The Money Podcast Who Really Pays Tax & Ways to Reduce Your Tax Bill
Who really pays tax in the UK and how can you as an individual reduce your tax bill? Rob speaks to Kane all about tax in this episode, dismantling myths about billionaires and revealing shocking truths about the UK's tax system. From professional beggars earning £200 tax free daily to why 10,000 millionaires fled the UK last year, Rob gives his knowledge and thoughts on wealth, taxation, and economic growth. He also explains why Dubai's becoming a magnet for entrepreneurs and shares practical strategies for managing your tax burden legally and effectively.
KEY TAKEAWAYS
- The top 1% of earners contribute 40% of UK tax revenue, while "working class millionaires" driving Toyotas and Hondas face tax burdens of up to 70% on everything they earn and spend.
- UK's 25% corporation tax is driving businesses offshore, while Dubai's 9% rate and support for creators and startups is attracting global talent and wealth creators.
- Current UK tax policies are creating reverse incentives by penalising employment through increased national insurance and discouraging income growth with 60% tax rates between £100-125K.
- Professional beggars can earn £150-200 tax free daily while receiving benefits and housing support.
- Starting a company allows you to pay tax in arrears rather than immediately at source, enabling better cash flow management and legitimate expense deductions for business related costs.
- The UK's cultural disdain for success, combined with deteriorating public services and increasing tax burden, is predicted to drive half a million millionaires out of the country by 2028.
BEST MOMENTS
"Why don't they give us a year no corp tax? Why don't they then increase it to 5 percent year two, 10 percent year three? Because then all of a sudden more of us are going to start our business."
"Whilst I understand some people are upset the billionaires can put their company offshore... essentially that company is paying less corporation tax, but that means that company can grow because it's paying less tax because taxes stunt your growth."
"Most millionaires are not really rich, so the top three cars that millionaires drive are Toyota, Honda, Ford and many millionaires in the UK became a millionaire over 30 years, largely due to house price rises."
"I pay in total about 45 percent income tax, so nearly half of everything I would want to draw, I have to give away, so it makes it twice as hard for me to grow my own wealth if I'm giving half of it away."
"If you're a billionaire and you can spend a hundred grand or even a couple of million to move your tax affairs to Ireland or somewhere else and get your corp tax down from 25 to 4, are you gonna do that? Yeah, of course, it's just a simple return on investment."
"We need to stop exiling and ostracising and making an enemy of the super rich... we need to stop exiling and making an enemy of the working class rich, and we need to encourage people to start a business."
VALUABLE RESOURCES
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ABOUT THE HOST
Rob Moore is an author of 9 business books, 5 UK bestsellers, holds 3 world records for public speaking, entrepreneur, property investor, and property educator. Author of the global bestseller “Life Leverage” Host of UK’s No.1 business podcast “The Disruptive Entrepreneur”
“If you don't risk anything, you risk everything”
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