And how does it compare with your country's form of taxation?
Taxation in the United States is a complex system which may involve payment to at least four different levels of government and many methods of taxation. United States taxation includes local government, regional entities, and state and federal government.
3 Main Type of Taxes
Proportional tax: Remains a fixed amount (percentage) no matter the amount being taxed.
Progressive tax: Increases as the amount being taxed increases.
Regressive tax: Decreases as the amount being taxed increases.
State and Local Government Taxation
Income
Sales
Property
Federal Taxation
Income tax
Social Security tax
Medicare tax
Corporate income tax
Transfer taxes
Excise taxes
Federal Unemployment Tax
Federal & State Common Taxes
Income Taxes
7 Category of Taxes
1. Income Taxes
2. Property Taxes
3. Consumption Taxes
4. General Corporation Taxes
5. Payroll Taxes
6. Capital Gains Taxes
7. Inheritance Taxes
Never ending list of taxes in the United States
Sales and use tax
Toll
Cigarette and tobacco tax
Alcoholic beverage tax
Retail Beer, Wine and Liquor License Taxes
Tariffs
Environment Affecting Tax
Poll tax
Retirement tax
Real Property Transfer Tax
Wealth (net worth) tax
Commercial Motor Vehicle Tax
Commercial Rent Tax
Horse Race Admissions Tax
Hotel Room Occupancy Tax
Utility tax
Insurance taxes
Lawful gambling tax
Fur clothing tax
Deed tax
Contamination tax
Mineral taxes
Petroleum taxes
Sports bookmaking tax
Wind energy production tax
Social security and Medicare taxes
Federal unemployment tax
Environmental taxes
Communications and air transportation taxes
Fuel taxes
Gift taxes
Death tax
Luxury taxes
What Do Non Americans Think About This?
What Do Non Americans Think About This?
I'd not be surprised if England has more than just those, Lon. I recognize most of the names from local equivalents. Our consumption tax, for example, is 20% with exceptions for uncooked food, clothing and books and we call it Value Added Tax, it applies to all personal purchases and to every business purchase and sale where the firm trades more than around $60,000 a quarter.
What we don't have is any equivalent to local or state government with any tax-raising capacity on consumption. Local government raises money through a rating system on property, both private and business. It has no access to sales. It does hold out a cap to central government funding but that, presumably, is universal.
We have no explicit "Medicare tax", all National Health Service costs are met through regular taxation - all the central government taxes accumulate in a pool, nothing I can think of is ring-fenced. We do have a $200 a year tax on all television owners though, and a variable rate tax on all car owners which reaches $300 a year for large cars and maybe $1000 a year for trucks. That's nominally a Road Tax, though since it's not ring-fenced little of it goes toward road construction or maintenance.
I'm moderately certain we scrapped our Luxury Tax rates in the 1970s.
It's legal for private companies to charge tolls on roads, but the government doesn't as far as I know.
Our Wind energy production tax is negative, it's a subsidy.
What we don't have is any equivalent to local or state government with any tax-raising capacity on consumption. Local government raises money through a rating system on property, both private and business. It has no access to sales. It does hold out a cap to central government funding but that, presumably, is universal.
We have no explicit "Medicare tax", all National Health Service costs are met through regular taxation - all the central government taxes accumulate in a pool, nothing I can think of is ring-fenced. We do have a $200 a year tax on all television owners though, and a variable rate tax on all car owners which reaches $300 a year for large cars and maybe $1000 a year for trucks. That's nominally a Road Tax, though since it's not ring-fenced little of it goes toward road construction or maintenance.
I'm moderately certain we scrapped our Luxury Tax rates in the 1970s.
It's legal for private companies to charge tolls on roads, but the government doesn't as far as I know.
Our Wind energy production tax is negative, it's a subsidy.
Nullius in verba ... ☎||||||||||| ... To Fate I sue, of other means bereft, the only refuge for the wretched left. ... Hold no regard for unsupported opinion.
