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bigduckontax
bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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I am an Australia citizen and my wife a US citizen. We

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Hi,I am an Australia citizen and my wife a US citizen. We will be moving to the UK in three months and will be making JOINTLY 45,000-50,000 pounds a year.We are both coming to the UK on workers Visa.How much will be paying in Taxes and any other government Tax (Pensions, National Insurance) IN THE UK.Thanks
Submitted: 11 months ago.
Category: Tax
Expert:  bigduckontax replied 11 months ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Before I can address the nub of your query I need to know the approximate split of the 45 - 50K income you anticipate. In the UK husband and wife are entirely separate persons as far as income Tax (IT) and NI is
Customer: replied 11 months ago.
Hi Keith,Thanks for your reply. So just to confirm that for ALL tax purposes husband and wife are separte in the UK, even if we are on a workers visa.With regards ***** ***** question: we dont have final satistics but I assume it will be somewhere around 35 K for myself and 15-20 K for my wife. We have one child who is almost three.Kind regards,
Neach
Customer: replied 11 months ago.
If there is any other information neccesary you need please let me know.
Expert:  bigduckontax replied 11 months ago.
Yes, this split has been in force for longer than I care to remember as far as IT is concerned. There are complications regarding husband and wife where Capital Gains Tax is concerned, a couple can only have one sole or main domestic residence between them, but that need not concern you at this stage. The visa type is irrelevant. If you spend more than 183 days in the UK in any one tax year, 6 April to 5 April, then you are liable to UK taxation on your world wide income. Your liability to IT will be 35K - 11K [personal allowance] = 24K @ 20% = 4.6K. Your wife's, say 20K - 11K = 9K @ 20% = 1.8K. NI rates are complex and depend upon the method of employment, employed or self employed and I need more detail before I can calculate these. You may be entitled to child tax credit also which you can claim from the Tax Credit Office in Preston. All the relevant rates of UK taxation can be found here: https://www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2016-17/tax-and-tax-credit-rates-and-thresholds-for-2016-17 I do hope that you have found my reply of assistance.
Customer: replied 11 months ago.
Hi Keith,Thanks for that.We will both be employed. What will be the IT? And approx how much is the child tax credit for a 3 year old girl?
What is a marriage allowance and what is a married woman's allowance?
What is the child element and the family element in the child tax credit section and would we be eligible for that?
Lastly what is the fuel benefit charge, would we be eligible for that?Thanks, ***** ***** that should be it.
Expert:  bigduckontax replied 11 months ago.
No marriage allowance, went in 1999! I told you the IT, 4.6K for you, 1.8 for your wife. You would appear eligible for child tax credit, 2780 pa, but you start to loose it progressively if your income rises above 16.105K; it replaced the IT child allowance so long ago I've forgotten! Winter fuel allowance is effectively only available if you were born before 1953, GBP 200 pa. Please be so kind as to rate me before you leave the Just Answer site.
Customer: replied 11 months ago.
So sorry I meant NI? Not IT.
Expert:  bigduckontax replied 11 months ago.
NI is complex; if you are employed you pay Class 1 NI, 12% on earnings GBP 155 - 827 and 2% above that income level. Under PAYE these are deducted automatically by your employer. If you are self employed you pay Class 2 & Class 4 contributions. Class 2 is GBP 2-80 per week above GBP 5965 pa income and Class 4 8% 9060 - 43000 pa and 2% thereafter.
Customer: replied 11 months ago.
Hi,Sorry I really didnt understand that, if you would be able to simplify that in plain speak, how much NI would me and my wife be paying if self employed and me earning 35K and she is earning 20K.
Expert:  bigduckontax replied 11 months ago.
You will pay Class 2 GBP 146 plus Class 4 GBP 2045 = 2221 NI. Your wife will pay Class 2 GBP 146 plus Class $ GBP 875 = 2010 NI.
Customer: replied 11 months ago.
And if we are both employed and NOT self employed, how much would we pay then?
Expert:  bigduckontax replied 11 months ago.
You 3234 her 1029.
Customer: replied 11 months ago.
Hi Keith,So just to summarize: (35 K Husband and 20K wife)
NI for me: 3,234 - For her: 1,029.
IT will be 4.6K for husband And for my wife 1.8K
Exemptions: 2,780 pa for Child
Total taxes: 10,663 GBP, pa.
Total taxes with exemptions: 7,883Are there any other taxes or exemptions that I should be aware of?
Expert:  bigduckontax replied 11 months ago.
There are no exemptions for children, but you do get tax credits for them, progressively reduced as income rises. Those are all the taxes you need to be concerned save for Council Tax [local taxation] on the accommodation in which you reside.
Customer: replied 11 months ago.
OK great. So there are no further exemptions or credit that I could claim for? I think/hope that this will be my final question:)
Expert:  bigduckontax replied 11 months ago.
Not that I can see.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3357
Experience: FCCA FCMA CGMA ACIS
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Customer: replied 11 months ago.
Well thank you very much for that.
Expert:  bigduckontax replied 11 months ago.
Thank you for your support.

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