UK taxes are high

Taxes in England

Income Tax

Every person in England has one certain allowance. If you work as a foreigner in England and thus receive your income there, you are generally subject to the UK taxation. This is where that counts Income from work, then the investment income from interest and then the from dividends. As soon as the Allowances deductedn only then becomes the the remaining amount is taxed depending on the tariff band.

Furthermore, there is a tax liability if you are longer than 183 days a year stop or your Resident in England to have. Currently lying the following percentages in front:

£ 0 – £ 11.0000%
£ 11.001 – £ 43.00020%
£ 43.001 – £ 150.00040%
from £ 150,00045%

Note:What should also be mentioned is that if your annual income exceeds £ 122,000, the tax allowance no longer applies. Accordingly, taxes must be paid on the entire annual income.

Value Added Tax (VAT)

The standard tax rate in England is 20% and is charged on most goods and services. As in many other countries, there is also the reduced value added tax:

tax ratecriteria
5 %Heating oil, electricity, natural gas, social housing
0 %Books & newspapers, almost all food, medical equipment, children's clothing, taxi rides, bus tickets, etc.

National Insurance Tax

In England you also have to pay the social security contributions, which too withdrawn from your salary become. National Insurance contributions are paid by both employees and employers. The amount depends on the type of employment and income. After that there is six different classes and depending on the class, they are obliged to pay a certain amount of contributions.

Income tax return (tax return)

Since the income tax as in Germany automatically paid in England will have to be personal do not submit a tax return. In the same way, taxes are deducted beforehand from pensions and savings.

However, if you have other income or are directly asked to file a tax return, then is in paper form to be submitted to the UK tax office HM Revenue & Customs or online on January 31st.

Note: A tax year is valid from April 6th of one year to April 5th of the following year.

For more information about England and life there you can visit our “Living in England” page. Our “Moving to London” and “Moving to Manchester” pages are also useful for learning more about these destination cities.


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