|
Re: Just how bad is the UK?
Originally Posted by Garfielduk
As I am an Accountant I was quite keen to see what the difference in income tax rates were like between the 2 countries and found that someone on £30k here pays an effective rate of around 27% and in Canada someone earning a similar amount would pay around 20%, that's fairly clear cut to me. If you go up a little to say £40k the UK rate is around 25% and the Canada one 22%. It means that the lower earners pay a lot less but as you earn more the gap becomes less because of how the two systems work until of course the 40% uk rate kicks in and then it can go back upto around 30% of gross income and the Canadian one is at 25% for a similar salary. You can see from this that the gap can vary quite a lot (between 3% and 7%) as it depends on exactly how much your salary is.
To do this comparison I assumed £30000 = $60000 Oh BTW this was purely for Ontario province and took account of federal and provincial taxes Is the gap much smaller/non-existant for higher income brackets, though? Say, for example, well over $100k? |
Re: Just how bad is the UK?
Originally Posted by Garfielduk
As I am an Accountant I was quite keen to see what the difference in income tax rates were like between the 2 countries and found that someone on £30k here pays an effective rate of around 27% and in Canada someone earning a similar amount would pay around 20%, that's fairly clear cut to me. If you go up a little to say £40k the UK rate is around 25% and the Canada one 22%. It means that the lower earners pay a lot less but as you earn more the gap becomes less because of how the two systems work until of course the 40% uk rate kicks in and then it can go back upto around 30% of gross income and the Canadian one is at 25% for a similar salary. You can see from this that the gap can vary quite a lot (between 3% and 7%) as it depends on exactly how much your salary is.
To do this comparison I assumed £30000 = $60000 Oh BTW this was purely for Ontario province and took account of federal and provincial taxes - the exchange rate can easily swing enough to disrupt the calculation - direct taxation is a small fraction of overall taxation - people moving between countries do not usually earn the same amount - the numbers don't account for the regressive nature of tax in Canada. One you get beyond an income of $100,000 small time tax avoidance is worthwhile, once your income exceeds $500,000 big time tax avoidance is worthwhile. At each milestone the tax rate drops. I expect the same is true in the UK but have lost track - taxes in different countries pay for different things - tax breaks in different countries vary, in Canada I've always had deductions for wife, children and mistress, they're not all available in the UK - customs vary, in the UK wives often work, here they tend not to, so they're deductible - tax rates don't directly affect quality of life. People give up on Canada because of family issues, the weather, lack of a job or because they couldn't get laid. They don't do so because they had to pay two points more income in the middle band. |
Re: Just how bad is the UK?
Originally Posted by Calgal
Thanks for that - very interesting! Of course, you'll get some along shortly nit picking about stealth and hidden taxes etc; but I think it's swings and roundabouts at the end of the day. All I can say is, what you've explained above definitely 'fits' with our experience. We have more disposable income, for sure!
Is the gap much smaller/non-existant for higher income brackets, though? Say, for example, well over $100k? Not sure if Garfield factored that in or not Also sales taxes are lower in canada too, although more widely applied. dbb makes a bunch of valid points I suppose. In the big scheme of things taxes broadly similar, and are neither a deal make or deal breaker, nor should they be. |
Re: Just how bad is the UK?
Oh, and tax rates and things financed vary by province. Quebec, with high taxes, is a good deal if you have lots of small children and can use the state funded daycare. Alberta would be better for a gay couple not planning to adopt.
|
Re: Just how bad is the UK?
Originally Posted by Calgal
Thanks for that - very interesting! Of course, you'll get some along shortly nit picking about stealth and hidden taxes etc; but I think it's swings and roundabouts at the end of the day. All I can say is, what you've explained above definitely 'fits' with our experience. We have more disposable income, for sure!
Is the gap much smaller/non-existant for higher income brackets, though? Say, for example, well over $100k? And to answer your question $150000 attracts a rate of around 29% effectively and £70000 is 33.5%, £80000 is 34.5%. In actual fact you can ignore the exchange rate scenario really, it is just comparing figures each side of the water and as you can see whether it is £70k or £80k you compare the gap is still there. |
Re: Just how bad is the UK?
Originally Posted by iaink
Its probably greater as you are still paying NICs in the UK long after you max out in Canada.
Not sure if Garfield factored that in or not Also sales taxes are lower in canada too, although more widely applied. dbb makes a bunch of valid points I suppose. In the big scheme of things taxes broadly similar, and are neither a deal make or deal breaker, nor should they be. I am not going to get into the why's and wherfores of other taxes as it was just disposable income I wanted to compare. |
Re: Just how bad is the UK?
Originally Posted by Garfielduk
You're dead right dbd is not picking already, I wonder what accounting qualifications she has ?
|
Re: Just how bad is the UK?
Originally Posted by Tangram
More tax .... ? Are you sure ?
I'm not talking about a total of taxes for a "high earner"; just what taxes are involved in owning an SUV, BTW. |
Re: Just how bad is the UK?
Originally Posted by dbd33
Nit picking would be finding small details wrong with your calculations. I'm saying the exercise is pointless, one can learn nothing from it and that studying such details reflects an inability to see the wood for the trees. So, yes, I'm not picking.
|
Re: Just how bad is the UK?
Originally Posted by dbd33
Alberta would be better for a gay couple not planning to adopt.
|
Re: Just how bad is the UK?
Originally Posted by Souvenir
LOL!!!!!
|
Re: Just how bad is the UK?
Originally Posted by dbd33
Alberta would be better for a gay couple not planning to adopt.
|
Re: Just how bad is the UK?
Originally Posted by iaink
Right up until they ran into the wrong sort of Redneck.
|
Re: Just how bad is the UK?
Originally Posted by Garfielduk
You're dead right dbd is nit picking already, I wonder what accounting qualifications she has ?
And to answer your question $150000 attracts a rate of around 29% effectively and £70000 is 33.5%, £80000 is 34.5%. In actual fact you can ignore the exchange rate scenario really, it is just comparing figures each side of the water and as you can see whether it is £70k or £80k you compare the gap is still there. The biggest difference comes in the deductible amounts and the non refundable tax credits (as dbd33 said). I think I just agreed with him on something :scared: |
Re: Just how bad is the UK?
Originally Posted by Cowtown
It looks like you forgot to include your provincial tax rates here. The 29% you quote on that income is the federal rate.
The biggest difference comes in the deductible amounts and the non refundable tax credits (as dbd33 said). I think I just agreed with him on something :scared: You're obviously not a financial person as you are wrong ! There are 3 bands of federal rates and 3 bands of provincial rates and they kick in at different levels of income and there aint no 29% band :) |
| All times are GMT -12. The time now is 11:14 pm. |
Powered by vBulletin: ©2000 - 2026, Jelsoft Enterprises Ltd.
Copyright © 2026 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.