# Tax on Tier2 long term visa



## m_hars (Jul 7, 2013)

Hi friends,

I work for an IT company have been given an option to work in UK for a role specific to my expertise. I'm planning to be there for a period of 3 years and company would be applying for an ICT Tier 2 long term visa for self and family. I want to understand the exact taxation applicable for let's say a 60000 GBP annual salary. I'm given to understand that there is a provision of personal allowances which can be treated as non-taxable for a certin period of time. Request you to kindly help me understand what would be the take home salary for abovementioned annual salary.


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## Joppa (Sep 7, 2009)

Use tax calculator site to get an idea of your net, take-home pay, such as
Salary Calculator 2013, UK Tax Calculator 2013 , Listentotaxman PAYE income tax calculator, payslip, how much tax will i pay, national insurance, tax free allowances student loan repayment..
Your personal allowance of £9,440 for the current tax year is the amount of income you don't pay tax on, and is given to everyone who earns and is tax resident in UK. 
Roughly speaking, your net annual pay is around £41,763 and monthly pay £3,480. Exact figures vary depending on such things as pension contributions and fringe benefit like company car and private medical insurance.


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## m_hars (Jul 7, 2013)

m_hars said:


> Hi friends,
> 
> I work for an IT company have been given an option to work in UK for a role specific to my expertise. I'm planning to be there for a period of 3 years and company would be applying for an ICT Tier 2 long term visa for self and family. I want to understand the exact taxation applicable for let's say a 60000 GBP annual salary. I'm given to understand that there is a provision of personal allowances which can be treated as non-taxable for a certin period of time. Request you to kindly help me understand what would be the take home salary for abovementioned annual salary.


Thanks Joppa for your instant reply.

However apart from the personal allowance, I understand that one can claim the monthy expenses such as house rent, groceries etc as non-taxable components. Can you please provide data regarding the limits and list of such expenses which can be claimed for tax rebate.


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## Joppa (Sep 7, 2009)

No you can't. The only things you can claim are unreimbursed business expenses such as travel (not commuting), use of part of your house exclusively for business, stationery, telephone calls etc, if non-reimbursed. The list is quite specific for the employed (self-employed can claim more). Things like rents and food definitely aren't eligible.

See HM Revenue & Customs: How to get allowances and reliefs - employees or directors


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## xxxxxxxxxxxxxsssagi (May 21, 2013)

m_hars said:


> Thanks Joppa for your instant reply.
> 
> However apart from the personal allowance, I understand that one can claim the monthy expenses such as house rent, groceries etc as non-taxable components. Can you please provide data regarding the limits and list of such expenses which can be claimed for tax rebate.


I think you are refferring to Dispensation model under which some of these allowances are non taxable. You'll have to check with your company if they have sent you on dispensation salary model.


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## lovestravel (Apr 9, 2012)

I think you are right. If you have a cola living expense paid to you that you have to pay back whatever you don't spend then I think it is exempt from taxation. We opted for the cola to be paid to us without paying back what is not spent on living expenses so it is taxable income. We are also on a tax equalisation agreement with the company in which they withhold whatever our taxes would normally be if we still lived int he states and the company makes up the difference. They hired a tax attorney to handle our taxes as well. You might want to ask if they will agree to this type of contract.


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