How Much Tax You ACTUALLY Pay (It’s Shocking)
Rob Moore argues the average UK household pays roughly 66% of earnings in taxes across 40 different levies, from income tax to five separate car ownership taxes. He warns future budgets will raise taxes further and promotes Money.School, a platform offering courses and strategies to reduce tax bills.
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how much tax you actually pay in the UK, and it's shocking. And so many people I see getting it wrong, not understanding just how much tax you pay. Now, an article has just come out by This Is Money, and they believe there are 37 different taxes that the average household pays. 37. Oh, and by the way, they missed 3. Um, so there's actually 40. I found 3 more, and I'm going to now break down exactly how much tax the average household pays, um, and it is shocking. Oh, and by the way, if you're more than an average earner, you'll pay even more. I'm going to share the amount that you pay. I'm going to share the percentage you pay. I've just shared just how many taxes you pay, and people are really naive about this. I do my posts on LinkedIn. I lay it all out. People get really triggered. They reckon I'm just sort of creating fear. Oh no, no, you don't pay 50% in tax. Oh, your first £12,000 is tax-free. They have no idea that you pay tax on what you earn and tax on what you spend. You pay tax when you're alive, you pay tax when you're dead. You pay tax to your country and you pay tax to your council, your county. You're literally double taxed. Everywhere. There are 5 different types of tax, just for example, on owning a car. So here it is laid out. Um, the average person in the UK earns £37,430, which by the way makes them broke. With 40 different taxes, £37,430 really is just not a lot of money. Unfortunately, sorry to say it, but you're broke if you're earning under— you're probably broke if you're earning under £150,000. Do you know when you earn £150,000, you pay £53,000-ish just in income tax? That's not the 36 or the 39 other taxes. So the average UK person pays £37,430 in tax. Now when you add the 40 different taxes— I'm walking in the middle of nowhere, by the way— when you add the 40 different taxes together, that's about £32,000 in tax that the average household pays. So the average person earns £37,000 and the average household pays £32,000 of the £37,000 in tax, which should absolutely shock you. Now, I just went and did some research. The average household has 1.3 earners. So when you, when you times the amount that the average household earns by 1.3, and then you take off the household tax of £32,000, can you guess how much as a percentage of everything you earn and everything you spend is tax? Because it should shock you. And by the way, I think it's probably more because they've probably missed some things. So you pay, I would say, minimum on average 66% in tax. Two-thirds of everything you earn and spend is taxed. And why are you taxed on what you earn and then taxed again on what you spend? So what this means is the average person in the UK is working 3.5 days to 4 days a week for the government and the rest for themselves. Which to me beggars belief. Would you sign up to working for two-thirds of your time for the government, one-third of the time for you and your family? And by the way, it's the first two-thirds of the time that you're working for the government and then the last one-third of the time that you're working for yourself. Because when you're employed, you pay tax first and you get paid last. So why is there not outrage? Why are there not riots on the streets? Why are people not, you know, forcing themselves into HMRC government buildings? Why are we allowing this? And it's getting worse and worse and worse. Oh, and by the way, you know when the budget When that happens, the autumn budget, taxes are going to go up again. Absolute fact. We need tens of billions more for the NHS, tens of billions more for defence. Where are they going to get it from? So if you're— let me just summarise this. The average household pays £32,000 in tax across 40 different taxes. The main ones are income tax, corporation tax, VAT, council tax, etc. Okay, now the average household only earns 1.3 times 37,000. The average person earns 37,000, the average household has 1.3 earners. Therefore, 37,000 times 1.3 minus 32,000, or divided by 32,000, that means you're paying 66% of everything you earn and everything you spend in tax. That's the reality. Anyone want to challenge it, let me know. Um, are there any other taxes you think that are probably not included? By the way, this is from an article on This Is Money, the 37 different taxes. You know, there's alcohol taxes, cigarette tax. I added inheritance tax, I added electric vehicles tax. Now of course you don't pay some of those, but you pay more of others. And as soon as you start to earn more 'Cause if the average person is earning £37,000, then they're not actually paying masses in income tax. They're paying about 10% in income tax. So that's only what, 28%, I don't know, under 30%. This is where people get it wrong. 