zlb
Member of DD Central
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Post by zlb on Apr 27, 2018 18:01:45 GMT
Can BM pay tax on their income rather than me though? Their fee is their income, isn't it? Unless I've misunderstood. While I accept BM's statement that we cannot deduct fees and hence tax, it does seem to me that we, the investors pay tax on money we don't get and BM end up paying tax again on the same money. In other words double taxation. this is my point, I doubt it's being taxed twice and BM have set it up so that they get income they don't have to pay tax on, because individual investors already have done. It's really quite a significant point. Some seem to think the issue is paying fees; it's not, this is about investors paying tax on money that they don't ever receive. That said, I don't know how businesses pay tax. I don't pay tax on income that is taken as fees on other platforms.
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ashtondav
Member of DD Central
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Post by ashtondav on Apr 28, 2018 7:52:56 GMT
Of course BM pay tax on the fees, or at least that portion of the fees that are in excess of costs and constitute their profit.
Based on some comments here people do not understand they are paying tax on money they do not get.
if you invest £1,000...
gross interest £80
fees -£15
net interest £65.
BUT you pay tax on £80. So for a 20% taxpayer you get £49 in your pocket after tax. Not the £52 you would get if you paid tax on £65.
Its like the bad old days when you couldn’t deduct bad debt.
I will only invest in BM when they have an ISA, then it makes sense. As long as they don’t have any additional charges!
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