Uk Income Tax Vs Iom Income Tax

[Slim]

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.

But you said the tax system was geared towards HNW's. That's not true, as demonstrated, someone who earns 20k pays half the tax of someone in the UK. How is that a system that only benefits HNW's?

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.

Fascinating stuff, but nothing to do with the tax system that you derided.

[hboy]

 

 

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.

But you said the tax system was geared towards HNW's. That's not true, as demonstrated, someone who earns 20k pays half the tax of someone in the UK. How is that a system that only benefits HNW's?

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.

Fascinating stuff, but nothing to do with the tax system that you derided.

I didn't deride the tax system, I pointed out that it was set up to attract HNWs which it most obviously is. I also pointed out that, proportionately, HNWs benefit more out of the tax system as they can afford the higher cost of living and pay proportioately less in tax compared to the lower paid.

 

If we had more HNWs here there would be more tax to offer more breaksd at the bottom end - but there isn't.

 

I'm sorry to have to point out the obvious to you Slim.

[Slim]

I didn't deride the tax system, I pointed out that it was set up to attract HNWs which it most obviously is. I also pointed out that, proportionately, HNWs benefit more out of the tax system as they can afford the higher cost of living and pay proportioately less in tax compared to the lower paid.

 

If we had more HNWs here there would be more tax to offer more breaksd at the bottom end - but there isn't.

 

I'm sorry to have to point out the obvious to you Slim.

But they don't pay proportionately less, they pay a higher rate. More HNWs? How many more? How many do we have? Do you know?

[Albert Tatlock]

 

I didn't deride the tax system, I pointed out that it was set up to attract HNWs which it most obviously is. I also pointed out that, proportionately, HNWs benefit more out of the tax system as they can afford the higher cost of living and pay proportioately less in tax compared to the lower paid.

 

If we had more HNWs here there would be more tax to offer more breaksd at the bottom end - but there isn't.

 

I'm sorry to have to point out the obvious to you Slim.

But they don't pay proportionately less, they pay a higher rate. More HNWs? How many more? How many do we have? Do you know?

Last count there were around 120 paying a max of £120K a year I heard. So as a proportion of all income tax paid, they pay a lot less as a group than the lower paid do.

 

Hence HNWI are paying proportionaly less than the lower paid. Not rocket science is it?

[Slim]

Last count there were around 120 paying a max of £120K a year I heard. So as a proportion of all income tax paid, they pay a lot less as a group than the lower paid do.

 

Hence HNWI are paying proportionaly less than the lower paid. Not rocket science is it?

Only if you consider those hitting the cap to be the only hnw's. That's a taxable income of over £600,000 a year from non GC events. Perhaps we're mixing definitions, but I'd consider more taxpayers than those 120 are HNW's on the island. Also, given that the higher rate is double, they'd still have to earn twice the 120k cap to be paying proportionately less, right?

[hboy]

 

 

 

I didn't deride the tax system, I pointed out that it was set up to attract HNWs which it most obviously is. I also pointed out that, proportionately, HNWs benefit more out of the tax system as they can afford the higher cost of living and pay proportioately less in tax compared to the lower paid.

 

If we had more HNWs here there would be more tax to offer more breaksd at the bottom end - but there isn't.

 

I'm sorry to have to point out the obvious to you Slim.

But they don't pay proportionately less, they pay a higher rate. More HNWs? How many more? How many do we have? Do you know?

The ultra HNWs pay only £120,000 a year. If you earned £7,000,000 last year £120,000 in tax is proportionately way less than someone earning £15,000 paying 10% isn't Slim?

 

Also under that band if you earn £100,000 and pay 20% in tax you can afford to absorb the higher cost of living, if you earn £15,000 a year and pay 10% in tax all your other day to day expenses of living here are proportionately higher to you relative to your income so your net disposable income is likely, proportionately, to be much lower. Isn't it?

 

As it said under £35k a year here I'm sure the true net disposable income you have here, compared to the UK is around the same as the tax breaks you get are destroyed by the higher cost of living and costs to get off etc.

[Slim]

Right, the moving goal posts of what constitutes a hnw are throwing me off a bit. Do you think there's many people who earn 7 million taxable in a single year?

 

I agree costs of living are a bit higher. I don't agree our tax system is unfair to lower paid workers or that they pay proportionally more than earners over the average.

[Lxxx]

Taking aside mortgage/rent I don't think the daily cost of living is hugely different than the UK. Sure there are some parts that are more expensive but they are offset by others. All in all it's a nice place to live with lovely scenery, without the large city amenities, granted. But so are the Cotswolds and try living there on a modest wage. If we compare it to the north west of England then maybe yes, to southern England not really.

[hboy]

Right, the moving goal posts of what constitutes a hnw are throwing me off a bit. Do you think there's many people who earn 7 million taxable in a single year?

 

I agree costs of living are high. I don't agree our tax system is unfair to lower paid workers or that they pay proportionally more than earners over the average.

Moving what goal posts? Do you ever cease to be a massive bell-end when you can't properly defend some of the gibberish you post?

 

Our costs of living here are high, or are the costs of getting off Island, obviously those costs hit the lower earners disproportionately than higher earners who can absorb more of these costs as in proportion to their salaries those costs are lower. That is quite clear isn't it Slim?

[piebaps]

http://www.gov.im/lib/docs/treasury/incometax/consultations/informationpack.pdf

 

Some IOM Tax data here.

[trmpton]

Cost of some things is more than some areas of the UK, I don't think housing/rent is massively more than you would have to pay in the areas where you would have to live to benefit from the low costs.

 

Tax here is significantly less than you would pay in the Uk earning the same amount in any wage bracket. Yes, the difference gets greater the more you earn.

 

Fact is, compared to most areas of the UK the high earners earn similar or less than they might in Manchester, London etc.

 

The part of the population who typically earn more than they would in the UK are those on 30k and less. Accross there is a lot more unemployment, and more zero hour contracts, and a lot of minimum wage positions.

 

Like it or not and believe it or not, if you looked at everyone here earning less than 30k, most of them would have to take a significant pay cut to do the same job in the UK.

[Roger Smelly]

The problem with the lowest paid on the island is the fact that they may pay a little tax, but the cost of living hurts them the most.

[trmpton]

The problem with the lowest paid on the island is the fact that they may pay a little tax, but the cost of living hurts them the most.

And they get paid more than they would in the UK. So are still better off than if they lived over there

[Lxxx]

It all boils down to where you'd like to live. Having just spent a fortnight in the UK and braved the horrendous morning traffic into town, heard of murders and stabbings on the local radio and had to drive around a grey concrete jungle of a city daily it was refreshing to come back here for my leisurely drive to drop the daughter off at school this morning, the local crime report on Energy FM was a man guilty of using threatening language in Douglas on Saturday night and now off to walk the dogs on the beach.

Yes living here might mean we can't eat out as much as we'd be able to across, or we compromise on other things, but all things considered we don't have it bad at all here. We just pay a small premium for it.

[NeverAgain]

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?

 

You could call it a red herring, but I just wanted to make sure salary differences where included within the comparison.