'Cause people go, oh no, no, well, if you earn £37,000, you pay £10,600 in income tax. You know, that's under a third. That's only 30%, Rob, it's 28%. But when you add everything else, on top. And then of course when you earn more, you're taxed more. If you earn £150 grand, you pay £53,000 in tax. So why are we not on the streets? Why are we not holding our governments to account? Why are we allowing this to happen? We put them in power, we need to remove them or get them to start reducing the taxes. Because it is not right that you pay two-thirds of everything you earn and you spend in tax. Anyway, I digress, or I labor the point. If you'd like to get your tax bill down and your earning power up, I recommend you join Money.School because inside Money.School I've had two of my best accountants come in and share with you strategies and tactics to get your tax bill down. What's the point in earning more if you're giving two-thirds of it away to the government? What is the point? Why would you do that? And then also, not only that, the more you earn, you're giving more than 66% of everything you earn and you spend away to the government. So not only do you want to get your earning up, but probably more importantly is you need to reduce your tax bill. You have to have a company to do that. Anyone can start a company. People think it's complicated. It's really simple. You can do it for under 50 quid. You could do it today. And so I've, uh, how to start and scale a business and how to get your tax bill down and some guidance from good accountants. That's all now inside money.school. So let me give you the link. Um, yeah, you do get taxed on tax in fuel. Do you know there's 5 different ways you're taxed just to own and run a car? I mean, if you think about it, that's absolutely mad. And by the way, you've already been taxed to draw the money to buy the car. You're taxed to draw the money to buy the car, then VAT sales tax is added to the car, and then taxed to put it on the road, and then taxed to fill it up with fuel, and then taxed to park it, and then taxed to get it fixed. And then tax to sell it. Fucking hell. All right, anyway, you want to get rid of all of this shit? Go to money.school. Um, it costs less than 50p a day. You can cancel anytime. There's no ongoing contract, so there's no risk to you. Costs less than I spending on coffee in a 24-hour period to join money.school, where there's courses, resources, and masterclasses to get your tax bill down, your income streams up, and start and scale a business, learn how to make, manage, and multiply more money, learn how to figure out how to avoid a lot of the taxes by just not being involved in the taxable event. And then what you can offset and reduce and have as reliefs on your tax bill, and then sort of tax saving strategies like entrepreneurs relief, capital allowances, research and development, et cetera. There's so much to learn. And I simplify it inside money.school because what you find the government do is they make it really complicated. You know, there's a 17,000-page tax code. So if they confuse you and then scare you at the same time, what are you going to do? Oh, okay. I'll just give you two-thirds of my money because I'm scared and confused. Whereas if you find an accountant who knows the tax code better than most people who work at HMRC, because it is complicated, And they could tell you, no, this is— you can save, you can offset this, this, this, this, and this in your business. Oh, I don't have a business. Well, just start a company then. Oh, I don't know how to start a company. And all of this stuff is taught inside Money.School. And this stuff should be taught in schools, hence why I've called it Money.School, my online global money school. And I'm simplifying it and removing all the overwhelm and the fear and the confusion and everything else. So Natasha said knowledge and education. InsideMoney.school is the answer. It's a brilliant platform that will definitely teach you how to get— I assume that means rich. All right. So let me know, what do you think of the shocking statistic that two-thirds of everything you earn and spend is tax? By the way, it's not me just making up a number. This Is Money published an article. They listed the 37 different ways the average household is taxed. I found 3 more. That's 40. I worked out, okay, the average household pays £32,000 in tax. The average person earns £37,000 in tax. The average household has 1.3 workers. And I worked out the percentage and it's 66%. It's a shocker. And the only way out of this is education. The more you learn, the more you earn. And so maybe money.school's for you then.
