PROTECT, PLAN & PASS ON... During your working life just under half goes directly or indirectly to the Government every year! For the employed it is just shy of 42% and for the self employed it is slightly less. This includes indirect taxes (such as VAT and Corporation Tax) as well as direct taxes (Income Tax and National Insurance). It does not include the latest increases in NI, due to kick in soon.
If you were to pay all your Tax commitments up front, it would take from the 1st of January through to 31st May (aka Tax Free Day - Ref: Adam Smith Institute), after which your income becomes 'wholly' yours for the remainder of the year. And this is repeated year in, year out.
Most of us pay our Taxes and have no issues in doing so. Given the facts above, it is almost half of what we earn, but hey it's all good. So is it fair, when you pass away and wish to pass all of your lifetime's hard work to your family, that anything above the threshold gets whacked at 40% Inheritance Tax by the Government? Or that it may get swallowed up by potential care fees? Makes you think, doesn't it?
It's not only prudent, but we would say also ethical, to Protect, Plan and Pass On securely to the next generation. Give me a call for a free consultation.