Moved: difference between general tax structure of UK & Canada
#17
Immigration Consultant







Joined: Jun 2007
Posts: 2,144
From: Halifax, Nova Scotia











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?)
#18








Joined: Feb 2007
Posts: 3,020

Hang on, you actually prefer having to mentally add 13% (or whatever) to everything you buy? Are you mad?
#20
Immigration Consultant







Joined: Jun 2007
Posts: 2,144
From: Halifax, Nova Scotia











#21








Joined: Feb 2007
Posts: 3,020

Who gives a shit? It's not exactly optional either way.
#22
Immigration Consultant







Joined: Jun 2007
Posts: 2,144
From: Halifax, Nova Scotia











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.
#23








Joined: Feb 2007
Posts: 3,020

And how do you expect the government would make up for this drop in revenue? Tax on marmite?
#24










Joined: Apr 2005
Posts: 9,606

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.

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.
#26
Immigration Consultant







Joined: Jun 2007
Posts: 2,144
From: Halifax, Nova Scotia











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.
#27
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.
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.
#28










Joined: Apr 2005
Posts: 9,606

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.
#29








Joined: Feb 2007
Posts: 3,020




