If you make £60,000 per year as a contractor, then you could be paying more tax than someone who makes over £1,000,000 a year.
It’s just come to my attention that there is a scandal in the UK and it’s all about how some people, including contractors, are charged an “unfair” rate of tax.
Scandals are nothing new of course. You only have to read this blog on a weekly basis to hear stories of how the government and those in power are really messing around the average hard working man and woman on the street…and don’t get me started on those billionaire playboys who lounge around on their luxury yachts in the south of France.
Anyway, this latest story is all about how some self employed people are being charged 60% tax, despite the fact they make £60,000 a year. This is in contrast to many six figure earners and millionaires, who pay less tax at a rate of about 45%. Well they are supposed to, but some reports suggest many pay even less.
If you are paying 60% on a 60k salary then you are no doubt about ready to give up completely. You might as well just go and sign on down the local job centre, you would probably come away with more at the end of the year.
So why are some contractors and freelancers paying 60% tax anyway? While we won’t get into the specifics in this blog post, what I can tell you is that it has a lot to do with National Insurance Contributions and lack of tax free allowances and benefits.
It all gets a bit complicated, and that is why I advise anyone that is being taxed 60% to seek out a contractor accountant to look at your situation and advise you on the best way forward.
Why should those millionaires and billionaires be laughing all the way to the bank while you barely have anything to put in your bank? It’s the government taking all your money, while the super rich get away with it once again. Not anymore.
This gives you a chance to fight back and get your rate of taxation down to where it should be…around 40% for a contractor who makes £60,000 a year.
Don’t just take my word for it though, contact a contractor accountant right now and speak with an expert immediately. You will be glad you did.
A good contractor accountant will often pay for themselves with all the things they can do for your business. They are like magicians without the rabbit and hat, and they will never ask you to “pick a card, any card.”
Instead, it is straight to business with plain talking advice and a no-nonsense approach that is both refreshing and satisfying. Say goodbye to 60% tax and say hello to more money in your pocket.