Hi can anyone please tell me if you have to pay tax on London Waiting?.. My partner works for the NHS and is paid an additional 3000pounds for London Waiting. We looked at moving for a quiter life but he was told he would lose the 3000 if he transfered from central london. I am trying to work out if we moved and he didnt have to pay travel how worse of we would be.
London Weighting is just a salary supplement. Your husband is certainly paying tax on it, and probably employees NI on it as well (depending on his total salary package).
If your partner's total income doesn't exceed �34,840 p.a. (which is the upper limit for paying National Insurance at the full rate) he'll be paying 22% tax and 11% National Insurance on the �3000 London weighting. So, if he moves to a location where the London weighting doesn't apply, he'll actually only lose �2000 in his take home pay.