The Isle of Man Treasury Minister, Alfred Cannan MHK, announced in today’s Budget that the National Insurance Holiday Scheme, a successful relocation incentive launched last year to support employers with their recruitment programmes and to increase the Island’s population, will remain in place for another 12 months.
The scheme will continue to be open to anyone who has not been tax resident on the Isle of Man for the immediate last five tax years, and who takes up both residence and full time, permanent, employment with a gross salary of £21,000 or more. The minimum gross salary is not a requirement for returning Isle of Man students.
Under this scheme, in place since 6th April 2019 and now accessible until April 2021, eligible residents can apply for a refund on the National Insurance contributions for their first year of living or returning to the Isle of Man, with refunds capped at £4,000.
Isle of Man’s Treasury Minister, Alfred Cannan MHK said:
‘The past three years have seen high employment and a buoyant jobs market due to this Government’s measures which have stimulated the economy and enabled more people to find work. This scheme has been successful in attracting new workers to our shores and will continue enhancing the already compelling reasons to live and work in the Isle of Man’.
Under the renewed scheme, an individual earning an annual salary of £30,000 will take home £27,450 in their first year of living in the Island – £3,650 more than their UK counterparts. This represents a 15% increase compared with the UK as those earning the same salary would keep £23,800.
Isle of Man spending equates to £13,220 per person
As announced in today’s Budget, total Government gross spending projected for 2020-21 equates to around £13,220 per head for every man, woman and child of the Isle of Man’s population, 37% more than the UK average of £9,584.
More than £540 million is scheduled to be invested over the next five years, demonstrating confidence in the Manx economy and providing a platform for growth.
Emphasising the focus being placed on maintaining the Island’s reputation for enterprise and opportunity, £5m will be set aside for schemes to support new businesses and more than £500,000 will be invested in the Island’s young people through apprenticeships, providing skills relevant to the Manx economy.
Best place to live in the British Isles
The Isle of Man, which has 84,000 residents, was ranked the best place to live in the British Isles and 12th best in the world by the HSBC Expat Survey in July 2019.
This is the longest-running independent global survey of expats that looks at criteria such as economic stability, wellbeing and family benefits such as finance, education, healthcare and quality of life to provide insights on how countries compare across the globe.
The Isle of Man, Jersey, and Guernsey were all new entries to this year’s league table with the Channel Islands ranking at 19 and 25 respectively. The United Kingdom was named 27, and Ireland, 14.
Work-life balance, outdoor activities and a strong sense of community are some of the reasons that expats stay in the Isle of Man longer than planned. 74% of respondents said their quality of life had improved since moving to the Isle of Man, and nearly half said their mental wellbeing has improved.
Those who have relocated highly appreciate the local landscape – only New Zealand and Australia ranked higher. The Isle of Man was the first jurisdiction to be named an UNESCO Biosphere, a status that recognises a balance of people and nature and celebrates and protects the breadth and range of biodiversity. The Island has 95 miles of beautiful coastline, including 32 beaches, and 26 amazing official dark sky sites for stargazing.
The Island is also more attractive to first-time expats – for 64% of those relocating, it was their first experience of living abroad.
Employees who wish to take advantage of the scheme will be charged National Insurance during their first 12 months of employment and can then apply to the Income Tax Division for a refund of their contributions. To qualify, the employee must remain in employment for a continuous period of at least 12 months.
Assumes population of 84,353 per Economic Affairs, Isle of Man Government Cabinet Office (September 2019).
In 2018/19, public spending per person in the UK as a whole was £9,584: in England, it was £9,296; Scotland, £11,247; Wales, £10,656; and Northern Ireland, £11,590.