# NZ Income Tax v UK Income Tax



## eastendoflondon

Hi All,

I've done a quick comparison between NZ and GBP tax rates and i _*think*_ i'm pleasantly surprised:

See tables below:
NZ
10.5 cents in every dollar for income up to $14,000 
17.5 cents in every dollar for income from $14,001 to $48,000 
30 cents in every dollar for income from $48,001 to $70,000 
33 cents in every dollar for income of $70,001 or above. 

UK
Rate 2011-12 
Starting rate for savings: 10%*£0-£2,440 
Basic rate: 20% £0-£35,000 
Higher rate: 40% £35,001-£150,000 
Additional rate: 50% Over £150,000 

I know i shouldn't but i was trying to reconcile in my head how Kiwi's survive on what appear to be lower salaries then Western countries for similar jobs and this could partially explain it. Having stayed there for a few months it looked on the surface like food generally was more expensive but then fuel was cheaper so that balanced off nicely.
Energy costs seem to be cheaper but then that depended on type of house you lived in as winters are obviously a lot colder in older less efficient houses.

What concerns me at the moment is the economic status of a lot of my fellow European countries with high debt versus GDP ratios and economic growth projections. In NZ however again i am pleasantly surprised to see that that ratio is fairly healthy at the moment. It has taken a turn for the worse over the past year or so due to the earthquakes in Chch but that will balance out over the next few years according to John Key et al.

I'm very interested to know about things like stealth taxes(if any),childcare costs, GP charges, health insurance etc so will continue my investigations but so far so good 

We are still planning on being back in NZ around 2013. 

Back to work now...

:ranger:


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## omidvx

eastendoflondon said:


> Hi All,
> 
> I've done a quick comparison between NZ and GBP tax rates and i _*think*_ i'm pleasantly surprised:
> 
> See tables below:
> NZ
> 10.5 cents in every dollar for income up to $14,000
> 17.5 cents in every dollar for income from $14,001 to $48,000
> 30 cents in every dollar for income from $48,001 to $70,000
> 33 cents in every dollar for income of $70,001 or above.
> 
> UK
> Rate 2011-12
> Starting rate for savings: 10%*£0-£2,440
> Basic rate: 20% £0-£35,000
> Higher rate: 40% £35,001-£150,000
> Additional rate: 50% Over £150,000
> 
> ....


Hi eastendoflondon,
The tables you were mentioned above are for a year or a month?
it seems for NZ it is yearly and for UK it is monthly!? am I correct?


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## topcat83

omidvx said:


> Hi eastendoflondon,
> The tables you were mentioned above are for a year or a month?
> it seems for NZ it is yearly and for UK it is monthly!? am I correct?


I hope they're both yearly or I'm definitely moving back to the UK - 35k GBP to 150k GBP per month? Lead me to it!!!


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## topcat83

Also - don't forget that the UK has a 'personal tax allowance' , and you pay tax on earnings above that limit. 

In NZ it's on dollar one.


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## KiwiKnox

Hi guys,
The above NZ tax rates you quoted are per annum. The tax year generally runs from April to March. The above rate do not include ACC (Accident Compensation Corporation) Levies more information can be found on their website, you should be able to google, as i am not able to post urls here yet.


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