Tax Rates in the UK

By June 30, 2021 No Comments

As in every country, you have to pay a certain part of your earnings to the government as tax in England. In the UK, taxes are calculated from 6 April to 5 April.

We can list the types of taxes applied in England . We can list taxes such as income tax, corporate tax, dividend (profit distribution) tax, capital gains tax, VAT, stamp. It has its own income tax. Taxes were first discussed in general terms, and then income tax was examined and the income of each individual was calculated and explained with different discounts. In addition, tourists coming to the country are also considered and tax reductions or tax exemptions are taken into account. Finally, the dates on which they will pay the taxes were determined. Everyone who earns within the borders of the country has to pay taxes. Even if he is not a British citizen, someone who spends one hundred and eighty-three days in the country becomes a taxpayer. But you have less than one hundred and eighty-three days, but you have earned, you have to pay taxes as much as this income.

1. Income Tax

Taxes levied on the income of natural persons. income tax in the UK divided into three segments. It includes people with an annual income of less than one thousand five hundred pounds in the ten percent. Taxes are applied to those who fall into the twenty-three percent segment, those with an income between one thousand five hundred and thirty-two thousand pounds, and those who are over thirty-two thousand pounds in the forty percent segment. As in Turkey, tax evasion is a major crime and has heavy sanctions in the UK.

2. Corporate Tax

It is the tax levied on the value of the monies earned by your business during the fiscal year. It must be paid nine months and one day after the accounting period. Pay is usually March thirteenth which means you have to pay the tax on a January.

3. VAT

VAT rates in the UK are seventeen and a half percent. Unlike Turkey, the VAT rate is zero percent for needs such as medicine, children’s clothing, education and food. Apart from these, those whose turnover exceeds fifty six thousand five hundred pounds for self-employed pay VAT. Penalties up to one hundred percent are applied for those who avoid paying VAT, that is, those who evade taxes.

4. Council Tax

It is the tax collected for the municipalities to offer their services better. Services such as schools, roads, libraries. Not all municipalities collect the same tax. The municipalities of the region decide the taxes to be collected from the houses in the regions. Houses that are not subject to council tax in the UK are not taxed in places such as unfurnished houses, houses that are empty for various reasons. In addition, houses where people under the age of eighteen live are also exempt from tax. In the municipal tax, the number of adults is taken into account when taking into account the taxes. If there are people in need of care or disabled at home, tax deductions are applied.

5. Tax for Visitors

Tourists who stay in the country for less than six months can get a refund of their taxes. It is obligatory to show an invoice in this transaction, which is a tax refund. For example, you can get the tax refund by showing the invoice of the product purchased from the store.

6. National Insurance

National insurance helps you increase your pension. Receives your payment via PAYE when you earn for limited companies. The payment is made to HMRC until January 31st.

Double Tax Avoidance Agreements

There are eighty countries including Turkey. It is included in the double taxation avoidance treaty in the UK. With this agreement, people will be exempted from paying double tax in the countries where they live. Some people do not have to pay taxes. Some of these people are as follows;

1. Less than one hundred and eighty-three days in England.
2. Those who are not domiciled in the UK.
3. Persons who do not stay in the UK for more than three months each year for four years or more are not taxed.

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