Taxation in the UK

Taxation in the United Kingdom may involve payments to a minimum of two different levels of government: the central government (HM Revenue and Customs) and local government. Her Majesty's Revenue and Customs (HMRC) is a non-ministerial department of the UK Government responsible for the collection of taxes and the payment of some forms of state support. HMRC was formed by the merger of the Inland Revenue and Her Majesty's Customs and Excise which took effect on 18 April 2005. Central government revenues come primarily from income tax, national insurance contributions, value added tax, corporation tax and fuel duty. Local government revenues come primarily from grants from central government funds, business rates in England and Wales, Council Tax and increasingly from fees and charges such as those from on-street parking.

There are a number of different taxes that you may have to pay in the UK.

You will normally have to pay UK tax on all of your worldwide income if you are a UK resident. In the UK, an individual is assessed for income tax for the financial year starting on 6 April in one year and ending on 5 April in the following year.

You must pay corporation tax if your company is resident in the UK. Corporation tax is payable on worldwide profits after they have been adjusted for tax purposes.

Most working people in the UK have to pay National Insurance contributions (NICs), which are collected by HM Revenue & Customs (HMRC). There are six types of NIC, some of which are paid at a flat rate and some which are linked to earnings. Employers also have to pay NICs on the earnings and benefits they provide to employees.

PAYE (Pay As You Earn) is the system that HM Revenue & Customs uses to collect Income Tax and National Insurance contributions (NICs) from employees' pay as they earn it. You may be sent a PAYE Coding Notice which shows your tax code, which is used by your employer's pay system to calculate how much tax you pay. At the end of the tax year you should receive a P60 (End of Year Certificate) from your employer. This shows how much you have earned during the year and how much tax you have paid on these earnings.

Дата добавления: 2015-07-11