(LONDON) Universal Credit FACT CHECKED Reality Report: Before the chancellor cut the taper rate, a universal credit claimant earning £9,000 a year from a part-time job would be taking home 37p of an extra £1 earned #AceNewsDesk report

#AceNewsReport – Nov.25: About 40% of claimants are working. And the taper rate, as it is known, has been cut from 63p to 55p – for each £1 earned: But this can still leave claimants effectively paying very high rates of tax.

#AceDailyNews BBC FACT CHECKED News Report: The universal credit claimants effectively paying top tax rates and the government has cut the amount of benefits universal credit claimants lose if they earn money.

By Anthony Reuben
BBC Reality Check

Woman with bill

In fact, they can end up taking home a smaller proportion of an extra £1 earned than someone earning £150,000 a year.

Here, are five examples of workers paying very high effective tax rates. 

Now, that rises to 45p – but that is still the equivalent of a pretty high tax rate.

Now consider an employee, for example a parent, earning enough to pay income tax – so at least £12,570 a year – but still entitled to universal credit.

Even with the lower taper rate, they are still taking home only 31p of an extra £1 earned.

The taper rate is applied after income tax and National Insurance have been paid, which is why, in this example, it is taking 37p of an extra £1 earned and not 55p.

Income tax rates and bands are slightly different in Scotland. There is a 19% starter rate for income tax between earnings of £12,570 and £14,667. But in this case, that would still leave our worker taking home 31p of an extra £1 earned.

Child benefit is paid to families to help with the costs of raising children. 

It is £21.15 a week for the first child and £14 a week for each additional child.

But the benefit is withdrawn gradually for those earning between £50,000 and £60,000.

Consider someone with three children, earning £50,500 a year. 

The loss of child benefit means for an extra £1 earned, they take home 32p.

The higher rate of income tax in Scotland is 41%, so our worker with three children, earning £50,500, would keep 31p of an extra £1 earned.

In Scotland, people start paying the 41% higher rate of income tax when they are earning £43,663 a year.

In the rest of the UK, they start paying a 40% higher rate at £50,271 a year. 

But National Insurance rates are the same throughout the UK, which means a worker in Scotland earning between £43,663 and £50,271 would be paying both the higher rate of income tax and the 12% higher rate of National Insurance at the same time, meaning they take home only 47p of an extra £1 earned.

In the rest of the UK, employees earning that much would be paying only 20% income tax, so would take home 68p of an extra £1 earned – 21p more than their Scottish counterparts.

People do not have to start paying income tax until they are earning more than £12,570 a year.

This is called the personal allowance.

But the personal allowance is withdrawn at a rate of £1 of allowance for every extra £2 earned above £100,000.

So those earning more than £100,000 a year start paying tax on part of their earnings they did not previously have to pay tax on.

And this means someone earning between £100,000 and £125,140 a year would take home 38p of an extra £1 earned. In Scotland, it would be 37p.

All of these people are taking home less of an extra £1 earned than somebody earning more than £150,000 and paying what is supposedly the top rate of tax.

That person would take home 53p of an extra £1 earned.

Bear in mind all of these figures are the current rates – National Insurance rates will be rising in April.

We asked the Treasury why some workers pay much higher rates of tax than people earning considerably more but have not received a reply. 

Cliff edges 

In all the examples above, somebody earning an extra £1 still gets to keep some of this extra money – but there are situations in which earning an extra £1 could actually make someone worse off overall. These are known as cliff edges.

For example, if you earn less than £50,270 and your husband, wife or civil partner earns less than £12,570, they can use marriage allowance to transfer £1,260 of their income tax personal allowance to you.

That would mean you no longer needed to pay income tax on £1,260 of your earnings, saving you £252 a year.

But if you earned an extra £1, putting you on £50,271, you would no longer be eligible for marriage allowance, leaving you almost £252 a year worse off.

In Scotland, the cliff edge would be at £43,662 a year.

Cliff edges also occur with other schemes, including the personal savings allowance and tax-free childcare.

The comparable tax rate for somebody outside Scotland earning £44,000 a year was corrected. 

