Ndubuisi 'Andy' EgwimMoney Coach for Medics|Ex-NHS GP|21+ Yrs Investor| Founder, MoneyWiseDoctor.com|Helping Medics Avoid Big Money Mistakes

black tax charity moneywise doctor

13 Dec 2023 · 1 min

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Transcript excerpt from a YouTube video by Ndubuisi 'Andy' Egwim about managing finances under 'black tax' and charitable giving. The speaker uses a numeric example: if you earn £50,000 and save 5% you would set aside about £2,500 annually; that £2,500 could be donated to charity but 'black tax' typically involves smaller, repeated payments to multiple family members (e.g., £50, £100, £1,000), which can make the total burden feel diffuse and stressful.

Questions this video answers

£50,000

£2,500

£50, £100, £1,000

Chapters

Let's say your income, you're earning £50,000. And for a lot of people, yeah, if you earn £50,000 as a junior doctor and you're putting 5% away, 5%, I think that that will work out somewhere around. For 50,000, that should be about 500, £2,500. So let's say you're putting away £2,500 annually. If you're donating £2,500 to any charity in the UK or Nigeria, anywhere, and they'll probably be writing you a beautiful letter of appreciation every year, and then they might actually invite you special. So if you, if you understand this, you quantify, then it makes you to feel a bit more at peace. Because what happens with black tax, unlike other sort of taxes that you do, you take that 2,500, you give one person 50, give another person 100, give somebody 1,000. So the person that gets 100, it seems like, oh, yeah, give me 100 pounds. It doesn't realize that you're giving to multiple other people at the same time. Yeah, but, but you need to understand that, well, you cannot please everybody at the same time.