Moved: difference between general tax structure of UK & Canada
 

i m planning to move to canada once my pr application is cleared.does anyone have information what is the tax structure in canada.as in UK you pay roughly around 30-35% of tax+national insurance on a high salary scale what could be the structure in canada in terms of federal tax+province tax(have heard something???)+social insurance...thanx.

Re: Moved: difference between general tax structure of UK & Canada
 

hi where in middlsex are you, Im from around there Ealing

Re: Moved: difference between general tax structure of UK & Canada
 

live in harrow. so when did u apply for your canada file???

Re: Moved: difference between general tax structure of UK & Canada
 

Re: Moved: difference between general tax structure of UK & Canada
 

It varies by Province, but in normal earnings ranges you should think about 30%.

In addition to the thoroughly researched, and rather splendidly written Wiki article referred to above, taxtips.ca is your friend.

Re: Moved: difference between general tax structure of UK & Canada
 

I lose over 40% of my gross salary. Now that I'm getting life insurance and medical cover, these are deemed taxable benefits, so I'll give even more on my next paycheck.

The above is no joke, and came as something of a shock, even after I'd looked at tax pages etc.

Then when you add in "council tax", sales taxes and all the other taxes, a lawyer acquaintance estimates that between 60 and 70% of your paycheck (if you are a middle earner) goes to the government.

No bull.

Re: Moved: difference between general tax structure of UK & Canada
 

It's pretty much the same as the UK overall. If this doesn't appeal to you, maybe you should look at emigrating to a low tax economy.

Re: Moved: difference between general tax structure of UK & Canada
 

Which province are you in?

Re: Moved: difference between general tax structure of UK & Canada
 

It's pretty much a 'bend over' on both sides of the Atlantic.

Re: Moved: difference between general tax structure of UK & Canada
 

Maybe a bit lower than the U.K. in Alberta, perhaps a little higher in Quebec.

Re: Moved: difference between general tax structure of UK & Canada
 

From what I remember about living in Quebec (I've blocked most of it out;)) you have to do two tax returns a federal and a provincial. They used to say it was the most highly taxed area in north america.:unsure:

Re: Moved: difference between general tax structure of UK & Canada
 

You do have to send two separate returns. It's not a major issue. The software my accountant uses generates both at the same time.

Quebec possibly is the most highly taxed part of North America but it's swings and roundabouts. I pay way more in personal tax than I would if I moved a couple of miles down the road to Ottawa. On the other hand, the house I live in would have cost me 50 grand more, I would not have been able to send the boy to (subsidised) private school etc, etc.

Re: Moved: difference between general tax structure of UK & Canada
 

This thread should really have ended at post #4.

In the UK I payed over 33% in tax and NI contributions. Last year my total tax burden on a much larger income after applicable deductions (including EI and CPP) etc was 26% in Ontario. Sales tax is also lower, although perhaps more widely applied. Excise tax on fuel is obviously much lower too. No TV license, car plate sticker is much cheaper than the UK registration sticker, and no annual MOT expense.

Property tax is broadly comparable, but considering how much snow has to be cleared here, something does not add up about UK council tax levels if you ask me.

Re: Moved: difference between general tax structure of UK & Canada
 

That's because the public services in the UK are being swamped to bursting point by an endless tide of illegal bogus immigrants, coming over here, stealing our women and raping our jobs. Clearly, it's political correctness gone mad; I blame the PC doo-gooders, the Guardian and Tony Bliar.

*froth* *loon*

Re: Moved: difference between general tax structure of UK & Canada
 

What, pray, is a doo-gooder? Is this a reference to some sort of scatalogical charity? The NSPCT perhaps?

Re: Moved: difference between general tax structure of UK & Canada
 

I have no idea. But judging by the context that it was used in towards me, you're probably pretty close.

Re: Moved: difference between general tax structure of UK & Canada
 

I'm not sure of the exact figures but I suspect overall I probably pay more tax (as a percentage of my income) in Canada. One of the key differences though is that in the UK the government is a lot more sneaky about taxes. Here in Canada you pretty much know what you pay and you know its tax and you just get on with it. For example sales tax - it gets added on to your purchase. You know its tax. You dont just think that the goods you are buying are really expensive. In the UK on the other hand sales tax (VAT) is disguised into the price. I remember the govt passing laws many years ago that forced retailers to display prices inclusive of tax as places like PC World used to show the pre-tax price. They dressed it up as making life easier for consumers but really it was to avoid constantly reminding people they were giving yet more money to the government.

