A SUGGESTION from the Archbishop of Canterbury, Justin Welby, that wealthy families should pay more tax to help the poor are no doubt well-meaning – in a Robin Hood sort of way. His comments come in a new report he has co-written that declares Britain’s economy to be “broken”. Key proposals include: Higher capital gains tax and taxes on dividends, netting up to £27billion a year; a £13billion-a-year corporation tax hike; and the creation of a £186billion Citizens Wealth Fund by 2030, by increasing tax for people like you and me. The report also calls for inheritance tax to be replaced by a limited “gifts tax”. So rather than inheriting your parents’ house when they are dead, they can only give you a maximum of £125,000 over their lifetime — and nothing tax-free when they are dead. Which seems bonkers to me. I have two major problems with the Archbishop speaking out on this matter. The first is that he is … [Read more...] about It’s not Archbishop of Canterbury Justin Welby’s job to get involved with politics — stop ‘picking our pockets’ and make Church pay tax
Why pay taxes
When Julia* arrived in Germany from Poland, she declared on her registration form (Anmeldungsformular) that she didn’t have a religion. Like so many lapsed Catholics, Julia was baptized as a baby but hasn’t been to church in years. “I don’t identify with any church, so I answered this registration form question with total honesty,” says Julia. Unfortunately for her, “lapsed” or “non-practicing” aren’t words that the German tax authorities understand. Unless you have formally disavowed your faith in Germany, you are still considered religious. And if you are still religious, you have to pay church tax. Today Julia lives in limbo, not paying any church tax but still technically a member of the Catholic Church. She is worried that the authorities might catch her out and demand a whopping back payment. What is church tax? Church tax, or Kirchensteuer, is a tax that religious communities charge their members to finance their … [Read more...] about Crossed wires: why church tax is causing extra stress for expat tax payers
PUBLISHED: 12:00 21 July 2018 | UPDATED: 12:34 21 July 2018 Carl Lamb, managing director of Almary Green Picture: Almary Green Archant Financial advisory firm Almary Green explains when and why some pensions are taxable. Q: I’m due to retire early next year and should get a full state pension as I’ve been working all my life. I’ve been working for the local district council for about 25 years so will get a decent pension from their pension fund too. I thought that when I retire I won’t have to pay tax but a friend who has retired recently tells me she is paying tax on her pension. Is that right?A: Yes, that’s correct. When you reach state retirement age, you stop paying National Insurance even if you are still working (unless you are self-employed paying Class 4 contributions) but you will pay income tax if your income is more than your Personal Allowance.The Personal Allowance for this tax year (April 6 2018 to April 5 2019) is £11,850 (provided … [Read more...] about Ask the Expert: Will I have to pay tax on my pension?
Inheritance tax should be scrapped and completely replaced, a major think tank warns today. The Resolution Foundation says death duty is the "least fair tax" of any in the country. Here's why. Currently inheritance tax is charged on someone's entire estate after they die. Their descendants must fork out 40% of the entire value of the estate over a certain threshold, currently £850,000 for couples including property. But in a new report today, the Resolution Foundation says just 4% of estates are currently subject to it. Meanwhile the very richest, with legal advisors, can get away with paying less than they could by using a maze of loopholes. Those include handing wealth to children more than seven years before death and tying it up in business and agricultural land, which carry special relief rates. What's worse, people only tend to get their inheritance at an average age of 61 - after it would've been useful to buy a house or raise kids. So the think tank has come up with a … [Read more...] about Why inheritance tax ‘should be scrapped and completely replaced’
"Do people want to pay tax? What does this depend on, and what is their behavior in reality? We want to better understand how to influence this behavior, and what the attitude [towards taxes] is, how it might change, and why," MTA's director-general, Valdur Laid, told the paper.According to Laid, Finland has already done such a study with the result that 95 percent of Finns agreed that paying tax is one of a citizen's main obligations towards the state."This doesn't mean that everybody is really keen to pay tax. Everybody wants to maximize their own well-being. But there is an understanding of what they get in return," Laid said.In his assessment, the willingness of Estonia's residents to pay tax has recently decreased. Looking at how fiercely this is debated in society, for example regarding the tax package of the government, including the revision of the tax-free income limits among other things, talking to people in business, and seeing how the issue of income tax reform is treated … [Read more...] about Tax and Customs Board to survey Estonians’ attitude towards paying tax