Roger Smelly Posted September 5, 2013 Share Posted September 5, 2013 Well I was having a chat to a biker over the MGP, he asked me what was the difference between the isle of man and the uk regarding income tax. He was thinking of moving here but after our chat and I was telling him about living costs etc he said its probably equal once you put in the tax difference. Anyway I have had a little search on the net to see what the difference is and here is the answers I have based this on a yearly salary of £20000 First pic is the UK Tax, second is the isle of man I was quite surprised there isn't that much difference. Link to comment Share on other sites More sharing options...
quilp Posted September 5, 2013 Share Posted September 5, 2013 No surprise here Rog. Link to comment Share on other sites More sharing options...
alibaba Posted September 5, 2013 Share Posted September 5, 2013 A few years ago the personal allowance in the UK was pretty low, like about £3000 and here it was about £8000, but they are pretty much the same now. Link to comment Share on other sites More sharing options...
Roger Smelly Posted September 5, 2013 Author Share Posted September 5, 2013 Well I read somewhere the UK is putting there allowance up to just over £10000 before the next election. I am actually surprised that the gulf between here and the UK is so small. Just goes to show the island isn't that advantageous, once you put in a few trips to the UK your worse off here ? Link to comment Share on other sites More sharing options...
Slim Posted September 5, 2013 Share Posted September 5, 2013 First pic is the UK Tax, second is the isle of man I was quite surprised there isn't that much difference.Haven't you ignored the 50% tax free allowance from the IOM figure making it double what it should be? It's not hard to work out, the allowance is the same but the IOM rate is half. That's ignoring the other benefits too eg mortgage interest, capital gains, stamp duty, inheritance.... Link to comment Share on other sites More sharing options...
Roger Smelly Posted September 5, 2013 Author Share Posted September 5, 2013 I am just trying to show the average person. Not some person in an office earning £40000 a year, more people on the island earn £20000 and below a year and don't have there own house. Plus house prices in the UK are cheaper so your not paying as much per month ? Link to comment Share on other sites More sharing options...
Slim Posted September 5, 2013 Share Posted September 5, 2013 I am just trying to show the average person. Not some person in an office earning £40000 a year, more people on the island earn £20000 and below a year and don't have there own house. Plus house prices in the UK are cheaper so your not paying as much per month ? You've got the comparison wrong by ignoring the allowance on the Iom calc. Nothing to do with the other benefits you're ignoring too. And on your other points, Iom average wage is 30k and the majority are homeowners. Link to comment Share on other sites More sharing options...
wrighty Posted September 5, 2013 Share Posted September 5, 2013 Over here you'll pay about £1000 income tax on an income of £20000. But your point about the difference being small when the higher cost of living here is taken into account is well made. Link to comment Share on other sites More sharing options...
woolley Posted September 5, 2013 Share Posted September 5, 2013 It's a rich person's advantage really because whereas in the UK you move on to the 40% rate at relatively modest earnings, in IOM you only go up to 20% as a max. Other than that, now that allowances have been almost equalised, there is little difference in income tax. Link to comment Share on other sites More sharing options...
Roger Smelly Posted September 5, 2013 Author Share Posted September 5, 2013 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 Link to comment Share on other sites More sharing options...
Slim Posted September 5, 2013 Share Posted September 5, 2013 We all aint earning the average I know that much Brilliant. Link to comment Share on other sites More sharing options...
trmpton Posted September 5, 2013 Share Posted September 5, 2013 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 Link to comment Share on other sites More sharing options...
Roger Smelly Posted September 5, 2013 Author Share Posted September 5, 2013 This isn't isn't about averages its about the gulf between the Isle of man and the UK and how its closing ? I didn't want to start a post about the average salary ? Link to comment Share on other sites More sharing options...
victorian dad Posted September 5, 2013 Share Posted September 5, 2013 Sush, you'll wake up T.J. Link to comment Share on other sites More sharing options...
piebaps Posted September 5, 2013 Share Posted September 5, 2013 This isn't a new thing Rog, even if you've just noticed it http://www.tax-news.com/news/Ernst__Young_TaxOMeter_Compares_UK_IOM_and_Irish_Taxes____404.html This is a three way comparison from 2000/01 Link to comment Share on other sites More sharing options...
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