Self Assessment Tax
The United Kingdom has a relatively low tax rate compared to some of its European neighbors, such as Denmark and France. The average UK citizen pays between 20% and 40% in taxes, depending on how much he earns.
If you start working in the United Kingdom, you will be required to pay the income tax.The UK income tax system follows the PAYE (Pay as You Earn) system, so the tax you pay is usually deducted from each monthly payroll.
How to pay your taxes in the United Kingdom?
You must apply for a national insurance number (NI) (a national insurance (NI) number) in the United Kingdom to work, receive a pension, use the public health service and pay taxes. It is important to request an NI number as soon as you arrive in the country, as it may take several weeks to be issued. Most employers allow you to work if you have a national insurance confirmation that your application is being processed.
Once you have found a job in the country, your employer will send your personal information, including your national insurance number, to HM Revenue & Customs (HMRC), who will apply a special tax code according to your situation and level of income. . Each tax code contains a letter that defines your tax status. E.g. "L" if you are 65 years of age or older, "NT" if you are not taxable, and so on.
The tax collected from your payroll also includes social contributions such as national insurance. Each tax collected is clearly indicated on your payroll.
At the end of the fiscal year, you will be required to submit your tax return if you have any additional income to report (some state benefits, rental income, paid hobbies, etc.).
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