When flower power came along I stood for Human Rights, marched around for peace and freedom, had some nooky every night - we took it serious. [Fred Wedlock, "The Folker"]
Who has a spare two minutes to play in this month's FG Trivia game! ... My other OS is Slackware.
When flower power came along I stood for Human Rights, marched around for peace and freedom, had some nooky every night - we took it serious. [Fred Wedlock, "The Folker"]
Who has a spare two minutes to play in this month's FG Trivia game! ... My other OS is Slackware.
What Do Non Americans Think About This?
Don't forget the "fees", Lon. The politicians like to use that term to avoid being labeled as raising taxes. An example is California's vehicle registration fee, which varies according to the value of the vehicle.
What Do Non Americans Think About This?
We make more of a distinction between direct and indirect taxes. Unles you are slf employed or a high earner taxes are paid using the pay as you earn system so most iof us have never completed a tax return. Indirect taxes have a greater impact on those on lower incomes so we have no VAT on most food products and items like children's clothing, tobacco, drink etc you don't have to buy fuel duty is probably the most contentious one we have. Americans seem to pay more tax and have a double whammy in state as well as federal taxes but get a lot less back less back for them. Add on what you have to pay for medical cover and the average American is probably a lot worse off than the average Uk resident.
What Do Non Americans Think About This?
gmc;1396455 wrote: the average American is probably a lot worse off than the average Uk resident.You have to be careful with "average", the Americans have a hundred thousand or so mega-rich who skew the figures to some extent. If by "average" you mean the American who has as many poorer as he has richer, the median American, then I'm sure you're right. His living standard is lower and his financial prospects far scarier, and if he's in work he has no notion of adequate paid holiday periods by comparison.
Nullius in verba ... ☎||||||||||| ... To Fate I sue, of other means bereft, the only refuge for the wretched left. ... Hold no regard for unsupported opinion.
When flower power came along I stood for Human Rights, marched around for peace and freedom, had some nooky every night - we took it serious. [Fred Wedlock, "The Folker"]
Who has a spare two minutes to play in this month's FG Trivia game! ... My other OS is Slackware.
When flower power came along I stood for Human Rights, marched around for peace and freedom, had some nooky every night - we took it serious. [Fred Wedlock, "The Folker"]
Who has a spare two minutes to play in this month's FG Trivia game! ... My other OS is Slackware.
What Do Non Americans Think About This?
gmc;1396455 wrote: We make more of a distinction between direct and indirect taxes. Unles you are slf employed or a high earner taxes are paid using the pay as you earn system so most iof us have never completed a tax return. Indirect taxes have a greater impact on those on lower incomes so we have no VAT on most food products and items like children's clothing, tobacco, drink etc you don't have to buy fuel duty is probably the most contentious one we have. Americans seem to pay more tax and have a double whammy in state as well as federal taxes but get a lot less back less back for them. Add on what you have to pay for medical cover and the average American is probably a lot worse off than the average Uk resident.
Interesting---thanks
Most all U.S. residents and citizens as well as businesses are required to file a U.S. Income Tax Form every year. Some will get a refund for over payment of taxes that were taken out via employer with holding and others will have to pay additional tax for under with holding. Many Americans will over pay via employer with holding and then file for a REFUND, using the system as a forced way to save money (dumb---interest free loan to the government).
I received a REFUND for ALL the Federal Income Tax that I had paid in 2011 due to Personal Medical Expenses that exceeded a certain percentage of my 2011 income, and although I wound up not having to pay one penny of Federal Income Tax, I did pay a substantial amount of the other taxes & fees---sales taxes, property taxes etc.
Interesting---thanks
Most all U.S. residents and citizens as well as businesses are required to file a U.S. Income Tax Form every year. Some will get a refund for over payment of taxes that were taken out via employer with holding and others will have to pay additional tax for under with holding. Many Americans will over pay via employer with holding and then file for a REFUND, using the system as a forced way to save money (dumb---interest free loan to the government).
