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Tax is mental...

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.

Reply 1

Andylol

14

Welcome to the world of business.

Reply 2

abcdefghijklmnopqrstuvwxyz

17

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

Reply 3

typiin

You could create the business in a tax haven?

Reply 4

Hugh-Jackman

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

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

Reply 5

Kyle_S-C

12

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.

Reply 6

robbo3045

17

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

VAT is 15%.

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.

Reply 9

34253

OP

2

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.

Reply 10

34253

OP

2

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.

Reply 11

imhiya

15

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.

Reply 12

34253

OP

2

imhiya

Become a drug dealer there tax = 0% :biggrin:

Well, it will be a bit hard to put in thousands of pounds each week without getting flagged lol.

Reply 13

Nick_000

16

Tax dodging is your friend.

Reply 14

Nick_000

16

Also, what business are you starting up?

Reply 15

34253

OP

2

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...

Reply 16

Unknown?

12

Welcome to the UK. Labour will probably raise taxes further to pay off this countries massive debt.

Reply 17

34253

OP

2

Nick_000

Also, what business are you starting up?

Selling a 'chemical' online and face to face.

Reply 18

imhiya

15

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.