| Guides: London > Work / Tax system |
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| 11/06/2008 |
You have 2 levels of taxes.
[Tax year 2008-2009]
20% up to £36,000 annual gross income
40% over £36,000
http://www.hmrc.gov.uk/rates/it.htm
The main personal allowance is £5,435
(Example: if you earn £50,000 you will pay:
20% * (36,000) + 40% * (50,000 - 36,000 - 5,435)= £10,626 ).
When you have not registered with the Inland Revenue, you
get a temporary insurance number (TN+date of birth+M
for masculine, F for feminine), which is used to establish
your tax level. So, before getting your NI
number you may pay too much tax (sort of “Emergency
tax”) and you can ask for a refund
later. In your letter
of complaint, you will attach your P60 and payslip
of April last tax year, and include the reference number
of your company and your NI number. |
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 Comments
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 EasyExpat -  15/04/2011 |
| National Insurance increase from 4th April 2011 |
From 4th April 2011 NI rates are increasing across the board. The updated rates are:
Employee's NI cost - Employees will now pay 12% NI cost on earnings over £139 and under £817 per week. Over £817 per week this is set at 2%.
Employer's NI cost - This is now calculated as 13.8% of everything over £136 you earn per week. The changes will affect your take home pay from 4th April 2011.
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| TorontoExpat17 - 23/07/2008 |
| Leaving the UK |
If you leave the UK part way through the tax year, you will probably not have got your full tax free allowance which is around 5500 pounds. Make sure you complete your P85/P86, together with a P45 and P60 to get your full tax back. I downloaded a free guide from: http://www.tax-rebate.org/claim-tax-rebate.html
They also have a tax rebate calculator which you can use to check to make sure you are due a refund before wasting your time:
http://www.tax-rebate.org/tax-rebate-calculator.html
Here in Canada we pay about 33% less in tax. Don't let Gordon Brown and the rest of the government take any extra. |
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| Hervé - 25/10/2007 |
| Pre-budget report 2008/2009 - Major tax changes for expatria |
Our worst non-UK domiciliaries tax nightmare is happening.
The 2008/2009 pre-budget report unveils a significant will to levy tax on resident but non uk-domiciled expatriates who have earnings arising abroad, untaxed in the UK under the combined non remittance and non domicile rules.
The pre-budget states that the plans are to amend quite a few rules, and we have highlighted the most relevant:
1)The calculation rule for days of presence in the UK : The day(s) of arrival and departure will now have to be included in the total.
As we understand it, this means that people coming on Monday and leaving on Friday who used to be regarded as spending 3/7 days in the UK will now spend 5/7 days in the UK , and very likely more than 183 in a tax year.
2)7 year rule
Anyone reaching or having previously reached 7 years in the UK will be taxable on their worldwide income, unless they choose to use the remittance basis rule and pay a 30.000 GBP fixed tax charge. In short, you will need to earn a lot to reckon that the 30.000 GBP tax is a light bite. For the rest the 40% bite may be a massive one.
3)The definition and rules for Remittance will be reviewed in order to increase the scope of income liable to tax.
Using the year of remittance versus the year an income arose will not be accepted anymore
The Source ceasing Rule will disappear
4)Non domiciled IT Contractors (or else) using Channel Islands schemes via trusts to legally convert their income into non taxable income may lose that benefit.
This is only a pre-budget, but it sends a strong enough signal of what is to come.
Although it is quite difficult to quantify the impact on expatriate demography, it will clearly make the UK a lot less attractive to many high earners as the UK income tax rate is quite high, and the cost of living in London the highest in Europe .
And as I heard this morning if the money is not there anymore, why not choose quality of life instead!
This article is not a legal statement and should only be read as a view expressed by the writer.
For further information contact www.adexpat.net |
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| sextant - 22/05/2007 |
| Tax refund UK |
You can also ask to a Tax Refund Company like Sos Taxes: www.sos-taxes.com
They have low commission and based in London |
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| payroll - 25/05/2006 |
| important information for expats |
Whether you have a national insurance number or not does not affect the level of tax you pay. Your NI number is merely a means of identification, if you don't have one then any NI contributions you pay will not be put to your own personal NI record, and you will have to prove what contributions you made to NICO(National Insurance Contributions Office)by sending in documentation such as a P60. There are instructions on the DWP website on how to apply for a national insurance number. If you are new to the country you must speak directly to the InlandRevenue who will give you the correct forms to complete to avoid beingemergency taxed. Your new employer will be able to give you the phone numberof the correct IR office. I work as a payroll officer in London, so have lots of experience ofdealing with expats from abroad! |
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| Hervé Gaudin - 09/02/2003 |
| Tax reliefs |
When you are seconded to the UK and providing you fill in a P86 showing your intention to remain in the UK on a temporary basis, you can claim tax relief on your housing costs and travelling costs.
Taxation may vary a lot if you are on a French payroll or a UK payroll.
If you are a non ordinary resident you can also claim tax relief for days worked outside the UK.
Worth taking a good look at it !
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| Jean Louis Faudon - 20/12/2002 |
| Useful tax calculator |
The following hypertext is a useful tax calculator for the UK:
http://listen.to/taxman
This should give you a good idea of what your UK disposable income will be.
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| Cyril - 06/10/2002 |
| UK resident for tax purposes |
UK nationals working abroad remain UK residents for tax purposes unless their contract or time abroad covers at least one whole tax year (April 6 to April 5). If your absence is long enough, but your return visits to the UK total 183 days or more in any one tax year or an average 91 days or more spread across four tax years, you remain a UK resident for tax purposes.
There are various expat tax reliefs and allowances available to help with relocation and travel costs for short-term relocations. |
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| Eric Angenault - 18/05/2002 |
| Working Families Tax Credits |
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