Why Be Afraid of Big Tax Bills?

You hear it all the time. People complaining about the huge cheque they've had to write out to the taxman. But why? Surely a big tax bill means that your income is even higher?

Similarly, people spend a lot of time and effort trying to evade taxes which could probably be better spent in other areas increasing their income. While it's financially sensible to ensure you don't overpay your tax bill, it's insane to try to get out of it all together.

I do understand why people feel so upset. After all, taxes and death are the two certainties in life, and some people try their level best to avoid both - none succeed to any great degree as far as I know. If your gross income is £300,000, roughly £117,500 of that will go to the taxman, so the bill seems huge!

Perhaps we all need to change our attitude, which is everything according to Jeff Keller in his excellent book.

Instead of fearing a huge tax bill, we ought to be aspiring to making it bigger each year - but without squandering money. This will replace the negativity associated with taxes with a healthy, positive attitude. "Hey, my tax bill was £250,000!" said with evident pride means that someone's income is a whole lot more.

Prudent budgeting will ensure that you have the money to pay the bill and a good accountant will ensure you only pay what's due.

It's all pretty obvious stuff really. Except that so many people have a 'Woe is me' outlook at tax time.

What is frustrating is hikes in the basic rates you pay. There's not a lot you can do about that, so just focus on earning more and more. And let's see if we can change attitudes and strive to pay more tax next year!

Steve Thomas
www.SeeForYourself.tv