Just moved to the UK and wondering about paying tax. Let’s make sense of those complicated UK tax laws and update you on UK working holiday tax return for non-residents
UK tax laws are complicated and confusing, especially, if you have just moved to the country and are eligible to pay income tax. This article updates you on UK tax returns for non-residents to help you identify the type of tax you must pay if you’ve just arrived in the UK.
Paying Income Tax In The UK As A Non-Resident
If you are earning an income in the UK, You must declare it to HMRC and pay any due tax.
The amount you pay and how you pay, depends on your situation; are you an employee or self-employed (your own boss). If you’re an employee on a company payroll, then your employer will deduct your salary and pay tax under the PAYE system. If you are self-employed then you must submit a self-assessment tax return.
There are tax bands, which define how much tax you pay under each category. Deductions are made under Personal Allowance bands etc. For a new comer to the UK, eligible for tax, the best advice is to seek professional help from a qualified tax consultant. As a leading tax refund agent in the UK, we have the best experience to help you save you hard earned money and only pay the taxman what’s due.
Related Post: How to Pay Your Tax Bill
Benefit From Capital Gains Tax
If you own a property in the UK and earn an income from renting out this property then you must pay tax on that income. If you owned a property and sold it for profit, then you must pay Capital Gains Tax (CGT) which is a type of income tax on the profit you make through the sale.
You are exempt from paying CGT, on profits made if you sell your main residence, provided, you have lived there throughout. There are tax brackets applicable to each category, which we will explain to you once your case is evaluated.
Related Post: How to File Your First Tax Return
There Are Taxes On Foreign Income
The rules governing tax on foreign earnings is complicated, and you must fully understand your obligations via a qualified tax consultant. Contact one of the accountants at Taxback to avoid making mistakes on this complicated tax rule. The savings you make on avoiding any penalties on errors made when filing your foreign income tax, greatly outweighs the fees you pay for a consultation.
For a full scope of your UK income tax obligations, contact us for a consultation, and let us work out your tax file, giving you the best savings.