Another classic is the way the UK govt keeps reducing income tax and at the same time increasing the amount of national insurance you pay! Like we dont realise its tax because they call it something else (oh, its not tax its "insurance" - wait... what is it that we are insuring?). So even though income tax is only 22% (or whatever it is now) you then pay about another 10% NI. And then - and this is the bit most people dont even know about - the employer also pays the Employer NI Contribution which is about another 13%. You might not paying but if the employer wasnt paying it you would be getting another 13% salary so you are paying it really. So actually the basic rate of income tax in the UK - even for a very modest income - is about 45%!!! But its disguised. So when you hear about tax rates in Canada being 40 or 50% it seems high but its really the same in the UK.

And don't get me started on TV licenses (but thats not a tax surely? Its just a "license". No wait... why does your TV need a license? Can it drive?)

Re: Moved: difference between general tax structure of UK & Canada
 

Hang on, you actually prefer having to mentally add 13% (or whatever) to everything you buy? Are you mad?

Re: Moved: difference between general tax structure of UK & Canada
 

Sure.

Re: Moved: difference between general tax structure of UK & Canada
 

Not particularly but the point is that at least there is a clear distinction between what is tax and what is the cost of the product.

Re: Moved: difference between general tax structure of UK & Canada
 

Who gives a shit? It's not exactly optional either way.

Re: Moved: difference between general tax structure of UK & Canada
 

Okay, so if tomorrow the UK Govt abandoned Employers NI contributions would all employers give their staff a 13% pay rise? No. But if it was never there to begin with employers wouldnt need to factor in the cost of employers NI to their payroll budgets. The point is that employers have a finite budget available and if 13% of the payroll bill goes to the government then only 87% of the payroll budget actually goes to the employee.

Re: Moved: difference between general tax structure of UK & Canada
 

And how do you expect the government would make up for this drop in revenue? Tax on marmite?

Re: Moved: difference between general tax structure of UK & Canada
 

I know.;)

Having said that, my employer in the UK offered me more than they were advertising the job for in the UK. I think that's because they don't have to pay NI on me.

Re: Moved: difference between general tax structure of UK & Canada
 

Nooooooooooooooooooooo!!!!!!!!!!!!!

Re: Moved: difference between general tax structure of UK & Canada
 

I'm not arguing about whether there should or shouldnt be sales tax though - its just an example of a sneaky stealth-like method of taxation. One of the reasons that HST/GST has come down in Canada is because people know how much they're paying. When you spend $1000 and you see that $130 goes to the government you resent it slightly. In the UK attention isnt drawn to it in the same way so people just carry on paying 17% without complaining.

Re: Moved: difference between general tax structure of UK & Canada
 

Canada (Ontario anyway) has employer contributions to EI / CPP and WSIB.

So not so different really, which is the overall tax picture on Canada compared to the UK.

Anyway, all the OP wanted was an idea what his take home pay was likely to be wasnt it?

And the answer to all that was in the wiki. The Taxtips website is probably the best place to look for a quick ballpark calulator. Just remember that EI and CPP are not spread evenly over the year.

Re: Moved: difference between general tax structure of UK & Canada
 

Why should people resent paying tax? Funding for schools, hospitals, water, sewerage etc has to come from somewhere.

Re: Moved: difference between general tax structure of UK & Canada
 

Rubbish. What's wrong with home education, homeopathy, a well in the garden and pooing in the bushes?

Re: Moved: difference between general tax structure of UK & Canada
 

Thats how you grew up isnt it? Explains a lot:D

Re: Moved: difference between general tax structure of UK & Canada
 

BC hippy!

Re: Moved: difference between general tax structure of UK & Canada
 

I think it's a fair system, especially considering the lower property taxes for rural homes. There's neither town water or sewerage here so they're not included in the bill.

Re: Moved: difference between general tax structure of UK & Canada
 

Depends on how close the bushes are to the well.

Re: Moved: difference between general tax structure of UK & Canada
 

Sounds like someone needs their chakras realigning.

Re: Moved: difference between general tax structure of UK & Canada
 

Sounds like a job for Tylenol 3 and a bag of frozen peas.

Re: Moved: difference between general tax structure of UK & Canada
 

Anyone else notice the irony of a brit applying to live in Canada complaining about immigrants???

Re: Moved: difference between general tax structure of UK & Canada
 

I don't think he was being entirely serious.

Re: Moved: difference between general tax structure of UK & Canada
 

I wasn't either to be honest just recounting a conversation I had today with a person in the post office. Mentioned I was going to Canada and they said it was the right thing to do etc etc etc immigrants in uk etc etc etc

They couldn't understand the irony of suggesting they became an immigrant to avoid immigrants.