Some Basics On Income Tax In The United Kingdom

1. Some Basics On Income Tax In The United Kingdom The United Kingdom, like many other countries, opted for withholding tax. This form of payment is the cornerstone of the UK tax system. The other special feature is the determination of the fiscal year: from 6 April N to 5 April N + 1 (N = year). As in France, the UK tax is progressive: the higher the income, the higher the tax. Progressivity is less pronounced in the United Kingdom: the tax scale has fewer tax parameters and therefore rates are rising more sharply. The United Kingdom is therefore more lenient with companies (less taxed than in France) than with private individuals! If all the rules are too much to maintain it will be better to hire professionals who would assist you during HMRC Tax investigations in London. Taxation: withholding tax The United Kingdom tax model is based on a principle: withholding tax through the PAYE system ("Pay as You Earn"). It is therefore up to the British employer to calculate and collect the income tax each month on wages before they are paid. It also takes into account the various deductions to which employees are entitled. From these two elements, the tax levied is adjusted to the income and the situation: the annual regularization is therefore relatively low. Taxation and Family Status Since tax is deducted at source (directly from wages), each taxpayer pays his tax individually. The family situation is therefore little taken into account. Married people although distinctly taxed, are entitled to a deduction. Children also pay their taxes on their side. There are so many criteria to look into and this is why there are more and more HMRC tax investigations in London. Tax reductions Reduced allowance for income above £ 100,000: 50% reduction of the share exceeding this threshold. Examples: Revenue of £ 110,000 -> Reduction of £ 5,000 (10,000 / 2): the final abatement will therefore be £ 3,105 (instead of £ 8,105). The abatement is therefore zero for income of more than £ 116,210. Allowances for the elderly: £ 1,000 for those aged 65-75; £ 1,200 for those over 75; Reduced allowance for income above £ 25,400: 50% reduction of the share exceeding this threshold.

2. + Additional allowance (£ 300 to £ 770) for married couples, one of whom is over 80 years of age. Deductions from taxable wages Certain expenses may be deducted from salary before deduction at source. The employer makes the deductions. The deductible expenses are essentially: Professional expenses: expenditure on supplies, clothing, miscellaneous equipment, travelling expenses, etc. Spousal support payments (pensions ordered by a judge of the former spouse or child less than 21 years of age); Donations to charities. Read the full story at https://goo.gl/GiEZy4 Contact Us JR Accounts 164-166 High Road, Ilford, Essex, IG1 1LL T: 020 8911 8899 M: 07977 048160 office@jraccounts.co.uk http://www.jraccounts.co.uk/