The UK has always been an attractive country for immigration. However, one of the main aspects of living in a new country is taxation. There are different types of taxes that apply to migrants in Britain, and they can significantly affect the financial situation of new residents. Learn more about the main types of taxes for migrants in the UK, their amounts and important aspects

The UK tax year starts on April 6 and ends on April 5 of the following year. This means that any income you earn between these dates will be taken into account in the tax year and used to calculate the taxes and social security contributions you have to pay.

Income tax for migrants in the UK

Income tax is a mandatory tax payment that UK citizens pay on their annual income. However, it should be understood that not all types of income are subject to taxation, and there are certain exceptions. In this article, we will look at the main aspects of income tax and the types of income that are exempt from taxation.

Income tax is calculated based on the annual income of each individual. The amount of taxation is set as a percentage of the total annual income. It is important to note that there are thresholds that determine at what level of income taxation begins. Total annual income includes the following types of income:

1. Salary;

2. Profit from self-employment;

3. Some types of state financial assistance;

4. Benefits provided by the employer;

5. Income from a trust fund;

6. Interest from savings.

Types of income that are exempt from taxation in the UK

Despite the wide range of income subject to taxation, there are certain types of income that are exempt from income tax. These types of income include:

The first £1000 of self-employment income: Under the Business Start-up Grant program, you can get income tax relief on the first £1000 of self-employment income;

1. Some types of state financial assistance;

2. Single social payment;

3. Child benefit;

4. Financial assistance for housing;

5. Independent Living Allowance (ILA);

6. Maternity benefits.

Remember that tax laws are subject to change, and it is important to keep up to date with current UK income tax rules and regulations. Please consult a tax professional or other appropriate source for the most up-to-date information.

Income tax benefits and exemptions for migrants in the UK

Most UK residents enjoy a tax-free income allowance known as Personal Allowance. This is the amount of income from which taxes are not charged. If your income exceeds this amount, you are only taxed on the portion of your income that exceeds the Personal Allowance.

Tax credits are another way to reduce the amount of tax you pay. They are available to people who meet certain criteria and allow you to reduce your overall tax liability.

The amount of income tax you have to pay each tax year depends on two main factors:

1. How much your income exceeds the "Personal Allowance". You are only taxed on the portion of your income that exceeds this amount;

2. How much of your income falls into each tax category. There are different tax bands in the UK with different tax rates.

To check whether you are paying the right amount of tax, or whether you need to pay tax, contact Her Majesty's Revenue and Customs (HMRC). They will give you detailed information about your tax status and how to calculate your taxes.

Paying social security contributions for migrants in the UK

The social security system in the UK provides social protection for citizens. Social security contributions are mandatory for those who are over the age of 16 and meet the following criteria:

1. Employees earning more than £242 per week;

2. Self-employed persons with annual income of £6725 or more.

Paid contributions entitle you to social assistance and state pension. A social security number is required before you can start paying contributions. The social security system in the UK ensures that citizens receive support and protection in case of need.

How to pay taxes for migrants in the UK

Taxes in the UK may seem confusing, but the basic principle is quite simple. If you are employed, your employer deducts income tax and social security contributions from your salary, and you do nothing.

But if you have other sources of income, such as self-employment or income from the sale of assets, you will need to submit a self-assessment tax return. This declaration will help you to correctly calculate the amount of tax you have to pay. Also, if you earn income abroad, this may also affect your tax situation.

Your residency is also important. If you are "resident" in the UK, you will pay tax on foreign income. And if you were previously resident in the UK, you may have to pay tax on UK income or gains made while abroad.

Most people pay income tax through the 'pay as you go' system. Your employer deducts income tax and social security contributions before paying your salary. The amount of tax to be withheld will depend on your tax code.

Consequently, taxation for migrants in the UK can be complex and depends on many factors, including status, type of income, amount of inheritance and property ownership. Understanding the taxation system is important to avoid unpleasant surprises and to ensure that all obligations are paid on time and correctly. For more detailed information and advice on tax matters, it is recommended to contact professional tax advisors or HMRC.

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Igor Usyk - Head of Legal Department at Visit World

For safe relocation to UK, obtaining refugee status and employment, use the advice of an international lawyer.

We help to solve complex and simple issues for your comfort and safety in the UK.

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