I received a REFUND for ALL the Federal Income Tax that I had paid in 2011 due to Personal Medical Expenses that exceeded a certain percentage of my 2011 income, and although I wound up not having to pay one penny of Federal Income Tax, I did pay a substantial amount of the other taxes & fees---sales taxes, property taxes etc.
What Do Non Americans Think About This?
Can't say, I'm American. But if I could say, my biggest problem with America right now is our health care system. Why people who have health insurance (I do) don't seem to want poor or less fortunate to have it baffles me. Why do we only want the well off to have health care. You're only as healthy as your wallet will allow. Stupid. Get the heath care facilities and insurance companies off of Wall Street. Take the profit out of health care (corporation style).
What Do Non Americans Think About This?
YZGI;1396471 wrote: Can't say, I'm American. But if I could say, my biggest problem with America right now is our health care system. Why people who have health insurance (I do) don't seem to want poor or less fortunate to have it baffles me. Why do we only want the well off to have health care. You're only as healthy as your wallet will allow. Stupid. Get the heath care facilities and insurance companies off of Wall Street. Take the profit out of health care (corporation style).
I disagree that there are Americans that do not want the less fortunate to have Health Care. I think the big issue is how it will be paid for and who will provide the services.
I disagree that there are Americans that do not want the less fortunate to have Health Care. I think the big issue is how it will be paid for and who will provide the services.
What Do Non Americans Think About This?
Corporate and business income tax has to be paid 4 times per year in advance. I have to guess what income my tiny little business will have and write them a check at the beginning of each quarter. Guessing an amount that is too low results in paying a penalty.
What Do Non Americans Think About This?
Wandrin;1396476 wrote: Corporate and business income tax has to be paid 4 times per year in advance. I have to guess what income my tiny little business will have and write them a check at the beginning of each quarter. Guessing an amount that is too low results in paying a penalty.
You'd think that would reduce the potential performance of the entire economy. How long has it been that way, and was it introduced in stages?
You'd think that would reduce the potential performance of the entire economy. How long has it been that way, and was it introduced in stages?
Nullius in verba ... ☎||||||||||| ... To Fate I sue, of other means bereft, the only refuge for the wretched left. ... Hold no regard for unsupported opinion.
When flower power came along I stood for Human Rights, marched around for peace and freedom, had some nooky every night - we took it serious. [Fred Wedlock, "The Folker"]
Who has a spare two minutes to play in this month's FG Trivia game! ... My other OS is Slackware.
When flower power came along I stood for Human Rights, marched around for peace and freedom, had some nooky every night - we took it serious. [Fred Wedlock, "The Folker"]
Who has a spare two minutes to play in this month's FG Trivia game! ... My other OS is Slackware.
What Do Non Americans Think About This?
spot;1396484 wrote: You'd think that would reduce the potential performance of the entire economy. How long has it been that way, and was it introduced in stages?
It has been in place for decades.
It has been in place for decades.
What Do Non Americans Think About This?
Wandrin;1396491 wrote: It has been in place for decades.Self employment in England is referred to as Schedule D and payments are made quarterly on the period one year ago - the first year of self-employment is tax free and the final year has a choose-the-lesser-amount option depending on how you stop work. The system helps people get started and the time gap gives a reasonable period for the final accounts to be drawn up.
Nullius in verba ... ☎||||||||||| ... To Fate I sue, of other means bereft, the only refuge for the wretched left. ... Hold no regard for unsupported opinion.
When flower power came along I stood for Human Rights, marched around for peace and freedom, had some nooky every night - we took it serious. [Fred Wedlock, "The Folker"]
Who has a spare two minutes to play in this month's FG Trivia game! ... My other OS is Slackware.
When flower power came along I stood for Human Rights, marched around for peace and freedom, had some nooky every night - we took it serious. [Fred Wedlock, "The Folker"]
Who has a spare two minutes to play in this month's FG Trivia game! ... My other OS is Slackware.
