How Much Income Tax Do You REALLY Pay? (UK Taxes Explained) 

Not sure why we all have beef with this , somebody has to pay for the 100 billion welfare we pay out each year . Yep over 100 billion , let that sink in . (Haven’t included government pensions ).

FAILURE to force MULTI NATIONALS to cough up pain of removal of licenses.. Amazon Costa Intel E.T.C have left the high street uncompetitive.. You are paying THEIR taxes….

Somebody pretending to be you just sent spam to me with a WhatsApp number. Been happening a lot lately.

innit though

And inflation of 20% on it all!

Yep, good point, not to forget capital gains and inheritance tax.

Probably when all's done, you only spend 3% the rest is all tax. Don't forget your carbon credits.

Correct, and these are taxes from your NET pay, which is even worse..

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It upsets me how simple things like this are not taught in school, and then people complain about taxing the rich everyday, as though the rich should pay for their own ignorance. I have been doing the same thing myself, using the market to shield myself from the market. But I hate making mundane decisions, so I just invest through an advisor, making good profits, avoiding taxes, while doing very little work

So you’re simply not paying capital gains tax. Tax dodgers are just impoverishing everyone who is on PAYE

Literally every industry complains about vat screwing them over. It's purposefully designed so mega corporations can pay no tax while medium business gets rekt regardless of what sector you are in. It's trying to force you to over expand or grow too fast to prevent you from becoming competition for existing corporations.

You don't collect enough VAT from your member subscriptions?

@@jamiewalkerdine3705 who said anything about propping up? If an individual puts their neck on the line and creates jobs, there should be an incentive. But there isn’t. SME are the back bone of the economy. They should be protected not rinsed.

@Don Secco that’s the biggie. They are stealing from us by stealth!

@Kurt Gencheff Yes I think it came out at 80% tax or something!

100%! Council Tax, VAT etc!

Apparently it is on average 95% if you include VAT, duties, council tax, employer's taxes, etc. You only get 5p for every pound earned.

Yes please do

Fuck that. Tax needs to go up. I’d rather pay tax than extortionate costs of everyday life where is no subsidy. Only winner in this game where you slash taxed will be the rich

@@Speedkam Well no... because it depends what you want. Otherwise, your argument could be stretched to why not pay 100% tax and let the government decide what is most cost effective for it's citizens to eat.

Stating the tax rate is totally misleading. If you earn £125k (which lets face it isn’t many people) you pay 42k in income tax and 6K in NI, making about 38% overall.

Vote reform 😊

if you wanna live on a farm, don't expect rights@@Speedkam

This is why those who don't pay council tax, (probably as they are two people already paying) should pay via the Tax system. Landlords should be required to declare the number of people living and registered at a property.

@@jamiewalkerdine3705 he said it was like that for years so why are you justifying this with inflation.

You can aviod all this tax if you are willing/have ability to contribute to your SIPP

Yeah we hear so much about the 45% rate but the 60% stealth rate is hardly ever mentioned by anyone. And with fiscal drag its catching more and more people every year.

And now 53% is about to become 54%! Glory Scotland eh.

It's done that way to keep the scum as scum! I work a minimum wage job for government no point me trying to take courses and raise my wage at all...

silence goy

No stay. Cease productivity. Starve the fat cats. And then we build back once the rats have fled. Time to get this nation back. One small step at a time. The free loaders and greedy pocket fillers will vanish once they feel like there's nothing left to bleed. I'm Yorkshire through and through. 2nd generation miners strikes. You stay, you grit through, you refuse their tyranny, and put the tools down. War of attrition. We're used to having nothing in the North. London insists on keeping this class war running. With this many people disgruntled, it's the best chance we have of forcing the elitest, victorian scum into submission. They'll never break the Northern spirit. I don't need money when we have the hills and I'll die and starve out of sheer stubborness. This nation needs to remember what "stiff upper lip" means!

SHUT IT DOWN @@shabbos-goy9407

and the more they borrow, the more of those taxes raised they do not even get to spend as a larger percentage of the taxes overtime go to service the debt. Currently over 10% of government revenue goes to that, more than 110bn a year.

