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Uk Income Tax Vs Iom Income Tax


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#16 Slim

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Posted 06 September 2013 - 05:47 AM

This isn't isn't about averages its about the gulf between the Isle of man and the UK and how its closing ?

But you got it wrong, didn't you?

#17 Amadeus

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Posted 06 September 2013 - 06:25 AM

I always thought the tax advantages for Otto Normalverbraucher were pretty much wiped out by higher cost of living, with ManxGas, MEA and a lot of shops raping your wallet as they please. Plus add to that travel costs if you want to get anywhere with decent shopping or nightlife (or just the extra trip you need for every holiday abroad) and the ridiculous house prices and any advantage would be gone.


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#18 vee_dub

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Posted 06 September 2013 - 07:40 AM

You're not comparing like with like there. Not sure if this is same point Slim was trying to make. Taxable income is income once personal allowances have been deducted. Gross income is income before any deductions. In the UK example, a Gross Income of £20,000 is used. In the IOM example, a taxable income of £20,000 is used, these are not the same.

 

In order to compare on a like for like basis, in the IOM example you need to deduct the personal allowance (£9,300) from the £20,000 figure before taxing it. This would give a revised IOM tax liability of £1,090 (£10,500 x 10%; £200 x 20%) which does compare favourably to the UK figure of £2,112.

 

But I do agree with the point that when all things are considered, most people except the super rich would be no financially better off by living here than in the UK, especially when you consider the ass fucking Manx residents get on basic foodstuffs, domestic fuel, petrol/diesel, houses and off-island travel.

 

For me it comes down to a question of whether you want to pay perhaps a bit more and enjoy the quality of life in the IOM (although whether that will continue into the future who knows?) or if you want to live in a shit hole like the UK.


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#19 Cambon

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Posted 06 September 2013 - 09:07 AM


But I do agree with the point that when all things are considered, most people except the super rich would be no financially better off by living here than in the UK, especially when you consider the ass fucking Manx residents get on basic foodstuffs, domestic fuel, petrol/diesel, houses and off-island travel.

We may get "ass fucked" over those things. The uk get "ass fucked" over insurance, rates and various other things. In addition, petrol may be 5% more expensive, but the average mileage per year over here is around 8000, uk is around 12,000. So over there it may be a bit cheaper, but you use 50% more of it. That is just one example of a hidden cost to living in uk.

#20 woolley

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Posted 06 September 2013 - 09:10 AM

Slim come on now, how many people do you know on £30k a year ?
 
Most people I know are £20k a year, plus like I said take the car away a few times a year or a few flights soon start to make a difference.
 
That's not including the savings on food and other day to day bills that are cheaper in the UK.
 
We all aint earning the average I know that much


You don't seem to know how average work though.

I know people who earn 20k, 30k , 50k, 70k, 250k.

I know more who earn 20k than 250k, but an still surprised the average is only 30.

The tax benefits apply to people in the high band, which really isn't that far off the average persona

Average £30k? We are talking general economy here, not just government employees. There are a few very high flyers that totally skew the average. Many, many people are £20k to £25k, and in quite pressurised jobs too.



#21 Slim

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Posted 06 September 2013 - 09:19 AM

Average £30k? We are talking general economy here, not just government employees. There are a few very high flyers that totally skew the average. Many, many people are £20k to £25k, and in quite pressurised jobs too.

Sigh.

Anyway, that point really isn't that important. He got his calculation wrong because he ignored the allowance for the manx part. The benefits still exist for the 20k salaary, as they're only paying 10% for the majority of their taxable income.

As cambon said, cost of living isn't straight forward. I spend virtually nothing on petrol or heating so my costs are pretty low. I don't find other essentials that much more expensive now we have so many UK stores here, prices in places like TK Max, burtons, Tesco, etc seem to match the UK stores pretty closely (you can check the prices online).

#22 NeverAgain

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Posted 06 September 2013 - 09:50 AM

I've looked at moving back to the UK every year for the last 5 years, it doesn't work out any cheaper at all. In my current job I get paid 19K, if I did the same job in the UK i'd earn 14k and i'm sure its the same for a lot of other people aswell.



#23 ballaughbiker

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Posted 06 September 2013 - 10:43 AM

OK so Mr sort of average on £20k saves gnats over £1000 a year in tax. The rates vs. CT saving is getting smaller and smaller too. I bet Mr Average probably burns off the tax saving in about 3 months so 75% of the time he's worse off by living here. 

 

You can buy at Uk prices on the net which is very effective until you want something > 2kg / aerosol / liquid etc etc and then it really costs. Utilities and fuel are significantly higher but, hey, if you don't like it, there's an expensive boat in the etc etc. 


Edited by ballaughbiker, 06 September 2013 - 10:43 AM.


#24 Norseman

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Posted 06 September 2013 - 11:01 AM

We all aint earning the average I know that much

 

I've heard that 50% of us are are earning below the average wage - it's absolutely disgusting.



#25 Albert Tatlock

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Posted 06 September 2013 - 11:08 AM

I think it would be more interesting and realistic to compare, say two single guys, on £30K a year - one in Manchester and one in  Douglas spending on the same things:

 

Or do we pick an area where house prices are the same for the comparison?

 

Food

Rent (2 bedroom house)

Utilities

Nights out

Their actual taxes/NI/spends

 

etc.

 

And then maybe do the same for a married couple, both on £30K?



#26 Ron Burgandy

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Posted 06 September 2013 - 11:13 AM

We all aint earning the average I know that much

 

I've heard that 50% of us are are earning below the average wage - it's absolutely disgusting.

 

You know how averages work don't you?



#27 The Old Git

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Posted 06 September 2013 - 11:26 AM

We all aint earning the average I know that much

 

I've heard that 50% of us are are earning below the average wage - it's absolutely disgusting.

I'd guess it's more than 50% earning below the average



#28 ballaughbiker

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Posted 06 September 2013 - 12:02 PM

This is the current exchange rate http://tinyurl.com/lwq6gsn

 

I'm in a buying mood.... or should we sell whilst its still worth something?


Edited by ballaughbiker, 06 September 2013 - 12:12 PM.


#29 Norseman

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Posted 06 September 2013 - 12:36 PM

 

We all aint earning the average I know that much

 

I've heard that 50% of us are are earning below the average wage - it's absolutely disgusting.

 

You know how averages work don't you?

Yes. What about sarcasm, nobhead?


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#30 wrighty

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Posted 06 September 2013 - 08:27 PM

 

We all aint earning the average I know that much

 

I've heard that 50% of us are are earning below the average wage - it's absolutely disgusting.

I'd guess it's more than 50% earning below the average

Tempted to turn this into a statistics thread, but I'll resist.  Anyone interested look up the difference between median and mean - you need to specify what sort of average you're talking about.

 

PS I recognise the sarcasm in Norseman's and Old Git's posts, but I suspect many don't!


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