Get Your Head Around Tax Issues
What are the various taxes you need to pay in the UK? There are quite a few. If you want to find out what some of them are, then continue to read the rest of this article.
1. Income Tax– If you work, and you have exceeded your personal tax allowance, then you will pay income tax. As of now, if you make under £10,600, then you don’t have to pay income tax. If you make more than that, then you will either pay the basic rate, higher rate or the additional income tax rate.
2. Council Tax– If you live in a residential property, then you can expect to pay council tax. How often you will pay council tax depends on where you live and the amount you will pay also depends on where you reside. Council tax go towards the local government so they can fund various services they offer to the public.
3. VAT– Value Added Tax, or VAT, is a sales tax and you get charged it when you pay for certain items. Also, if you run a business in the UK, then you might be required to collect VAT tax from people and then pay it to the government. If you are a consumer, there are many items and products that are exempt from VAT, but you will know whether or not you have to pay VAT on a product before you actually purchase it.
4. National Insurance Contributions– If you work for yourself in the United Kingdom or if you’re an employer or you work for someone else, then you might have to pay National Insurance Contributions. The amount you will pay depends on how much you make, as some people are exempt from paying this. Generally speaking, National Insurance Contributions are paid when income taxes are filed and paid, and you will usually find out whether or not you’re exempt from National Insurance Contributions when you file your taxes at the end of the tax year.
5. Other Taxes– Other taxes you may be required to pay include motoring tax and capital gains tax. Corporate tax is another one you might have to pay. Stamp duty is another tax you need to pay in the UK, if you transfer shares and some securities.
Those are just a few taxes you need to pay in the UK. If you plan on moving to the UK, it’s helpful to know what you may have to pay. Refer back to this article when you need to be refreshed on what taxes you may be required to pay.
This guide on UK tax was brought to you by Avery Clifton who are an Accountants in Reading. Visit their website to find out more about the services they offer.