At 6% per annum Pre Income Tax a capital amount produces £5400.00. a day Post Income Tax.
1. What it the capital amount involved.
2. How much Income Tax is paid per day.
JB.
A Little Brainteaser.
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Primrose
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Sorry, can't help you Johnboy. My grey cells packed up the day I retired !! Actually, this sounds like one of those tests I always failed on, i.e. If two taps fill a bath of ten gallons in one hour, how many taps will it take provide enough water for the British Army to shower in, using 20 litres of water a minute !! Somebody on here must have some brains though!
Primrose, you set that one up beautifully for me and then ruined it for me in the same sentence !
I was GOING to say, it depends whether you've got the plug in or not.......!
I was GOING to say, it depends whether you've got the plug in or not.......!
What sunshine is to flowers, smiles are to humanity. The good they do is inconceivable....
I wish I could get 6% on my capital. I don't pay any income tax as I am several thousand tax allowance unused. I recently changed to Ing Direct, they notched me up another 1/2% which is all to the good. We all pay tax on almost everything we buy, that is called "indirect taxation"!
Never get into bad debt on credit cards, there is far cheaper loan money elsewhere.
JB, the question is incomplete without knowing the individual's tax rates.
Never get into bad debt on credit cards, there is far cheaper loan money elsewhere.
JB, the question is incomplete without knowing the individual's tax rates.
Sorry Allan you are wrong as any capital sum of this magnitude that is personal income is all taxed at the highest rate and any ajustments made on other income. It may be that at the end of the year you may be due a rebate. (as though you really need it!)
I feel that you may be able to work it out now.
It was meant to be as a bit of fun but obviously it is not appreciated.
JB.
BTW Allan 6% is a poor rate for this amount. A High St Bank would give you that rate.
I feel that you may be able to work it out now.
It was meant to be as a bit of fun but obviously it is not appreciated.
JB.
BTW Allan 6% is a poor rate for this amount. A High St Bank would give you that rate.
Wrong in what respect. In your message, who is "You"?If you are referring to my finances, my income is well below the taxation level (£142 p.w., £7420 p.a.)so I fill in form R85(2006) which is available online and send that in, then there is no deduction of tax at source from my investments.
JB you are forgiven. I didn't want another argument online but the word "wrong" looked threatening. Has anybody come up with an answer to the original question. I would want to know the standard rate of tax to do it, a little algebra is wanted, I got 94% for algebra at school, as it is I shan't bother.
I think the word earning is inappropriate, grabbing is about right. I wounder how much he/she deserves for the actual effort. There are too many people in this world living off the backs of others rather than by their own efforts or merits.
I suppose that I didn't earn the money to buy the 'farm' it was really the difference between what we got for the previous house and what we had to pay for this one, just because prices here were lower. The previous one was actually paid for mostly by the drop in money value between buying and selling, £2550 became £100,000, not bad as we had the use of it.
Allan
I think the word earning is inappropriate, grabbing is about right. I wounder how much he/she deserves for the actual effort. There are too many people in this world living off the backs of others rather than by their own efforts or merits.
I suppose that I didn't earn the money to buy the 'farm' it was really the difference between what we got for the previous house and what we had to pay for this one, just because prices here were lower. The previous one was actually paid for mostly by the drop in money value between buying and selling, £2550 became £100,000, not bad as we had the use of it.
Allan
Sorry - can't ignore my instincts to answer this one!
£5,400 per day interest @ 6%
Therefore, total annual interest = £5,400 x 365 = £1,971,000.
Capital = £1,971,000/0.06 = £32,850,000
Assume personal allowance is insignificant and is, therfore, ignored.
So tax per day @ 40% = £5,400 x 40% = £2,160. Although, this depends on whether you're UK resident and/or domicile, whether the funds are offshore or onshore and, of course, whether the monies are in a financial institution and Her Majesty's Revenue & Customs know about them!!!! Various other permutations, but that would be REALLY boring! I'm sure Johnboy's got a different answer and a barrel full of red herrings waiting.....
