How does tax in UK work?

Does anyone know...?
JemimaR
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Joined: 20 Mar 2018 12:49
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How does tax in UK work?

Postby JemimaR » 22 Mar 2018 18:38

Hi all!

I want to move to lovely sunny (not) England for work - but I can't for the life of me figure out how tax works over there. I've looked at sites like this calculator but can't work it out. I'd be working full time for a year and a half before I move back here to actually sunny Spain :) Has anyone been there to work or have a better idea of how income tax works over there? Any advice would be greatly appreciated!
Thanks in advance -J

El cartero
Posts: 467
Joined: 18 May 2015 19:05

Re: How does tax in UK work?

Postby El cartero » 22 Mar 2018 20:38

Basic principal is that once you earn over a certain sum about £11,000 you pay tax at 24p in the pound and it's taken straight from your wages unless you are self employed. On top of this they take national insurance. If you are lucky enough to earn over £45,000 the tax rate goes upto 40p in the pound.
In my mind I live in San Miguel De Salinas, in my wallet I live in Kent

MJT
Posts: 74
Joined: 23 May 2015 08:42
Location: El Raso, Spain & Christchurch, Dorset
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Re: How does tax in UK work?

Postby MJT » 23 Mar 2018 08:00

These are the 18/19 rates

Tax Free Amount. £11,850 per year
UK basic tax rate 20% on annual earnings above the PAYE tax threshold and up to £34,500 (20p in every pound up to £34500)
UK higher tax rate 40% on annual earnings from £34,501 to £150,000 (40p in every pound between £34501 and £150k)
UK additional tax rate 45% on annual earnings above £150,000

MiGustaAlgorfa
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Joined: 19 Dec 2016 21:48
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Re: How does tax in UK work?

Postby MiGustaAlgorfa » 23 Mar 2018 10:22

Hi
MJTs info seems right.
You only pay tax on the amounts above your basic tax allowance (you will be given a tax code)
You may pay emergency tax at first until you obtain your tax code but this should be reclaimable
Your employer should be able to clarify all this for you. If self employed then the HMRC online site should have all the info you need
Regards


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