What Do Non Americans Think About This?
gmc;1396455 wrote: We make more of a distinction between direct and indirect taxes. Unles you are slf employed or a high earner taxes are paid using the pay as you earn system so most iof us have never completed a tax return. Indirect taxes have a greater impact on those on lower incomes so we have no VAT on most food products and items like children's clothing, tobacco, drink etc you don't have to buy fuel duty is probably the most contentious one we have. Americans seem to pay more tax and have a double whammy in state as well as federal taxes but get a lot less back less back for them. Add on what you have to pay for medical cover and the average American is probably a lot worse off than the average Uk resident.
That reads like we don't pay tax on tobacco and alcohol, both are subject to high Duty/Tax
That reads like we don't pay tax on tobacco and alcohol, both are subject to high Duty/Tax
I thought I knew more than this until I opened my mouth
What Do Non Americans Think About This?
spot;1396493 wrote: Self employment in England is referred to as Schedule D and payments are made quarterly on the period one year ago - the first year of self-employment is tax free and the final year has a choose-the-lesser-amount option depending on how you stop work. The system helps people get started and the time gap gives a reasonable period for the final accounts to be drawn up.
That sounds like a good idea.
That sounds like a good idea.
What Do Non Americans Think About This?
Wandrin;1396510 wrote: That sounds like a good idea.
That's how they do it here today. It's also how it was being done as far back as the 1930s, to my knowledge - I'd not like to guess when it started but quite likely during World War 1.
That's how they do it here today. It's also how it was being done as far back as the 1930s, to my knowledge - I'd not like to guess when it started but quite likely during World War 1.
Nullius in verba ... ☎||||||||||| ... To Fate I sue, of other means bereft, the only refuge for the wretched left. ... Hold no regard for unsupported opinion.
When flower power came along I stood for Human Rights, marched around for peace and freedom, had some nooky every night - we took it serious. [Fred Wedlock, "The Folker"]
Who has a spare two minutes to play in this month's FG Trivia game! ... My other OS is Slackware.
When flower power came along I stood for Human Rights, marched around for peace and freedom, had some nooky every night - we took it serious. [Fred Wedlock, "The Folker"]
Who has a spare two minutes to play in this month's FG Trivia game! ... My other OS is Slackware.
What Do Non Americans Think About This?
spot;1396467 wrote: You have to be careful with "average", the Americans have a hundred thousand or so mega-rich who skew the figures to some extent. If by "average" you mean the American who has as many poorer as he has richer, the median American, then I'm sure you're right. His living standard is lower and his financial prospects far scarier, and if he's in work he has no notion of adequate paid holiday periods by comparison.
:-5 I know, the average man in Britain has less than two legs, I should have referred to the median.
posted by bruv
That reads like we don't pay tax on tobacco and alcohol, both are subject to high Duty/Tax
:o OK my punctuation was a bit off as well. I've been working early mornings my body clock is a bit off.
Indirect taxes have a greater impact on those on lower incomes so we have no VAT on most food products and items like children's clothing. Tobacco, drink etc you don't have to buy - fuel duty is probably the most contentious one we have.
posted by spot
Self employment in England is referred to as Schedule D and payments are made quarterly on the period one year ago - the first year of self-employment is tax free and the final year has a choose-the-lesser-amount option depending on how you stop work. The system helps people get started and the time gap gives a reasonable period for the final accounts to be drawn up.
Actually it's twice a year payment by 31st January and 31st july for profits made in the previous tax year. The disadvantage is you may be paying tax on a bumper year when the current year has been dismal and you're skint. Cash flow is a wonderful thing. Unlike their treatment amazon and vodaphone HMRC don't piss about and really come after you for payment if you are a small business.
:-5 I know, the average man in Britain has less than two legs, I should have referred to the median.
posted by bruv
That reads like we don't pay tax on tobacco and alcohol, both are subject to high Duty/Tax
:o OK my punctuation was a bit off as well. I've been working early mornings my body clock is a bit off.
Indirect taxes have a greater impact on those on lower incomes so we have no VAT on most food products and items like children's clothing. Tobacco, drink etc you don't have to buy - fuel duty is probably the most contentious one we have.
posted by spot
Self employment in England is referred to as Schedule D and payments are made quarterly on the period one year ago - the first year of self-employment is tax free and the final year has a choose-the-lesser-amount option depending on how you stop work. The system helps people get started and the time gap gives a reasonable period for the final accounts to be drawn up.
