Higher tax band UK V ireland

S

steveyd

Registered User
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65
Hi,

I was interested to read in the UK budget that the higher rate of tax band is approx 60K euro in the UK, whereas in ireland it is 32K.

Perhaps this is a letting off steam thread, but this seems a significant difference.

What do u think?
 
Band here in Ireland is €34k and I believe the band in the UK is pretty similar not €60k. Haven't heard it changing in UK but I could be wrong. If it is, its a fair hike from what it was last year.
 
I think that comparing different country's tax rates and bands is not a good measure - there are pros and cons for each country, and many "hidden taxes". (e.g. in Belgium the average tax take is 33%, and social security is 33%, leaving an employee with 33% in their hand!!!!)

I lived in the UK for many years, and although the tax bands and allowances are more generous in the UK, there is the Council Tax to pay in the UK, and PRSI is actually marginally lower in Ireland.

On a salary of about €60K, the net take home in the UK is greater, but by the time you pay your council tax out of your net income, you have about the same net spending power.

You need to look at the overall picture.......
 
I lived and worked in the UK for many years - and Ireland always has a reputation for high tax which is not really true. Recent OECD figures show that for average earners - single and families - Ireland is one of the lower taxed nations.
I did a quick check on 2 online tax calculators for the UK and for Ireland. For a single person with a wage of 50k Sterling (I used 75k Euro for Ireland) - the difference in take home pay was less than 1000 euro. (Ireland was less take home than UK) . The difference is not that much - and for lower earners (majority?) the tax and PRSI deductions are less in Ireland.
Of course - as others mentioned - there is also Council Tax and Water Rates in the UK which can be about 2000 euro or more a year per house.
 
Any sensible comparison would need to take indirect taxes (particularly VAT) into account.
 
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