The Island (North & South) is in the depth of a very deep recession, paycuts, increases in tax, job losses, is very much the norm these days.
I work in the North and I found it rather strange that im getting an increase in my take home pay come the end of March.
the tax changes are as follows for 2013/2014:
•What you can earn tax fee has went from £8100 up to £9440.
•20% tax band has went from 0 - £34K to 0 - £32K
•40% tax band has went from £34K - £150K to £32K - £150K
My tax code will then change from 810L to 994L
With the tax changes coming into effect, il actually be up – about £25 a month.
All my mates in the South seem to be loosing over €100 a month this year.
I’m just a few hundred below the 40% tax threshold (which im very very happy with)
Isn’t it amazing the total contrast in the 2 tax systems on this island. The North’s tax system is favourable for low to middle earners. The South’s is not favourable to anyone.
That way I see it, the North’s (or UKs) tax system encourages the low to middle earner to continue spending. This section of society actually keeps the economy going.
Surely – who has the most sustainable system?
or why is the Souths so different?