Actually it's twice a year payment by 31st January and 31st july for profits made in the previous tax year. The disadvantage is you may be paying tax on a bumper year when the current year has been dismal and you're skint. Cash flow is a wonderful thing. Unlike their treatment amazon and vodaphone HMRC don't piss about and really come after you for payment if you are a small business.
What Do Non Americans Think About This?
At least if you've had a bumper year you can set the tax aside for subsequent payment. How you're meant to pay ahead of time for an anticipated bumper period I can't imagine, it seems outrageous. You're meant to borrow it?
Nullius in verba ... ☎||||||||||| ... To Fate I sue, of other means bereft, the only refuge for the wretched left. ... Hold no regard for unsupported opinion.
When flower power came along I stood for Human Rights, marched around for peace and freedom, had some nooky every night - we took it serious. [Fred Wedlock, "The Folker"]
Who has a spare two minutes to play in this month's FG Trivia game! ... My other OS is Slackware.
When flower power came along I stood for Human Rights, marched around for peace and freedom, had some nooky every night - we took it serious. [Fred Wedlock, "The Folker"]
Who has a spare two minutes to play in this month's FG Trivia game! ... My other OS is Slackware.
What Do Non Americans Think About This?
I have a tiny little one-person corporation. I have never had any employees other than myself and never will. I am required by law to hire a certified public accountant to do my taxes 5 times each year (4 estimated tax and 1 annual filing). I also have a guy that is a tax planner, to tell me about the new tax laws every year. Just for fun, I am required by law to pay for insurance just in case an employee (me) injures himself in my place of business (home) and decides to sue the company (me). Seriously, I am required by law to pay for insurance in case I decide to sue myself.
-
Kathy Ellen
- Posts: 10569
- Joined: Wed Mar 15, 2006 4:04 pm
What Do Non Americans Think About This?
Wandrin;1396570 wrote: I have a tiny little one-person corporation. I have never had any employees other than myself and never will. I am required by law to hire a certified public accountant to do my taxes 5 times each year (4 estimated tax and 1 annual filing). I also have a guy that is a tax planner, to tell me about the new tax laws every year. Just for fun, I am required by law to pay for insurance just in case an employee (me) injures himself in my place of business (home) and decides to sue the company (me). Seriously, I am required by law to pay for insurance in case I decide to sue myself.
OMG, Wandrin....I really needed a good laugh tonight, and found your post to be absolutely hysterical!! Do you write comedy also...lol
Thanks:-6
OMG, Wandrin....I really needed a good laugh tonight, and found your post to be absolutely hysterical!! Do you write comedy also...lol
Thanks:-6
What Do Non Americans Think About This?
Kathy Ellen;1396571 wrote: OMG, Wandrin....I really needed a good laugh tonight, and found your post to be absolutely hysterical!! Do you write comedy also...lol
Thanks:-6
Thank you, Kathy Ellen. If I didn't laugh at some of these things I would have even more grey hair! The next time you need a good laugh, ask me to tell you about my IRS audits. Oh the amazing questions those guys in suits can ask!
Thanks:-6
Thank you, Kathy Ellen. If I didn't laugh at some of these things I would have even more grey hair! The next time you need a good laugh, ask me to tell you about my IRS audits. Oh the amazing questions those guys in suits can ask!
-
Kathy Ellen
- Posts: 10569
- Joined: Wed Mar 15, 2006 4:04 pm
What Do Non Americans Think About This?
Wandrin;1396572 wrote: Thank you, Kathy Ellen. If I didn't laugh at some of these things I would have even more grey hair! The next time you need a good laugh, ask me to tell you about my IRS audits. Oh the amazing questions those guys in suits can ask!
Do you blog? If not, you should. You have a quick wit about you, and it's nice to meet you.
