I'm fairly new here but love the forum. I'm guessing the vast majority of users on here are from the USA and Canada, followed by UK, OZ, NZ and a good smattering from the rest of the world. Although we all have a lot of common ground i'm absolutely fascinated by the sometimes significant differences of expenses and financial quirks from country to country. Fairly obvious example being in the UK all healthcare is free. My jaw literally drops at the financial armageddon some people suffer in the USA due to medical bills. (not a political point just its so far from our experience).
So i thought it might be interesting to list what are probably some average expenses etc for the uk. i'd be interested to see how they compare to others. Obviously these can vary but you get the idea. I have converted all the figures to US $ at £1 = $1.50
UK
Wages and Income
Average Salary - $34,000
Tax - First $14000 tax free
$14000 - $56250 taxed at 31%
$56250 - $200,000 taxed at 42%
Over $200,000 taxed at 47%
This includes National Insurance which is just another tax. Virtually all employed people in the uk have their tax taken from their pay packet automatically. Self employed people submit a tax return. The norm is to be paid monthly by direct bank transfer.
There is a welfare system which is hugely complicated, but in general if you don't have a job you will get about $100 from the govt plus assistance with housing. etc, but its not as generous as it used to be and is under constant pressure from Govt. There are in work benefits for the low paid.
Child benefit - universal for those earning up to $68,000
$28 per week for the first child
$18 per week for each additional child
Housing
Average House Price - $256,000. But very much a split market. London and its surroundings have an average of $680,000 and The rest of the uk comes out about $200,000. Housing is becoming a huge political issue in the Uk as prices and rents soar, allegedly locking out a whole generation of people who wish to buy houses.
Mortgages
Currently around 3% although some very cheap deals for those with huge deposits, rising to about 5% for those with small deposits. The majority of people take out a 25 year mortgage and usually fix the initial rate for anything from 2 - 10 years, before it returns to a variable rate. Recent rules have clamped down on people taking out unaffordable mortgages. Given the high house prices this has caused problems for new buyers. There is usually a mortgage fee of around $1500
Buying and moving.
When buying you pay Stamp duty - a buyers tax of around 1% Solicitors fees come in at around $1500 and a survey of about $600.
When selling you pay the estate agency a fee of of around 1.5% of sale price. (i am always mortified at the high US charges!)
All profits from your own residence are tax free.
Living expenses
Property tax - $1700 per year for an average house. Nearly all households pay this monthly to their local council. Its paid by the occupants rather than the owners, so renters pay this too.
Gas and Electric - $1600 per year
Water - $530 per year
House insurance - $400 per year for both building and contents
House phone and internet - $320 per year
Groceries - $550 per month for the average sized family.
Mobile - $55 per month for an i phone and contract. $20 for a sim only deal
Car Insurance for a beater - $200 per year up to $1000 for a fancy pants car. (MUCH MUCH more for young drivers up to $4000 per year)
Nearly all household bills can be paid monthly by direct debit from your bank.
Petrol - $7 per gallon
New car - $15000 - Starting price for a Ford Fiesta Britain's best selling car.
Starbucks Large Cappaccino - $4
Meal out in local restaurant $40 -$50 without alcohol.
Virtually everything except groceries and kids products include a 20% sales tax in the price.
Student loans
$12000 per year tuition
$5000 per living expenses
Expenses are more than this but you are expected to work or have parents stump up the rest. The vast majority of degrees are over 3 years so most students will leave with around $50k in debts. About 40% of kids go to uni and this number is growing steadily.
Its really more of a graduate tax than a loan If you earn under $28000 you pay back nothing. You pay back 9% of your income over $28000. All debts are cancelled after 30 years. Debts attract 3% above inflation.
Banking and Pensions
Current (checking) accounts are free. There are regular and tax free saving accounts, but rates are obviously terrible at the moment.
Highly competitive Credit card and loan market. Typical CC APR is 17%. (although loads of 0% deals etc) Typical loan rate is well under 10%.
If you have worked you will qualify for a state pension of $8000 per year at aged 65 (although this age is rising over time)
Most govt employees are on Final salary pension schemes typically 50% of you final salary after 40 years. These are considered generous pensions and are under some pressure from the govt.
These pensions have all but disappeared from the private sector replaced with an inferior savings type pension. Contributions are tax free and sometimes matched by employers to varying degrees of generosity. There are many people arguing that we are sitting on a pensions time bomb with the average worker contributing nowhere near enough to sustain any sort of decent retirement.
If you die you can leave assets up to $440,000 tax free, 40% on everything above this. The govt plans to raise this limit to $1,500,000.
Healthcare
All treatment by your doctor is free
All hospital treatment is free.
Medicines cost $11 per item issued but most people do not pay this as they qualify for free.
Dental care has to be paid for, you can choose to have state treatment for a subsidised price, but many people pay for private treatment. Cosmetic work has to be paid for.
People often pay for things like physic, chiropractic services, counselling etc as these are difficult to obtain from the state.
So there you go, a quick run round the financial landscape of the UK. Oh and before the internet police say 'you got that wrong!!!' its just a general summary, calm down.
I'd love to hear how it compares to your situation.
