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Payroll taxes matter to some extent when comparing employment in different tax regimes because they determine (some of) the total cost to the employer. They can
by dan-robertson 4y ago
Payroll taxes matter to some extent when comparing employment in different tax regimes because they determine (some of) the total cost to the employer. They can also matter for contracting arrangements. Though the local job market probably matters more.
- vidarh 4y agoYes, but the sub-thread here started with someone suggesting they'd be paying 50% tax, and when talking in terms of employees, it's not normal to include it. When including it, we're usually talking about total tax wedge rather than tax rate (e.g. see OECD Taxing Wages). Even so, as noted, you'd not hit 50% even with payroll taxes at anywhere near the income levels stated. At the stated 100k GBP contracted salary, your "salary" including payroll tax would be 113,207 GBP, and your total tax wedge would be 41% (compared to 33% combined income tax and NI).
- dan-robertson 4y agoFair point. I was mostly responding to the bit from the root comment about the comparison between countries and not their incorrect understanding of taxes in the U.K.