Wars are not cheap

Then add stealth taxes, speed cameras / bus lane fines / parking tickets / late payment fines etc...

not to mention inflation stealing your purchasing power

@Western Propaganda Yes but making more money with no economic stability to back it up is good for nobody. Money used to be linked to gold but no longer. If more money was printed out of thin air and let it loose amongst the general public, supplies may not be able to keep up because people would have the means of buying more than they need. What would happen is that prices would have rise in order to control the flow of supplies to keep ahead of demand so inflation would have to occur because when the amount of money outruns the demand for it, it becomes less valuable. So less buying power to maintain control of supply infrastructres. Yes they can make more money if they wanted to as gold is no longer linked to money, but where they going to put it? Not in their pockets or ours, that would be stealing from the state or giving us the means to cause chaos as described above and eventually cause issues in supplies. They'd have to put it into circulation for the economy but money will still end up to be less valuable as the supply of money would be greater than the demand and we'll still be taxed to death. Could say taxation is legal theft so they can get a lot of that magic thin air money that was printed but in the long run, printing more than is in demand will benefit nobody. I get what you're saying, it would be great if money was never ever an issue but it'll never happen. Say one day, automation has taken over many primary and secondary industries and people are almost exclusively doing things like programming, medicine, egineering innovation, cyber security or basically anything that brings almost everyone into an environment that is today much higher paying, those kinds of jobs will become less valuable as almost everyone will be doing those jobs and people would still have to compete for the higher paying jobs in that situation. We might be happier because less manual labour, but the money wouldn't be as good.

They use the money for spectacular fireworks on NYE ☠️

If there is anyone who has decided to not bother, they are mugs as they have less money in their pockets. Loser attitude.

You mean tax is high as we have to.pay for lazy people

@@SK-kh2rs Lazy government"

@@SK-kh2rs We’re taxed on everything and would be if the whole nation was working, we pay for the ambitions of those in government and people on benefits get the left overs.

@@SK-kh2rs Just been reminded where I have heard this argument before, watching ‘A Christmas Carol’.

TV tax and road tax

It’s only a tax if it’s compulsory. If you decide to go to university who do you expect to pay for it?

​@@lesleywillis6177 The problem with a student loan is 1/2 the people are never expected to pay it back. It's effectively a tax on those who do pay it back. A bit like John is paying for his and Tom's since Tom won't pay it back.

@@CaptainOgres there is interest on that loan. Buy waiting until its written off u may end up paying way Korea in the long run vs. Overpaying it.

@@lesleywillis6177 for middle to low income households, it’s the only way for them to attend university and improve their lives. So even if it isn’t compulsory, really for vast majority of students it is compulsory.

@@asfand5747 I am from a council estate, I didn't go to university but I can assure you we live very well. It's up to the individual to solve their problems.

We should pay VAT on junk food

Most pay less than £10 monthly

@@SK-kh2rs how can it be possible?

@@jamiewalkerdine3705 Incorrect. Taxes are indeed one of the main forms of government revenue and the government has a finite budget of how much it can spend without getting into further difficulties in future years (by having to raise more and more to service it's existing debt). The government does not "print" money in this mythical fashion, it can sell bonds with a promise to pay a set interest rate in the future, but these bonds are then purchased by the bank of england or by private investors or institutions with the expectation of them making a profit. The government is still, in it's own way, limited to the budgetary constraints of private households even if it has different levers available to raise funds.

@@jamiewalkerdine3705 I've been thinking about this myself, and I agree with you. Government can effectively just print money to finance large infrastructure projects. There will obviously be an inflationary effect of this strategy, but large infrastructure projects will also increase GDP (in theory at least) which will offset the inflation somewhat. In a fiat system, the worth of your money supply is backed up by your GDP, rather than gold as in the past. Effectively, this means that tax is not necessary to fund infrastructure, as surely if the cost of a project is greater than the economic benefit, then it should not go ahead. However, tax plays a useful role in guarding against poor estimates of future value. For example, an infrastructure project (say HS2) is funded through taxpayer money, for a total of £100B. Once it's built, if it turns out to only create an economic benefit of £90B, then we are not left in the uncomfortable position of being in debt. Conversely, if it turns out to create a benefit of £110B, then it will create a deflationary pressure on the currency, which will have to be offset through money printing. If you were instead to issue new currency to fund infrastructure projects, tax would still be useful. Assuming that we are reasonably accurate in estimating future value, we will need tools to create both inflation and deflation to meet our targets. Issuing excess money is a tool to create inflation, while taxes could be used to create deflation. However, rather than using the taxes to fund infrastructure, the money would instead be removed from circulation. These are my thoughts. I only did economics as a supplementary part of my engineering degree, so somebody who actually studied it could probably expand on this, or tell me why it's rubbish.

