K, and that includes property rents (after paying expenses like a managing agent)
Is that right? I thought that income from property rents (after paying expenses like a managing income) had income tax levied like any other income.
- chgs 2y agoBut honest day’s work income has an additional payroll tax which totals about 20% marginal for the majority of people (plot about 60/40 between employer and employee). Far better to be paid in shares.
- yzydserd 2y agoOh yes National Insurance Contributions. They’re a bit messed up imho. The employee pays 8% to NICS on earnings between 12.5 and 50k. For income over 50k, it’s 2%. The employer pays 13.8%, and some people assert the employee ultimately pays the cost through a lower salary.
- chgs 2y agoWell at my company it comes from the same budget. Doesn’t matter how you hide it.