HeliX Posted February 17, 2022 Share Posted February 17, 2022 6 minutes ago, Lost Login said: That seems a slightly unfair comparison in my view as one party is working and the other is not. If the non pensioner was not working then I think the pensioner would receive a lot more than the non pensioner. The employee would also be paying about £1,500 in tax & NI if I have my calculations correct. Depending where they live they could easy be paying £500 a year for public transport to work. If you live in Ballasalla and work in Douglas you are looking I think at about £5 a day. Still a gap but not as stark as you suggest. Plus £8k+ a year in rent/mortgage... Quote Link to comment Share on other sites More sharing options...
Derek Flint Posted February 18, 2022 Share Posted February 18, 2022 6 hours ago, 0bserver said: Living on the Isle of Man is not a good place to be for finances full stop. Unless you're massively wealthy or a tax dodging tax capper. Not having that. although some things are less expensive in the UK, the tax system in the IOM is extremely generous and it balances out. Rates are significantly lower, the ability to transfer allowances between spouses and there being no 40% band are massive benefits for the residents. 1 Quote Link to comment Share on other sites More sharing options...
Lost Login Posted February 18, 2022 Share Posted February 18, 2022 51 minutes ago, Derek Flint said: Not having that. although some things are less expensive in the UK, the tax system in the IOM is extremely generous and it balances out. Rates are significantly lower, the ability to transfer allowances between spouses and there being no 40% band are massive benefits for the residents. That would seem to indicate that you are on a very good pension as the IoM tax system only really starts to become extremely generous if you have earnings in excess of £50,000. At £50k the tax saving is about £1,000 which is not to be sniffed at but could well be eaten up in costs of living in the IoM. I am ignoring other allowances I would not put it in the same words as Observer but I doubt you see a massive benefit unless your income is such that you would be a higher rate tax payer in the UK. I would like to see tax rates changed in the IoM to give greater benefit to lower earners so that those earning under say £30k see a bigger benefit with it being paid for by a 25% rate for those with income over £50K i.e. where the UK 40% rate kicks in. 1 Quote Link to comment Share on other sites More sharing options...
Non-Believer Posted February 18, 2022 Share Posted February 18, 2022 8 hours ago, Numbnuts said: Living in Douglas at that time is not good for finances . Living in any of the Island's larger towns at that time is getting to be that way. Quote Link to comment Share on other sites More sharing options...
WTF Posted February 18, 2022 Share Posted February 18, 2022 8 hours ago, HeliX said: Those still working are much less likely to have a mortgage that has been paid off, of course. mortgages are irrelevant to pensioners in rented accommodation. Quote Link to comment Share on other sites More sharing options...
english zloty Posted February 18, 2022 Share Posted February 18, 2022 Not sure why this wanna be MHK gets airtime. Anyways, apparently he does great irony, having voted through a huge hike in rates with limited justification. Funny that https://www.manxradio.com/news/isle-of-man-news/councillors-concern-that-standard-of-living-could-fall/ Quote Link to comment Share on other sites More sharing options...
Non-Believer Posted February 18, 2022 Share Posted February 18, 2022 "Living standards could fall"? He's either blind or taking the piss, they've been dropping like a stone for a good couple of years or more for a lot of people I'd suggest. Much of it fuelled by rising charges and cuts in services by Govt and LAs. Though obviously the Island isn't exempt from global fluctuations either. 1 Quote Link to comment Share on other sites More sharing options...
HeliX Posted February 18, 2022 Share Posted February 18, 2022 1 hour ago, WTF said: mortgages are irrelevant to pensioners in rented accommodation. They should've worked harder and eaten less avocado toast so they could buy a house. 2 Quote Link to comment Share on other sites More sharing options...
doc.fixit Posted February 18, 2022 Share Posted February 18, 2022 12 hours ago, Banker said: Without appearing too flippant one person will have less costs than 2😀 No offence taken but one person will only get half of that amount. Could you exist reasonably on that amount? Quote Link to comment Share on other sites More sharing options...
A fool and his money..... Posted February 18, 2022 Share Posted February 18, 2022 (edited) 1 hour ago, HeliX said: They should've worked harder and eaten less avocado toast so they could buy a house. If those pensioners had done without the latest iphone when they were in their twenties they'd easily have made it onto the property ladder. Edited February 18, 2022 by A fool and his money..... 4 Quote Link to comment Share on other sites More sharing options...
Banker Posted February 18, 2022 Share Posted February 18, 2022 29 minutes ago, doc.fixit said: No offence taken but one person will only get half of that amount. Could you exist reasonably on that amount? No I couldn’t live on state pension which I don’t get for 2 years but luckily have an occupational one plus some PT work 1 Quote Link to comment Share on other sites More sharing options...
0bserver Posted February 18, 2022 Author Share Posted February 18, 2022 11 hours ago, Derek Flint said: Not having that. although some things are less expensive in the UK, the tax system in the IOM is extremely generous and it balances out. Rates are significantly lower, the ability to transfer allowances between spouses and there being no 40% band are massive benefits for the residents. I usually agree with you Derek but I can't on this one. It might be fine if you're earning £50k+ and married. But there's many people who don't and aren't. It's not good for many and there is a sizeable underclass developing and growing. 6 Quote Link to comment Share on other sites More sharing options...
NoTail Posted February 18, 2022 Share Posted February 18, 2022 I did my sums a few years ago. Then I reckoned that with an income of 50k you were better off on the iom. I suspect its nearer 60k now. Obviously , the real attraction is the lack of capital taxes. Many benefit from that. 2 Quote Link to comment Share on other sites More sharing options...
Derek Flint Posted February 18, 2022 Share Posted February 18, 2022 52 minutes ago, 0bserver said: I usually agree with you Derek but I can't on this one. It might be fine if you're earning £50k+ and married. But there's many people who don't and aren't. It's not good for many and there is a sizeable underclass developing and growing. 48 minutes ago, NoTail said: I did my sums a few years ago. Then I reckoned that with an income of 50k you were better off on the iom. I suspect its nearer 60k now. Obviously , the real attraction is the lack of capital taxes. Many benefit from that. Let’s take a median of say, £30k. A married couple would now pay no tax on that. A single person would pay about 3 grand? In the UK they would pay an additional £400. Rates will be lower, fuel charges higher. Insurances lower, cost for broadband higher. I honestly think it balances out. I’m gettIng absolutely spanked though. Once you hit that 40% band it is brutal. Quote Link to comment Share on other sites More sharing options...
A fool and his money..... Posted February 18, 2022 Share Posted February 18, 2022 2 hours ago, Derek Flint said: I honestly think it balances out. I’m gettIng absolutely spanked though. Once you hit that 40% band it is brutal. But surely you just pay the 40% on your earnings over the 40% band (about £50K isn't it?). So you have £50k of income that is taxed in exactly the same way as someone earning £50k or less. How is that getting spanked or brutal? Genuine question, I don't know much about tax so may have interpreted it wrongly. Quote Link to comment Share on other sites More sharing options...
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