£5,400 per day interest @ 6%
Therefore, total annual interest = £5,400 x 365 = £1,971,000.
Capital = £1,971,000/0.06 = £32,850,000
Assume personal allowance is insignificant and is, therfore, ignored.
So tax per day @ 40% = £5,400 x 40% = £2,160. Although, this depends on whether you're UK resident and/or domicile, whether the funds are offshore or onshore and, of course, whether the monies are in a financial institution and Her Majesty's Revenue & Customs know about them!!!! Various other permutations, but that would be REALLY boring! I'm sure Johnboy's got a different answer and a barrel full of red herrings waiting.....
Hi Vivien,
Thank you for at least having a stab at it! Apparently the only one to be brave enough.
The Answers are :- 1.£54,750,000. 2. £3600. respectively.
You are correct about the annual turnover which represents 3.6% (which is 6% less 40% tax)
Divide £1,971,000. by 3.6 gives you 1%. The rest I am sure you do not need me to tell you.
Had you won the Euro Lottery the week before last that is what you would have won.
That seems an obscene amount of money but it is even larger now as nobody won it then nor the next week.
What an earth would you do with it all????
JB.
Thank you for at least having a stab at it! Apparently the only one to be brave enough.
The Answers are :- 1.£54,750,000. 2. £3600. respectively.
You are correct about the annual turnover which represents 3.6% (which is 6% less 40% tax)
Divide £1,971,000. by 3.6 gives you 1%. The rest I am sure you do not need me to tell you.
Had you won the Euro Lottery the week before last that is what you would have won.
That seems an obscene amount of money but it is even larger now as nobody won it then nor the next week.
What an earth would you do with it all????
JB.
And the moral of this story is...read the question! Or alternatively, give up exam revision and reading KG forum at the same time!
As you quite rightly point out, though, JB, what on earth do you do with it? It brings its own problems and twist people around.
Here's the next teaser...how many allotments could you rent with that much money? (only joking!)
As you quite rightly point out, though, JB, what on earth do you do with it? It brings its own problems and twist people around.
Here's the next teaser...how many allotments could you rent with that much money? (only joking!)
what would i do with it,
set up a workshop to convert "chelsea tractors" , remove the rear propshaft so the diesel engine (running on veg oil) only drives the front wheels. drive the rear axle with an electric motor and battery pack, coupled with a home wind turbine set up to charge the batteries overnight. on short jouneys the vehicle would be running on wind generated electric power with the option of veg oil for longer journies. must be better than an electric bicycle
set up a workshop to convert "chelsea tractors" , remove the rear propshaft so the diesel engine (running on veg oil) only drives the front wheels. drive the rear axle with an electric motor and battery pack, coupled with a home wind turbine set up to charge the batteries overnight. on short jouneys the vehicle would be running on wind generated electric power with the option of veg oil for longer journies. must be better than an electric bicycle
Hi Richard,
I'd ban the bloody things altogether!!!Much easier!!
JB.
Hi Vivien,
How many standard allotments to the acre? The thing is that I know what they were originally but it seems that everybody's allotments seems to be a different size nowadays! An Allotment used to be 1/20th of an acre.
Certainly with a sum like that you could set up a chain of private allotments with all the modern facilities but the only people who would stop that are the Local Authorities. They would soon find some reason why it could not be allowed!
JB.
I'd ban the bloody things altogether!!!Much easier!!
JB.
Hi Vivien,
How many standard allotments to the acre? The thing is that I know what they were originally but it seems that everybody's allotments seems to be a different size nowadays! An Allotment used to be 1/20th of an acre.
Certainly with a sum like that you could set up a chain of private allotments with all the modern facilities but the only people who would stop that are the Local Authorities. They would soon find some reason why it could not be allowed!
JB.