Uk Income Tax Vs Iom Income Tax

[dave1978]

Any saving, if any, is more than stolen by Manx Gas or any other company with 'manx' somewhere in it's title.

[woolley]

I think Original Manx Fudge is very reasonable.

[NeverAgain]

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:

 

But would they be doing the same job? The guy in Manchester could probably be on £35k-£40 a year on the IOM, so its not a like for like comparison?

 

The wages on the IOM for most jobs are on par with London where the living costs are significantly higher than here.

[ballaughbiker]

The wages on the IOM for most jobs are on par with London

I must have been in the wrong jobs then... Mind you one or two had 'Manx' in the title (post #31)

[Albert Tatlock]

 

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:

 

But would they be doing the same job? The guy in Manchester could probably be on £35k-£40 a year on the IOM, so its not a like for like comparison?

 

The wages on the IOM for most jobs are on par with London where the living costs are significantly higher than here.

You could do it by average salary comparisons...there's all kinds of jobs here as there are all kinds of jobs in other specific places. Alternatively, pick an IT trade, a nurse or some other specific advertised job and do a comparison?

 

[Amadeus]

 

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.

That comparison doesn't fly. All IOM trips are short distance. Engine often doesn't warm up properly, no real motorway style cruising which is most efficient for fuel consumption, and the short distance stuff coupled with bad roads also wrecks the car quicker than a UK equivalent, so more wear and service costs.

[woody2]

bring MOTs in and we will see how knackered the cars are? i have always found insurance cheaper on the mainland

[NeverAgain]

 

 

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:

 

But would they be doing the same job? The guy in Manchester could probably be on £35k-£40 a year on the IOM, so its not a like for like comparison?

 

The wages on the IOM for most jobs are on par with London where the living costs are significantly higher than here.

You could do it by average salary comparisons...there's all kinds of jobs here as there are all kinds of jobs in other specific places. Alternatively, pick an IT trade, a nurse or some other specific advertised job and do a comparison?

 

by_City.jpg

 

Think IT would be the most appropriate, most people I know outside of retail are either in IT or working within a bank. A nurse on the island earns more than the UK equivalent, but I'm struggling to find any jobs advertised on the IOM job centre that states the salary, most just say dependent on experience.

[Lxxx]

As someone who has my own Ltd Co for work the 0% Corporation Tax is a huge incentive to be based here. How long that will be able to continue I'm unsure though.

[Albert Tatlock]

 

 

 

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:

 

But would they be doing the same job? The guy in Manchester could probably be on £35k-£40 a year on the IOM, so its not a like for like comparison?

 

The wages on the IOM for most jobs are on par with London where the living costs are significantly higher than here.

You could do it by average salary comparisons...there's all kinds of jobs here as there are all kinds of jobs in other specific places. Alternatively, pick an IT trade, a nurse or some other specific advertised job and do a comparison?

 

by_City.jpg

 

Think IT would be the most appropriate, most people I know outside of retail are either in IT or working within a bank. A nurse on the island earns more than the UK equivalent, but I'm struggling to find any jobs advertised on the IOM job centre that states the salary, most just say dependent on experience.

I'd agree on that...so assuming certain IT jobs are pretty much paid the same in Manchester and IOM, why not work on a typical role payiong say £35K? Once you get to a certain level, I don't IT roles on the island are paid that much differently between the two locations.

 

However, isn't all this a red herring? Surely what is important is a simple comparison - a simple table of what the outgoings are in two locations (IOM v Manchester say). If it is £2K more expensive to live here and you are £2K up on your salary v a similar Manchester job then it is straightforward to work out where you are better off?

[Albert Tatlock]

Here's an 'interesting' comparison site between IOM and Manchester (and others)...needs blanks filling in though, and may contain some rubbish.

[hboy]

Lots of the comments here show many of the underlying problems the Island has in balancing its books. If you are earning under £35k I don't think the UK is any more expensive now taking into account the high cost of living here, average Manx mortgage level compared to the North of England, the cost of getting on or off the Island etc, etc.

 

As you go up the earnings bracket from here then the costs sort of shift in your favour as the tax differential (18% compared to 40% in the UK) starts to make up for the fact that your cost of living is higher here, and so is your mortgage (which you get relief on here which you don't in the UK).

 

The problem is that the average wage here is around £30,000 so most people don't really benefit that much from living here at the end of the day. We are also stuck providing healthcare and all the other services to these people, and if government starts to peel this back then it tips the balance to people considering returning to the UK.

 

Our problem is that We have a tax system that's geared towards being atttractive to HNW individuals with proportionately few HNWs actually living here so the average wage earner is just getting screwed day to day by paying more for everything else, except income tax.

[Roger Smelly]

hboy you have basically said what I was thinking, the ones that are paying more tax is in the £18000 to £30000 bracket.

 

once you get above that you have more disposable income.

 

Maybe they are trying to turn the Isle of Man into the next Monaco ?

[Slim]

Our problem is that We have a tax system that's geared towards being atttractive to HNW individuals with proportionately few HNWs actually living here so the average wage earner is just getting screwed day to day by paying more for everything else, except income tax.

But that's just not true. Lower earners pay the bulk of the tax at 10% which is HALF the UK's rate. What part of half don't you or Roger Smelly understand?

[hboy]

 

 

 

 

 

Our problem is that We have a tax system that's geared towards being atttractive to HNW individuals with proportionately few HNWs actually living here so the average wage earner is just getting screwed day to day by paying more for everything else, except income tax.

But that's just not true. Lower earners pay the bulk of the tax at 10% which is HALF the UK's rate. What part of half don't you or Roger Smelly understand?

It is true, despite the fact they are paying 10% tax on the first part of their income they are also paying more for bread, milk, petrol, food, property rental, electricity, gas and just about everything else. And having to pay boat and plane fare to get off. In the UK they might pay a bit more tax but they could live way, way cheaper than they do here so I don't think its any cheaper at all living in the IoM if you earn under £35k. Especially if you're now paying to see your doctor and all the other bollocks they have lined up.

 

Don't forget if you're earning £20k a year at 10% tax, 10% of that is only £2000 a year, and your at least paying £2000 a year more for food, electricity, gas, rent, petrol etc than you would in the UK so if you moved to the UK and paid 20% tax you'd probably save at least £2000 a year in day to day costs. It really does not make any difference to your net disposable income.