how to save tax in UK

[Laksonline]

Hey guys,

I have got a permanent job which pays me 55K basic + benefits
i do not want to pay 40% of tax, is there any way we could save there as we do in India?

any guidelines?

[gotcha]

any guidelines?

No, there is no way out.

[prisat]

Hey guys,

I have got a permanent job which pays me 55K basic + benefits
i do not want to pay 40% of tax, is there any way we could save there as we do in India?

any guidelines?

Welcome to UK !!!

[Idea]

A long shot - Increase the contribution to the pension fund...may help

[kenfrapin]

Hey guys,

I have got a permanent job which pays me 55K basic + benefits
i do not want to pay 40% of tax, is there any way we could save there as we do in India?

any guidelines?

You wont pay 40% for the whole amount my friend. Hope you have confirmed your take home salary by checking on the listentotaxman website.

Regarding tax savings, well, unlike Asia, there is nothing out here to help you reduce your tax outgoings. You can save the interest you earn when you invest in Fixed Deposits but again that only helps you get more interest on your investment but in the end, the principal amount, your actual money is always taxed and given to you so no options I am afraid

And hey, congrats on your job. £55k is a VERY decent package

KP

[sapvish]

Laksonline first of all congratulations on your job.
I have a question... sorry i dont have an answer to your question though!

You have managed to fetch a very decent job. Too good. Pls let me know how long you had to try before you got this job and what are your skill sets? Just want to know what are current valued skill sets and basically the job market situation in UK. Hope you wil respond. Thanks a ton! and good luck on your job

[Laksonline]

Laksonline first of all congratulations on your job.
I have a question... sorry i dont have an answer to your question though!

You have managed to fetch a very decent job. Too good. Pls let me know how long you had to try before you got this job and what are your skill sets? Just want to know what are current valued skill sets and basically the job market situation in UK. Hope you wil respond. Thanks a ton! and good luck on your job

hey sap
i hv posted these details in other thread..

[sapvish]

kenfrapin may be you can answer my query
was going thru listentotaxman website as u suggested in this thread.

For 55k i found that net wage after tax deduction is around 38k which comes to around 3200 take home per month. Am i right in this calculation. Approximately is this the way deductions happen? I wanted to get an idea on what would be the take home basically!

[kenfrapin]

Yes Sapvish you got the calculation right

For a salary of £55k,

Yearly tax free allowance is £6475 - constant for everyone
Yearly National Insurance is £4309
Income Tax on Salary is £11930

And final take home comes to £38760 which translates to £3230 per month. There is no way of reducing your tax outgoing from the above calculation in the UK

If you directly convert this to Indian Rupees @ Rs 65 to £1, then one pays a total tax of Rs 10.75 lakhs on a salary of Rs 35.75 lakhs and just takes home Rs 25lakhs

Wonder if it is the same if one actually earns Rs 35 lakhs there!!!!

Cheers
KP

[sapvish]

Hm... its quite high...
Here in india no we wouldn't be paying 10 lacs out of 35 lacs in tax...
Wel day to day life in UK is definitely better than here

[kenfrapin]

day to day life in UK is definitely better than here

Chose the right town, get a lovely house and even though it may be a lil colder in winter, overall quality of life is a lot better here. The sheer lack of stress and tension in comparison to living in Asia adds another 10 years to life expectancy

KP

[Laksonline]

day to day life in UK is definitely better than here

Chose the right town, get a lovely house and even though it may be a lil colder in winter, overall quality of life is a lot better here. The sheer lack of stress and tension in comparison to living in Asia adds another 10 years to life expectancy

KP

true.. i hate living like rats in places like east ham
which is the best place to buy a moderate apartment?

[kenfrapin]

Depends on where your work base is - I have personally seen Maidenhead and its very beautiful. It's just 30mins from London Kings Cross and then a tube to work is required.
Not sure of any other places as I have not personally lived there. Slough is not good. However, the Bath Road is a long winding stretch of road that passes through Slough and Maidenhead - there are some pretty decent suburbs on either sides of the Bath Road

KP

[wunder]

Maidenhead is on the line from Paddington

[wabuthu]

Hey guys,

I have got a permanent job which pays me 55K basic + benefits
i do not want to pay 40% of tax, is there any way we could save there as we do in India?

any guidelines?

@laksonline: is it okay if i ask whether you contacted companies directly or did you use recruitment agencies? and if so which agencies did you use?

At the moment i'm applying online through the recruitment agencies but i hear alot that most of their jobs are "fake/non-existent" postings that don't exist just to make them look good...and they few real postings they have are in high competition. Hence i'm trying to get a list of reputable recruitment agencies that do not follow such practices. So far i have found like 3 in my field, but just curious to know what success others had with which agencies. Thanks and congrats on the great job!

[wire]

Congratulation Laksonline!

Quick one - What are the benefits that came with the package? I am on a similar slab but with no benefits at all.


For Kenfrapin -

For a salary of £55k,

Yearly tax free allowance is £6475 - constant for everyone
Yearly National Insurance is £4309
Income Tax on Salary is £11930

And is it fair to say that the National Insurance doesnt get deducted until the first year is up?

[Wanderer]

And is it fair to say that the National Insurance doesnt get deducted until the first year is up?

Not true unfortunately!

[wire]

And is it fair to say that the National Insurance doesnt get deducted until the first year is up?

Not true unfortunately!

Aah Ok. Some Indian companies have a tie up with the UK Government which allows a 12 month break on NI payments. I guess, this doesnt apply for local hires.

[pyke]

Slough is not good.

Why's that? I'm curious.

[kenfrapin]

Agree with Wire - few Indian Companies pay NI for the 1st year which is nice.

Pyke - We stayed in Slough for 6 long months and hated it. I came to the UK to experience English lifestyle, English cuisine, English tradition and their nuances. If I wanted to be amongst my own, smell my own, walk amongst my own, see all the mess and dirt then I would remain back in my own home town than come to the UK.
There are a few areas on either side of the Bath Road that are good but in general, Slough is sad

Slough is way better than Southall of course. I went just once and swore never to return again!!!! Its like your back in Punjab - the grime and the dirt gives no hint of you being in Europe. Hell, even the train station stinks of p** when you come out of there!!!!!

KP