How Much Tax Do We Actually Pay?

How much tax will you pay over a lifetime and what does this number tell us about who should pay more?

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This video does not represent financial advice, and I am not a financial advisor. When investing, your capital is at risk. Investments can rise and fall and you may get back less than you invested. Past performance is no guarantee of future results.

Timestamps:
00:00 - Certain
00:40 - The numbers
03:48 - More to the numbers
05:41 - Sponsor
06:37 - What do the rich pay?
09:07 - Capital gains
10:43 - Issues with capital gains.

[alexyordanov]

Best finance YouTuber out here. Please don’t become a sellout like the rest of them 😅

[lewisdelicata]

Such a refreshing approach to responsibly presenting information. The way you present information, acknowledge the possible biases, and then quite neatly break it down in a methodical fashion, is absolutely spot on.

[joshholland]

I reckon I’m already past 590 miles of bog roll and I’m 26

[joshlilley]

Hi Damien, just want to say i think your videos are pretty spot on, no bs and let us know what we need to know, keep doing what you’re doing, helping more than you can imagine👍🏽

[versaceviper]

How about we talk about the true rate of tax for everyday life:

Income tax
National insurance tax
Road tax
Council tax
Value added tax
Fuel duty tax
Sugar tax

AND MORE!

[DanCarsi]

Your videos are actually top class. I learn something different every video I watch on your channel

[deathfromabove]

I’m just happy HMRC have just announced fractional shares are allowed now

[AndySmartInvesting]

Damien, as always, fantastic video! Your production quality keeps pushing the benchmark higher 😂I’ve honestly never been more intrigued to see how this new budget will pan out. It could be a challenging one, but there’s not much we can do about it, we just need to knuckle down and crack on!

[vvwalker]

Some good comments on CGT in this video, much better than some of the gibberish you get on other channels 👍

[kenville]

Income tax
National insurance
"Employer's" national insurance
Council tax
VAT
Insurance tax
Energy tax
Fuel tax
Road tax

I'm sure there's some more. I think most people will be surprised to learn they are losing over half their wages in direct and indirect taxes. I say wages because this mostly impacts employed working people on PAYE who pay higher rates of tax than other people and can't dodge any of it.

[davemitchell]

When Martin Lewis retires you’re the next money guru for Britain. We’re going to need you🙀

[elliotm]

Bosh. Super interesting and informative. Nice one

[monkey]

Too bloody much. They should let me look after the tax money, I'll keep it safe.

[martincowie]

Excellent explanation, I look forward to your review of the budget! Perhaps the Beeb or Sky could save themselves a fortune and just play your videos to the general public. Thanks and keep up the great work.

[elliot]

Another great video. I think it's worth reiterating something you briefly mentioned.

The comparison of years is a great one but it's hardly fair. 20 years working in a labour intensive career surely can't be compared to 20 years of sitting on an inherited fortune, something that doesn't even require to be of working age or under retirement age.

[tombateman]

What's wrong with taxing all income (salary, capital gains, making a bit of money on the side) at the same rate. I lived in Sweden for 10 years and this is basically how it works there, very simple and very clear, pretty much no one has an accountant as it's so easy to do your own taxes, everything you earn counts as income and is taxed as such. This even includes tax on profit on primary residence. Though there is a scheme to defer this as long as you buy another property and then pay it when you cash out/die

[Derek-Trotter]

Everyone pays the inflation tax at 100%, but, inflation is an asset owner's dream.

[migsteele]

Such an important thing to highlight! Cutting through and making things clear, amazing work.

[ezra]

Really interesting and well presented. First vid I've seen of yours, interested to check out the rest once I'm done with this!

[JoashD]

I would rather pay a couple of extra percent tax on my income than lose my savings & ISA allowance. I'm nervously awaiting the budget...