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Whilst some of the information is outdated, you may still find this article useful. Moving to Ireland from the UKAppendicesComparison Of The Tax Due In Ireland Or The UKAppendix 2 - Comparison Of The Cost Of Living Betweeen Ireland And The UKAppendix 1A
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| IRISH FINANCE ACT 2001 IR£ | UK FINANCE ACT 2001 STG£ | |||||
|---|---|---|---|---|---|---|
| Partner 1 | Partner 2 | Partner 1 | Partner 2 | |||
| Gross Salary | 40000.00 | 40000.00 | 40000.00 | 40000.00 | ||
| Personal Allowance |
4535.00 |
4535.00 | ||||
| Taxable Income | 40000.00 | 40000.00 | 35465.00 | 35465.00 | ||
| Tax | ||||||
| 20000@20% | 4000.00 | 4000.00 | 1880@10% | 188.00 | 188.00 | |
| 20000@42% | 8400.00 | 8400.00 | 27520@22% | 6054.40 | 6054.40 | |
| 6065@40% | 2426.00 | 2426.00 | ||||
| 12400.00 | 12400.00 | 8668.40 | 8668.40 | |||
| Tax Credits | ||||||
| Single Persons's Allowance | 5500@20% | 1100.00 | 1100.00 | |||
| PAYE Allowance | 2000@20% | 400.00 | 400.00 | |||
| 10900.00 | 10900.00 | 8668.40 | 8668.40 | |||
| Insurance Contributions | ||||||
| 28250@6% | 1695.00 | 1695.00 | 52@45.90 | 2386.80 | 2386.80 | |
| 6550@2% | 131.00 | 131.00 | ||||
| Total Deductions | 12726.00 | 12726.00 | 11055.20 | 11055.20 | ||
| Net Salary after Tax and Insurance | 27274.00 | 27274.00 | 28944.80 | 28944.80 | ||
Conclusion
The current exchange rate between Ireland and the UK is IR£1:STG£0.80. A couple with each person earning STG£40,000 in the UK would each earn IR£8,907 less take home pay in Ireland under current tax laws in both countries.
The real effect of this cannot be measured until the cost of living is examined in both countries. Sterling cost of living expenses will be 25% more when converted to Irish pounds at the current exchange rate and the difference in living costs between both countries could be greater than this.
Appendix 1 - A Single Person With A Salary
Of £40,000 Per Annum
Appendix 1B - A Married Couple With A Single
Salary Of £40,000 Per Annum
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