Editor says …Sterling Publishing & Media Service Agency is not responsible for the content of external site or from any reports, posts or links, and can also be found here on Telegram: https://t.me/acenewsdaily all of our posts fromTwitter can be found here: https://acetwitternews.wordpress.com/ and all wordpress and live posts and links here: https://acenewsroom.wordpress.com/and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#fact-checked, #govuk, #london, #taxation, #universal-credit, #welfare

(MALTA) Institute of Taxation Report: Any amnesty or other prescribed or conventional mechanism which effectively rewards defaulting taxpayers, is patently inequitable and should not be entertained, much less promulgated and implemented, two institutes warned on Saturday #AceNewsDesk report

#AceNewsReport – Nov.14: The Malta Institute of Taxation and the Institute of Financial Services Practitioners were reacting to a new measure that allows those with tax arrears due by January 2021 to pay any tax due on the transfer of property purchased before March 2021 against their arrears.

#AceDailyNews says according to a Times Of Malta Report: Amnesty which rewards property tax defaulters ‘endorses unlawful behaviour’

The measure has also been criticised by the Malta Chamber.

The warning against the amnesty comes from two entities. File photo.

The institutes said in a statement that, if at all possible, the injustice inherent in this amnesty is all the more nefarious as the rules apply selectively favouring defaulting taxpayers who own immovable property situated in Malta acquired on or prior to March 31 and who choose to dispose of such property before the end of this year. “Why the government has seen fit to promulgate these rules at the current time is beyond our comprehension,” they said. They added that since Malta was greylisted earlier in the year, both institutes have been actively participating in and contributing to national efforts to procure Malta’s…
—-

#AceNewsDesk report …………..Published: Nov.14: 2021:

Editor says …Sterling Publishing & Media Service Agency is not responsible for the content of external site or from any reports, posts or links, and can also be found here on Telegram: https://t.me/acenewsdaily all of our posts fromTwitter can be found here: https://acetwitternews.wordpress.com/ and all wordpress and live posts and links here: https://acenewsroom.wordpress.com/and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#financial-services, #malta, #taxation

(NEW YORK) Tax Report: Tesla CEO Elon Musk has sold more than $5 billion worth of stock in the electric car maker after his much-publicized Twitter poll criticising President Joe Biden’s proposed ‘billionaire’s tax’ on capital gains #AceNewsDesk report

#AceNewsReport – Nov.12: In his first share sale since 2016, Musk’s trust sold nearly 3.6 million shares in Tesla, worth around $4 billion, while he also sold another 934,000 shares for $1.1 billion to cover tax withholding obligations after exercising options to acquire nearly 2.2 million shares.

#AceDailyNews says according to MailOnline Report: Elon Musk sells $5 BILLION worth of Tesla shares to cover tax obligations

The $1.1 billion block of shares, sold on Monday, was part of a pre-arranged trading plan that was put in place on September 14, well before he posted the Twitter poll on Saturday, SEC disclosures show.

But the subsequent $4 billion sell-off on Tuesday and Wednesday does not reference the pre-arranged plan and appears to be in response to the Twitter poll, in which his followers voted in favor of him reducing his stake in the company.

The 4.5 million shares sold equate to about 3 percent of his total holdings in the electric vehicle manufacturer, which makes up the vast majority of his estimated $281.6 billion fortune, according to Forbes. 

Tesla CEO Elon Musk has sold some of his stake in the electric car maker to satisfy tax obligations related to exercising stock options
The electric car maker's stock rose 2 percent after the bell on the news

Musk posted the poll in protest of Biden’s proposed tax on unrealized stock gains, saying that he had no cash to pay taxes on the rising value of his assets if such a levy were put in place.

Now, Musk will pay massive capital gains taxes on the proceeds from the sale of stock, which is currently how investments are taxed.  

Tesla’s stock rose 2 percent after the bell on the news of Musk’s trades, helping to offset a multiday sell-off that had endangered the company’s position in the $1 trillion club.

It comes after Musk on Saturday polled Twitter users about selling 10 percent of his stake to cover President Joe Biden’s proposed tax on unrealized gains, setting off worries that such a sale could hurt Tesla’s share price. 

Unrealized gains refer to the rising value of stocks before they are sold. Current law allows for profits to be taxed only when they are realized upon the sale of stock or similar assets. 

Musk vowed to abide by the result of the Twitter poll, in which 58 percent voted in favor of him selling the shares. 

In Wednesday’s trading session Tesla recovered 4.3 percent to $1,067.95 after shares dropped sharply over the Twitter poll.

‘Following the bizarre Twitter poll Musk put out over the weekend on his 10 percent ownership stake to be sold, it appears Musk walked the walk and thus has started selling Tesla shares into year-end,’ said Wedbush analyst Dan Ives in a research note obtained by DailyMail.com.

‘The question will be for investors if he sells his full 10 percent ownership stake over the coming months or is it done piece by piece heading during 2022,’ he added. 

