Tax man take all your money?

Question

My friend earned £3800 last month but the tax man took £1000 of it away, does this seem wrong?

Answer 1

Here is a list of tax free havens. Your friend can always retain his British overseas citizenship even when he has another passport.

http://en.wikipedia.org/wiki/Tax_haven

Andorra: No personal income tax

PS: Ironically, Britain is a great tax haven for non-UK citizens

Bahamas: No tax

Bermuda: No tax on foreign earnings

Bulgaria: 10% flat tax only

Dubai: No tax

Hong Kong: No tax

Mauritius: No tax

Seychelles: No tax

Russia: 11% tax (I am not sure if your friend would want to move there except for Russian women, maybe)

As long as he is out of the EU, he would have no tax liabilities in the UK. The catch is he should be in a profession which pays well in the concerned country. For example, Mauritius and Seychelles have an amazing hospitality and tourism sector which pays high dollar income for expats and an amazing, seaside lifestyle. What is not there to lose.

Answer 2

That's about right. It only works out at about 26% so hardly all the money.

With a basic rate of 22% and higher rate of 40% on part of the income for those earning well above the national average do you not think 26% seems reasonable?

Answer 3

Nope, if he /she has earnings over £38,000 then they pay 40% tax as they are classed in the Higher rate tax payer

Answer 4

Does your friend use our roads, hospitals, public services and other amenities which we take for granted? Of course she or he does. They do need paying for.

2 things are inevitable in this life, death and taxes... but at least you only die once.