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Taxes & Government

Where can I find official information about employment law, taxes, social security, car regulations etc.?

Go to citizens.eu.int. This official EU website provides extensive information for EU citizens on working and living in the UK (or other EU countries), with detailed explanations of employment law, taxes, social security, car regulations etc. in many languages.

A huge resource about UK public sector information on the Internet with links to all government agencies can be found at open.gov.uk.

What types of work permits are there in the UK?

Visit www.workpermit.com or the Fulbright website.

What are the basic rules of the UK tax system?

Taxes in the UK are administrated by the Inland Revenue. Go to their website for almost any question on taxes in the UK. The website's self assessment section guides individuals and businesses through completing and returning tax forms electronically.

When starting to work in the UK, you are given a tax code based on your salary level and form of employment etc. This code determines the amount of taxes automatically deducted from your gross salary payment every month.

At the end of the tax year you file your tax declaration. Based on this declaration your actual taxes are calculated and you will have to make a supplemental payment or will receive a refund depending on how much taxes you already paid.

If you leave a job, you'll get a P45 form which you need to give your next employer. At the end of the tax year you will receive a P60 form which you need for your tax declaration. If you are leaving the UK and are not planning to work again before the end of the current tax period, you may apply for a tax rebate (ask for a P85 form).

What is the tax year?

The tax year always runs from 6 April to 5 April of the following year.

What are the UK tax rates?

The rates shown here are valid for the 2005/06 tax year:

Your annual 'Personal Allowance' of tax-free income is £4,745. Income over and above this amount will be taxed in three bands:

  • For the first £2,020 of income you will be taxed at 10%.
  • Your income between £2,021 and £31,400 will be taxed at 22%.
  • Your income above £31,400 will be taxed at 40%.

When and how do I file my tax declaration?

The filing deadline for the tax year ending in April is the end of the following September.

Is that it?

No, this is just a very crude basic fact sheet about UK taxes. Learn more by going to the Inland Revenue website

And of course it is highly recommended to get professional advice. Ask your employer if they have specialists who can help you for free.

 

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