In the United Kingdom, income tax is collected at source on salaries according to the PAYE system (Pay As You Earn).
Once you have found a job in the country, your employer will send your personal details to the "HM Revenue & Customs" so that they can apply a special "Tax code" according to your situation and income level. Each tax code contains a letter defining your fiscal status : “L” if you are aged 65 ore above, “NT” if your non taxable and so on.
Tax collected at source also includes social contributions. Everything will be clearly stated on your payslip.
At the end of the fiscal year, you will have to send your "Tax return file" only if you have additionnal incomes to declare (benefits, income from renting etc.). You will also have to request a tax return file if you feel you have not paid the right amount of tax, whether you paid too much or not enough. You can request a tax return file online. For more information about the tax system in the UK, please visit the HM Revenue & Customs website at http://www.hmrc.gov.uk/.
Income tax rates are as follow:
|
Income |
Tax rate |
|
0 £ to 2,320 £* |
10% |
|
2,231 to et 34,600 £ * |
22% |
|
Beyond 34,600 £* |
40% |
* beyond the tax allowance of £ 5,225 per individual
Useful links:
HMRC
http://www.hmrc.gov.uk/rates/it.htm
Advice guide – UK
http://www.adviceguide.org.uk/
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