Remember when you first started working and you imagined actually taking home the lion’s share of your salary? Before you realised tax was a thing. The moment you start paying National Insurance and tax, you leave behind your carefree student days and enter the bitter world of adulthood…
But it’s not all doom and gloom. You can still take home a big, fat paycheck thanks to the IOM Gov’s new National Insurance Holiday scheme. Because, in the words of Cardi B, you were born to flex, diamonds on your neck…
The National Insurance Holiday Scheme will increase the take home pay for Isle of Man students looking to return to the Island. In other words, you get to keep more of your hard-earned salary!
If you have successfully completed a full time university degree, higher national diploma or postgraduate course outside the Island on or after the 6th April and then come back to the Island to live and work, you are eligible for the scheme. Woohoo.
You’re also eligible if you have not been tax resident in the Island for the past five years, so if you’ve been dreaming of a return back to the Manx hills, this could be your big moment..
The Isle of Man has a lot going for it when it comes to career progression, higher salaries, and a better quality of life so this new scheme is the absolute cherry on top of a slice of bonnag.
How does it work?
As an example, under the new scheme, if you earned a £30,000 salary, you will take home £27,450 in their first year of living in the Island – that’s £3,650 more than if you lived in the UK!
Just imagine what you could do with that extra couple of thousand pounds.
You will be charged National Insurance during your first 12 months of employment as normal, but you can then apply to the Income Tax Division for a refund of your contributions.
It would be like Christmas all over again!
The Isle of Man is truly a special place to live and work and this new scheme is another way our Government are working hard to provide opportunities to attract new talent to the Island and grow our economy.
Minister for Enterprise, Laurence Skelly MHK told us:
‘This scheme enhances the already compelling reasons to live and work in the Isle of Man. We have excellent quality of life, opportunities for career progression and average salaries which are higher than the UK. We believe this will be a fantastic incentive for Manx nationals to return home, as well as attracting new workers to our shores.”
With the demand for skills currently outweighing supply, the attraction of additional new workers and encouraging the return of our Manx educated students are also two vital themes of the Locate Strategy. The announcement by our colleagues in Treasury demonstrates a tangible way in which Government can achieve this. It also establishes excellent cross-Government working relations in order for us to best support the needs of our residents, businesses and economy.’
- Comes into effect from April 2019
- No minimum salary requirement for graduates, minimum £21,000 for skilled workers
- Available for those who have successfully completed a full time university degree higher national diploma or postgraduate course outside the Island
- Must have returned to the Island to live and work
- Must remain in employment for a continuous period of at least 12 months.
Find out more about the National Holiday Scheme here…