Thursday, September 25, 2008

The Taxman Cometh

Well, the info I've been holding my breath for basically since I decided to go to London has finally arrived: How much tax do I owe the HMRC (Her Majesty's Revenue & Customs)-the equivalent of the US IRS.

Keeping in mind that I only had 1 month of income before the end of the 'tax year'-yes, the UK's tax year (for whatever stupid reason. sorry. there was judgement in that statement) is April 1-March tax liability?


Yep. £9.50. That wasn't a typo. Now, admittedly, for the one month, I am considered in the lower income tax bracket, and I had extra deductions I likely won't always have-but, this does also make me believe my post-tax income is going to be much better than I thought. The one downside? Unlike the US where you can adjust your withholding throughout the year, you can't in the UK. 'They' calculate your withholding based on your income and without regard to your deductions. How clever. 'They' get to keep hold of my money for a full year before I get it back. So, though it means my monthly 'income' won't change during the year per se, I am led to believe I will get a huge, fat refund come this time next year.

A big, fat whew after this.


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