UK Income Tax prior to getting NI # and Monthly Living Costs

Hey!

So I am in the process of planning the move to London and just had a question on UK income tax. I've heard that you will pay a higher income tax % prior to getting an National Insurance number, which can take a couple months.

Just wondering what % of tax I could expect on a salary of about 40,000£? I am budgeting for about 30% tax, but I've heard it could be as high as 40%?

I have also prepared a quick monthly budget and just wondering if anyone could comment on these costs. I've been pretty conservative by over-budgeting most items. I plan on living by myself hence the high rent expense.

rent 1,300/month
tv/internet/phone 60
cell phone 50
council tax 150
electricity 45
heating 45
water 45
food 400
home insurance 40
transit pass 50

Any help would be greatly appreciated!

Basic rate in the UK is 20% I think, top rate is 40% (there is a 10% rate for low-income earners but they keep on about abolishing it). But I wouldn't worry about it because if you're paying a different rate merely because you don't have an NI number, you can claim it back from HMRC when you get it.

The 40% rate kicks in at £36,000, 20% below that. Basic personal allowance is around £5,500, so work it out from that. £7,700 in income tax roughly. But there are other taxes, the main one being NI. Have a go with this: http://listentotaxman.com/

If you're planning on staying in the UK temporarily, you might be better off tax-wise to claim the tax treaty exemption. This essentially exempts you from UK payroll taxes entirely and you simply declare your UK income on your T1. It'll probably work out cheaper from a tax standpoint, although I haven't calculated it exactly and it depends on which Province you reside in.

there is a good little tool on this website, just enter your yearly income in the yellow line ("Gross income every year")field and click Calculate..if your income is £40000 you should get approximately £2440/month.

The HM Revenue and Customs website too is a good source of information.

The thing you have to remember is that you will not be taxed 40% on an income of $40000, you only get taxed 40% on your revenue over £36000 (so you get taxed 40% on £4000)

hope this helps

If you're planning on staying in the UK temporarily, you might be better off tax-wise to claim the tax treaty exemption. This essentially exempts you from UK payroll taxes entirely and you simply declare your UK income on your T1. It'll probably work out cheaper from a tax standpoint, although I haven't calculated it exactly and it depends on which Province you reside in.

How does one go about claiming the tax treaty exemption?? I have found HMRCS to be pretty useless on that front, and CRA as well.