The Other Side: The Move to London

I did a little urban exploring in Milton Keynes my last day. There is a large shopping center that is supposed to be one of the largest in all of Europe so I had to check it out. Known as the Xscape it is massive.

Inside there is even an indoor ski slope - it was weird watching people in the mall carrying ski's

Before I left Milton Keynes I received the 101 on UK individual tax returns - Stop here and move to the pictures below if you are not into number crunching!

The SA-100
The first noticeable difference in tax systems is one of self assessment, unless you have significant income outside your wages and investments, you're usually not required to file a UK tax return. The SA-100 SA standing for "self assessment" return is only filed by a minority of the population.

Some observations:
- Married Individuals do not have an option to file "joint" returns
- 4 brackets in UK - 0%, 20%, 40%, 45% The 40% bracket starts as early as $72,000 USD equivalent
- Employees receive a P60 at the end of year, equivalent of our W-2 stating wages and withholding
- Tax is withheld at source on all investment income, so interest and dividends are paid NET of tax
- Capital gains are taxed at 0%, 10%, 18% or 28% based on where you fall in the rate bands(brackets)
- National Insurance Contributions (NIC) are due on income/wages, similar to our payroll tax
- There is no "itemized deductions" allowed in the UK, and there are very limited number of credits, one such credit is the Seed Enterprise Investment Scheme whereby the investor receives a 50% CREDIT for contributions into small businesses. There are provisions on size and time duration
- Retirement and charitable contributions are not deductible on the SA-100, they shift income from high brackets to lower brackets proportional to contributions. On the back end, the amount is grossed up by HMRC (Her Majesty's Revenue and Customs - IRS equivalent) and paid to the institution on the back end (paid to the charity or financial institution holding the retirement fund).

As an example, if you contributed $48(after tax $) to your retirement fund, and you were in the 20% bracket, the HMRC would contribute $12 into your retirement account.

My move to London was short, only about an hour away but for most in the MK Mazars office it was the last time I would see them. I left the team with goodies in typical English courtesy, and said all my goodbyes. I will always remember the hospitality I received from everyone in Milton Keynes - thank you.

Coming into London, I knew my location must be pretty good because it only took 45 minutes to get to the city but almost an hour to get to my apartment. Here is a view from my window! I'm about 15 walk from the office and tower bridge. I live right on top a fish and chip shop - yes, how stereotypical. There are grocery stores, markets, shops and restaurants all around me - city living!