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Personal and Tax Planning
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Why do I pay so much tax?
We'll assume the question is rhetorical - but if you are serious, make an appointment to come in to the office to discuss your tax affairs.
Most people, if asked, would probably say that they think they pay too much tax. In fact, many do - either because their PAYE codes are wrong, or they are not claiming allowances or reliefs to which they are entitled, or because they are not getting proper advice on personal and business tax planning.
Just for the record, though, according to the Inland Revenue, receipts from the taxes they administered in 2003/04 totalled £151,284,000,000:
| Tax |
Receipts - £ billion |
% |
| Income Tax |
109,507 |
72.39 |
| Corporation tax |
29,320 |
19.38 |
| Capital gains tax |
1,596 |
1.05 |
| Inheritance tax |
2,354 |
1.56 |
| Stamp duties |
7,549 |
4.99 |
| Petroleum revenue tax |
958 |
0.63 |
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It is also interesting that according to the same source roughly 29,500,000 people paid income tax in 2003/04, of whom 5.3 million (18%) paid nearly 63% of the total and just 400,000 people (1.36%) had income of more than £100,000 and paid nearly 24% of the total, at £28,240,000.
At the other end of the scale, those with the smallest taxable incomes totalled 500,000 and paid only £10,000,000 of income tax - £20 a head!
The proportion of household income going on paying income tax has reportedly increased by an estimated 25% since May 1997, in part as a result of higher earnings bringing more people into the 40% tax bracket.
Our tax planning services will reduce your tax liabilities.
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