Ives remains bullish on Tesla with an outperform rating, saying it would be better for Musk to ‘rip the band-aid off now and sell this portion of stock rather than it lingering over the next year.’ 

In its filing, Tesla said Musk sold shares on Monday to satisfy tax withholding obligations related to exercising stock options to purchase 2,154,572 shares.

Musk, 50, poised a question to his horde of 63.1 million Twitter followers on Saturday asking if he should sell 10 percent of his $250 billion stake in the company
After the results indicated users were in favor of the billionaire selling off some of his Tesla shares, Musk since said he was 'prepared to accept either outcome'

The sell-off does not represent a full 10 percent liquidation of Musk stake in the company, which would be worth about $20 billion.  

While Tesla has lost close to $150 billion in market value this week, retail investors have been net buyers of the stock. 

Some 58 percent of Tesla trade orders on Fidelity’s brokerage website on Wednesday have been for purchases, rather than sales.

Retail investors made net purchases of $157 million on Monday and Tuesday, according to Vanda Research.

Tesla is now up more than 51 percent in 2021, thanks largely to an October rally that was fueled by an agreement to sell 100,000 vehicles to rental car company Hertz.

‘The company itself is on fire, with strong results,’ said Tim Ghriskey, a senior portfolio strategist at New York-based investment management firm Ingalls and Snyder. ‘That is not going to fade quickly.’

Bullish sentiment returned to Tesla’s options on Wednesday, with about 1.1 calls traded for every put. Calls are typically used for bullish trades, while buying puts shows a bearish bias.

The company’s options accounted for about $109 billion in premium changing hands over the last two weeks, or about one in every three dollars traded in the U.S.-listed options market, according to a Reuters analysis of Trade Alert data.

#AceNewsDesk report ……..Published: Nov.12: 2021:

Editor says …Sterling Publishing & Media Service Agency is not responsible for the content of external site or from any reports, posts or links, and can also be found here on Telegram: https://t.me/acenewsdaily all of our posts fromTwitter can be found here: https://acetwitternews.wordpress.com/ and all wordpress and live posts and links here: https://acenewsroom.wordpress.com/and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#new-york, #taxation, #tesla

(ROME) #G20 Summit Report: Leaders of the world’s 20 major economies have approved a global agreement that will see the profits of large businesses taxed at least 15% #AceNewsDesk report

#AceNewsReport – Oct.31: It follows concern that multinational companies are re-routing their profits through low tax jurisdictions: The pact was agreed by all the leaders attending the G20 summit in Rome.

#AceDailyNews says according to BBC Business #G20 World leaders agree to historic tax deal, which was proposed by the US, is expected to be officially adopted on Sunday, according to Reuters news agency, and will be enforced by 2023 ….

#AceDailyNews says sounds great but by 2023 all these corporate companies will have found a loop-hole to be able to legally AVOID paying some or part of it …

READ: What was also discussed and agreed OR Not below ….

World leaders meet at the G20 summit
Rome’s G20 summit will set the tone for the COP26 climate summit in Glasgow, held immediately after

Climate change and Covid are also on the agenda of the summit, which is the leaders’ first in-person gathering since the start of the pandemic.

The G20 group – made up of 19 countries and the European Union – is short by two, however, with China’s Xi Jinping and Russia’s Vladimir Putin choosing to appear via video link.

US Treasury Secretary Janet Yellen said the historic agreement was a “critical moment” for the global economy and will “end the damaging race to the bottom on corporate taxation”.

She wrote on Twitter that US businesses and workers would benefit from the deal even though many US-based mega-companies would have to pay more tax.

Here at the G20, leaders representing 80% of the world’s GDP – allies and competitors alike – made clear their support for a strong global minimum tax. This is more than just a tax deal – it’s diplomacy reshaping our global economy and delivering for our people.— President Biden (@POTUS) October 30, 2021

The G20 summit comes ahead of the much-anticipated COP26 summit on climate change in Glasgow which begins on Monday. What happens at the G20 may set the tone for COP26, with sharp divisions remaining between countries on their commitments to tackling climate change.

Italy’s Prime Minister Mario Draghi opened the two-day G20 summit with a message of unification, telling world leaders that “going it alone is simply not an option. We must do all we can to overcome our differences”.

There are increasingly dire warnings from experts for the future if urgent action is not taken to cut carbon emissions.

Speaking to the BBC, UK Prime Minister Boris Johnson described climate change as “the biggest threat to humanity”, saying it posed a “risk to civilisation basically going backwards”.