Do you blog? If not, you should. You have a quick wit about you, and it's nice to meet you.
What Do Non Americans Think About This?
Kathy Ellen;1396573 wrote: Do you blog? If not, you should. You have a quick wit about you, and it's nice to meet you.
Why thank you, dear lady. It's nice to meet you too.
Why thank you, dear lady. It's nice to meet you too.
What Do Non Americans Think About This?
Wandrin;1396572 wrote: Thank you, Kathy Ellen. If I didn't laugh at some of these things I would have even more grey hair! The next time you need a good laugh, ask me to tell you about my IRS audits. Oh the amazing questions those guys in suits can ask!
You mean the plonkers in suits that couldn't hold down a real job. In the UK they have been cutting back on inland revenue staff to such an extent they have lost more in tax they couldn't collect than they saved making the cutbacks. Inland revenue and customs and excise used to be separate but they amalgamated them in to her majesty's revenue and customs with the senior posts going to the customs side. Customs had a more police like mentality and were out to catch people breaking the law whereas the revenue saw their job as collecting tax. The latter used to allow businesses some leeway taking the view it was better to collect tax than put a business in receivership by pursuing for immediate payment. As a result of the police mentality more businesses are being taken to court earlier and forced in to bankruptcy rather than and the tax take has actually gone down. To rub salt in the would big companies get away with non payment as it seems putting several hundred people out of work in one go is worse than putting several hundred in tens of businesses on the dole - gets bad publicity i suppose. You couldn't make up some of the things that happen. We have professional politicians now in power who have never held down a proper job and haven't a clue.
Your IRS seem to be even more vicious and draconian though - not that I have any actual experience to go by though just that impression.
You mean the plonkers in suits that couldn't hold down a real job. In the UK they have been cutting back on inland revenue staff to such an extent they have lost more in tax they couldn't collect than they saved making the cutbacks. Inland revenue and customs and excise used to be separate but they amalgamated them in to her majesty's revenue and customs with the senior posts going to the customs side. Customs had a more police like mentality and were out to catch people breaking the law whereas the revenue saw their job as collecting tax. The latter used to allow businesses some leeway taking the view it was better to collect tax than put a business in receivership by pursuing for immediate payment. As a result of the police mentality more businesses are being taken to court earlier and forced in to bankruptcy rather than and the tax take has actually gone down. To rub salt in the would big companies get away with non payment as it seems putting several hundred people out of work in one go is worse than putting several hundred in tens of businesses on the dole - gets bad publicity i suppose. You couldn't make up some of the things that happen. We have professional politicians now in power who have never held down a proper job and haven't a clue.
Your IRS seem to be even more vicious and draconian though - not that I have any actual experience to go by though just that impression.
What Do Non Americans Think About This?
gmc;1396585 wrote:
Your IRS seem to be even more vicious and draconian though - not that I have any actual experience to go by though just that impression.
I get audited almost every year - a multi-day event that forces me to pay for accountants and lawyers. The IRS focusses on ridiculously trivial items, such as how I keep computer software used for business and personal use separate, do I have any games on business computers, and even what I used the iTunes points my business credit card gives as dividends. Meanwhile, they don't have the time to investigate the big players with multiple offshore accounts and shady business practices. If they find a problem in my tax returns, all of the effort spent could force me to pay an additional few dollars in taxes, while spending the same time and effort with some of the big corporations could net millions. It is theater of the absurd.
Your IRS seem to be even more vicious and draconian though - not that I have any actual experience to go by though just that impression.
I get audited almost every year - a multi-day event that forces me to pay for accountants and lawyers. The IRS focusses on ridiculously trivial items, such as how I keep computer software used for business and personal use separate, do I have any games on business computers, and even what I used the iTunes points my business credit card gives as dividends. Meanwhile, they don't have the time to investigate the big players with multiple offshore accounts and shady business practices. If they find a problem in my tax returns, all of the effort spent could force me to pay an additional few dollars in taxes, while spending the same time and effort with some of the big corporations could net millions. It is theater of the absurd.
