[yzydserd]

> Passive income is taxed at a much lower rate than working income in the U.K, and that includes property rents (after paying expenses like a managing agent)

Is that right? I thought that income from property rents (after paying expenses like a managing income) had income tax levied like any other income.

[chgs]

But honest day’s work income has an additional payroll tax which totals about 20% marginal for the majority of people (plot about 60/40 between employer and employee).

Far better to be paid in shares.

[yzydserd]

Oh yes National Insurance Contributions. They’re a bit messed up imho.

The employee pays 8% to NICS on earnings between 12.5 and 50k. For income over 50k, it’s 2%.

The employer pays 13.8%, and some people assert the employee ultimately pays the cost through a lower salary.

[chgs]

Well at my company it comes from the same budget. Doesn’t matter how you hide it.