However, he acknowledged that neither the G20 meeting nor COP26 would halt global warming, but could, if the right measures were taken, “restrict the growth in the temperature of the planet”.

According to Reuters news agency, a draft communiqué outlines a promise from the G20 to work towards limiting the rise in temperatures to 1.5C (2.7F), saying it “will require meaningful and effective actions by all countries”.

The draft also notes the need for “developed countries to mobilise $100bn (£73bn) annually from public and private sources through to 2025 to address the needs of developing countries” so they can tackle climate change – a promise richer countries have failed to keep since 2009, when it was initially pledged.

A message to Iran

Separately, the leaders of the US, Germany, France and UK met to discuss their “grave and growing concern” over Iran’s nuclear activities. Iran is not part of the G20 forum.

In a joint statement, the nations said that if Iran continued its nuclear advances, that would jeopardise the possibility of it returning to the 2015 nuclear deal with the US and economic sanctions being lifted.

They urged Iranian president, Ebrahim Raisi to “change course… to avoid a dangerous escalation”.

Former US President Donald Trump abandoned the deal in 2018, reinstating harsh sanctions against Iran. Since then Iran has increased its nuclear activities, violating much of the multi-national pact.

Talks with Tehran – which have been stalled for months – are due to restart in November.

The last few years have seen many countries looking after number one. They have made their own vaccines, they have put up trade barriers, they have put economic growth ahead of fixing the climate crisis. 

Mario Draghi’s point is that this has to stop. The Italian PM is saying that if G20 leaders want to curb global warming, end vaccine inequity, and sort an economic recovery, they have to start thinking and acting more multilaterally. 

And that doesn’t just mean coming to summits. It means – at times – putting wider global interests above narrow national imperatives. That is a big ask because it often involves challenging voters. So far not all world leaders seem ready to do that. 

There remain divisions over whether much wealthier nations are ready to cut carbon emissions, give more Covid vaccines to developing countries, and stabilise volatile energy prices.

The G20 summit will produce many words. But what will matter are its actions, above all on climate change, for that will play a huge part in determining whether the COP26 summit in Glasgow succeeds or fails. Dinosaur tells UN ‘don’t choose extinction’ as part of new climate campaign

COP26 climate summit – The basics

  • Climate change is one of the world’s most pressing problems. Governments must promise more ambitious cuts in warming gases if we are to prevent greater global temperature rises. 
  • The summit in Glasgow is where change could happen. You need to watch for the promises made by the world’s biggest polluters, like the US and China, and whether poorer countries are getting the support they need.
  • All our lives will change. Decisions made here could impact our jobs, how we heat our homes, what we eat and how we travel.

#AceNewsDesk report ……………..Published: Oct.31: 2021:

Editor says …Sterling Publishing & Media Service Agency is not responsible for the content of external site or from any reports, posts or links, and can also be found here on Telegram: https://t.me/acenewsdaily all of our posts fromTwitter can be found here: https://acetwitternews.wordpress.com/ and all wordpress and live posts and links here: https://acenewsroom.wordpress.com/and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#covid19, #iran, #rome, #taxation, #world-leaders

` First there was a `New Currency ‘ called `Bitcoin’ then came `Greed ‘ now comes Taxation ‘ allowing `Greed ‘ to have its own Reward’s

#AceFinanceNews says according to latest news Japan is looking at ways to tax Bitcoin transactions, a report said Tuesday, in the wake of the spectacular failure of the Tokyo-based MtGox exchange after a half-billion-dollar theft.

The finance ministry and the national tax agency are studying possible rules that could govern transactions using the digital currency, the Yomiuri Shimbun newspaper said.

Authorities believe purchases made with Bitcoin can be subject to consumption and corporate taxes, even though the unit is not a legal currency, the Yomiuri said without citing sources.

This latest case of irregularities that has lead to an the recent investigation as cites by Reuters in saying Mt Gox, once the world’s largest bitcoin exchange, filed for bankruptcy in a Tokyo district court on Friday, the company’s lawyer citing ‘outstanding debts of $63.2 million, after mysteriously going offline on Monday.
Investors may have lost all of their virtual coins, as the exchange’s computer system was exposed to fraudulent transactions and technical failures. More on this story at http://wp.me/pzTwj-2tk

Has allowed a way for countries to tax Bitcoin transactions and bring them in line with many other the Monetary Systems controls, as was always wanted by the a number of countries.

This latest round of investigations, has only added fuel to the fire.

#AFN2014

#afp, #bitcoin, #finance, #japan, #mt-gox, #reuters, #taxation