And it also shows that the high earners do actually pay!

I suspect a lot of those high earners are landlords and if we were being honest it is their tennants that are paying the tax, tho I could be wrong? I don't have numbers to back this up.

@@arkatub You think landlords don't pay income tax on the rent?

but boat people need your money /sarc

THis is all to stop the dividend loophole I think in a short time Salary will be the way Directors are paid The loophole is closeing make the most of it directors could see 70% taxation of dividends inc corp tax 45% plus 25% Corp tax is 70%

I would be

I think it is 76% as 60% income tax 13 odd % for employer NI contribution and 3% for employee NI contribution.

@@vaibhavaggarwal5300 i think it is 13% employer NI plus 1% apprenticeship levy. So if you make £100 with a day rate at this marginal rate you lose £14, so £86 - then you take 60% plus 2% employee NI - which is then £32.68 take home from £100 - or 68% tax. This is on day rate "inside IR35" income between £100-125k As other have mentioned if you happen to be a graduate, you would also lose a further 9% which would leave £29.73 or over 70% tax

There are over 10 million people on the states payroll in the UK. Crazy.

Must be fun to fly abroad every day

@@truth.speaker it’s just a job. A pretty cool job, with the best view of any office - but it’s still just there to provide a living and pay the mortgage.

@@phil_nicholls yep. But if your job let you fly abroad every day that's special They must be making a lot

IR35 literally makes it impossible to freelance in the UK, we are prisoners.

yep this'd be a good addition to a great video

pension aswell. many countries covers old people regardless of contributions.

That, combined with the average price of a house being around £300k, will ensure that the only way young people will be able to afford a house is being born to rich and generous parents.

a loan is not a tax, its a loan,

@@jamiebanyard1792 in most countries university either costs about what a student would earn off a couple of hours work a week, or is completely free. Universities make most their income from research. In the UK it is a tax.

You're right the FULL TAX (or PARASITE) BURDEN includes all the above for the individual (add in various taxes on housing including Inheritance, Stamp Duty, Capital Gains etc. All the VAT is huge every day. I think that's a much more serious problem than the ways anyone who can make money work for them uses those ways to avoid paying tax. The only difference is these people have a way to avoid it while most people are SLAVES to TAX and have no say on it or way to avoid being parasitized by the government. Tax used to be to give from those in society who did well to help compensate the those who did less well and keep everyone in society relatively happy. Except here's the big change: In UK today NO-ONE cares about ANYONE ELSE because everyone is different: Few people live in coherent societies, it's atomized and as such tax is just a burden with no benefit to individuals because it's not going to their own "communities". There's no such thing. The government spends other peoples money on all sorts of utter wasteful BS creating National Debt and Deficit Spending vs Revenue (from taxes!).

Yup, why are we destroying ourselves? Disgusting

10 million extra people in 10 years has crippled public services.

@@ApexCypher_ and old people living forever

@@SK-kh2rs Great point 👍

It's not a tax. You named it already, it's a loan. It was nice to spend the money now you need to pay it back. Have you ever had a money to spend from the tax you pay? It's two different things. The fact someone is low erner only works in his favour here, because you will never repay everything you have borrowed your loan will expire before you pay it back in full. But yea lets complain about another evil tax.

@@pistopit7142 It's call student loan but its repaid as a tax at 9%. Martin Lewis has said this for years.

@@garycroft8213 ah yes, If Martin said that then it's a tax not a loan

@@pistopit7142 its a tax because its taken from income at a specific level @9% - it should be called a graduate tax, that would be more accurate.

you can own ferrari through your own company and the costs/depreciation becomes tax deductible

@@rufusli7056 what about benefit in kind charges?

@@rufusli7056 Only if you only use it for company use and not personal use, legally.

Yeah tbh it was a good deal at a 10% flat rate. Not they split it take 20% here, 15% there. Then when you add it up it's 60%