Hey there! Sign in to join this conversationNew here? Join for free
    • Thread Starter
    Offline

    0
    ReputationRep:
    I am in the process of starting up a business, here is just a quick summary of all the tax I will be paying:

    Import tax: 22.5%
    VAT: 17.5%
    Corporation Tax: 30-40%
    Income Tax: 20-50%
    NI: 11%

    How ridiculous is that? I am paying tax on the same product like 4-5 times... the government really screws you from every angle.
    Offline

    13
    ReputationRep:
    Welcome to the world of business.
    Offline

    14
    ReputationRep:
    i hope you know income tax is based on brackets which might soften the blow a bit XD

    Also i don't think you pay corporation tax unless you are a big business but my GCSE business studies has just gone
    Offline

    0
    ReputationRep:
    You could create the business in a tax haven?
    Offline

    0
    ReputationRep:
    welcome to the UK more like, we're particularly taxing.

    get yourself a good accountant and you can pay a lot less tax.
    Offline

    12
    ReputationRep:
    You might be eligible for tax credit or discounts though. They offer a lot of incentives to get small businesses off the ground. I don't imagine that big companies would ever operate out of Britain if it were so unfavourable.
    Ask Business Link or someone similar for advice.
    Offline

    4
    ReputationRep:
    I love when people's realization of life comes to fruition and they post it on here.
    Offline

    14
    ReputationRep:
    VAT is 15%.
    Offline

    2
    ReputationRep:
    (Original post by Elipsis)
    Corporation Tax: 30-40%
    I'd love to know where you got that figure from. It's between 21% and 28%. You'll most likely be on 21% because you'll be earning less than £300,000 taxable profit.
    • Thread Starter
    Offline

    0
    ReputationRep:
    I don't think they will be willing to help me start up this business. It's basically just selling legal highs... I was under the impression corporation tax was higher than 21-28%. How do they justify taxing the businesses profits and then taxing wages? 99p in a £ must go through the treasury.
    • Thread Starter
    Offline

    0
    ReputationRep:
    (Original post by typiin)
    You could create the business in a tax haven?
    Might be a bit hard to operate? My friend is a tax law expert so hopefully we should be able to do our fairshare of dodging together.
    Offline

    2
    ReputationRep:
    (Original post by electriic_ink)
    VAT is 15%.
    you don't have to pay vat though do you? don't you get the vat from your expenses just to save hassle. then pay the difference.
    • Thread Starter
    Offline

    0
    ReputationRep:
    (Original post by imhiya)
    Become a drug dealer there tax = 0%
    Well, it will be a bit hard to put in thousands of pounds each week without getting flagged lol.
    Offline

    15
    ReputationRep:
    Tax dodging is your friend.
    Offline

    15
    ReputationRep:
    Also, what business are you starting up?
    • Thread Starter
    Offline

    0
    ReputationRep:
    (Original post by imhiya)
    you don't have to pay vat though do you? don't you get the vat from your expenses just to save hassle. then pay the difference.
    The point was that by the time someone buys my product the price has been artificially inflated by over 100% if I don't want to take a hit to my profits. That's before you factor in that their pay has been taxed as well...
    Offline

    0
    ReputationRep:
    Welcome to the UK. Labour will probably raise taxes further to pay off this countries massive debt.
    • Thread Starter
    Offline

    0
    ReputationRep:
    (Original post by Nick_000)
    Also, what business are you starting up?
    Selling a 'chemical' online and face to face.
    Offline

    2
    ReputationRep:
    (Original post by Elipsis)
    The point was that by the time someone buys my product the price has been artificially inflated by over 100% if I don't want to take a hit to my profits. That's before you factor in that their pay has been taxed as well...
    Well what type of business is it? just red above, but you will be buying the "chemical" in bulk im guessing which would be for example 20p a pop, then you sell it for like £2. its surprislying cheap through wholesale.
    Offline

    0
    ReputationRep:
    (Original post by imhiya)
    you don't have to pay vat though do you? don't you get the vat from your expenses just to save hassle. then pay the difference.
    Well if your sales are more than your expenses you have to pay VAT.
 
 
 
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • Poll
    Would you like to hibernate through the winter months?
    Useful resources
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

    Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

    Quick reply
    Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.