What Do Non Americans Think About This?
Wandrin;1396591 wrote: I get audited almost every year - a multi-day event that forces me to pay for accountants and lawyers. The IRS focusses on ridiculously trivial items, such as how I keep computer software used for business and personal use separate, do I have any games on business computers, and even what I used the iTunes points my business credit card gives as dividends. Meanwhile, they don't have the time to investigate the big players with multiple offshore accounts and shady business practices. If they find a problem in my tax returns, all of the effort spent could force me to pay an additional few dollars in taxes, while spending the same time and effort with some of the big corporations could net millions. It is theater of the absurd.
You're an easy target that's why. Why would it matter if you have games on business computers so long as you don't claim tax relief for the software? Computers are a wasting asset anyway. My business computer I also use for amusement, as it happens I have unlimited broadband on a monthly tariff it would be absurd if they suggested I claim pro rata I don't think they would waste their time.
I used to know a tax inspector quite well - he made the point it was often quite easy to spot someone fiddling if it was a small business - if they were declaring low profits while claiming for an expensive car for instance.
You're an easy target that's why. Why would it matter if you have games on business computers so long as you don't claim tax relief for the software? Computers are a wasting asset anyway. My business computer I also use for amusement, as it happens I have unlimited broadband on a monthly tariff it would be absurd if they suggested I claim pro rata I don't think they would waste their time.
I used to know a tax inspector quite well - he made the point it was often quite easy to spot someone fiddling if it was a small business - if they were declaring low profits while claiming for an expensive car for instance.
What Do Non Americans Think About This?
gmc;1396727 wrote: You're an easy target that's why. Why would it matter if you have games on business computers so long as you don't claim tax relief for the software? Computers are a wasting asset anyway. My business computer I also use for amusement, as it happens I have unlimited broadband on a monthly tariff it would be absurd if they suggested I claim pro rata I don't think they would waste their time.
I used to know a tax inspector quite well - he made the point it was often quite easy to spot someone fiddling if it was a small business - if they were declaring low profits while claiming for an expensive car for instance.
I'm sure that I trigger the audits for being non-standard, such as paying myself a very low salary (investing the rest for retirement). Then again, one of the US presidential candidates claimed a tax deduction last year of $77,000 for food for his dressage horse, without triggering an audit.
I used to know a tax inspector quite well - he made the point it was often quite easy to spot someone fiddling if it was a small business - if they were declaring low profits while claiming for an expensive car for instance.
I'm sure that I trigger the audits for being non-standard, such as paying myself a very low salary (investing the rest for retirement). Then again, one of the US presidential candidates claimed a tax deduction last year of $77,000 for food for his dressage horse, without triggering an audit.
What Do Non Americans Think About This?
Wandrin;1396791 wrote: I'm sure that I trigger the audits for being non-standard, such as paying myself a very low salary (investing the rest for retirement). Then again, one of the US presidential candidates claimed a tax deduction last year of $77,000 for food for his dressage horse, without triggering an audit.
Over here any company with a turnover of below (about) £150K can self audit. I took advantage of that for years before I took the King's shilling and turned permie which meant that instead of employing a firm of accountants to turn the detailed accounts I kept myself into a balance sheet and P&L declaration I could do it myself (a days work each year).
I had far less problems after I started doing that than I had using the qualified accountants. The only one I can remember was when I changed tax office and the new taxman rejected my accounts because I referred to Depreciation instead of Capital Allowance - I went back to my old taxman and he taught me the difference, £0.00 over the year.
Over here any company with a turnover of below (about) £150K can self audit. I took advantage of that for years before I took the King's shilling and turned permie which meant that instead of employing a firm of accountants to turn the detailed accounts I kept myself into a balance sheet and P&L declaration I could do it myself (a days work each year).
I had far less problems after I started doing that than I had using the qualified accountants. The only one I can remember was when I changed tax office and the new taxman rejected my accounts because I referred to Depreciation instead of Capital Allowance - I went back to my old taxman and he taught me the difference, £0.00 over the year.