Introduction to British immigration taxes

# UK Immigrants # Introduction The main taxes in the UK are personal income tax, enterprise income tax, value-added tax, national insurance tax, petroleum income tax, inheritance tax and gift tax. Let's introduce the taxes of British immigrants to immigrants. Welcome to read!

Taxes of British immigrants

1, personal income tax

Personal income tax is a tax levied on personal income in Britain.

Taxpayer. British individual income tax payers include British residents and non-residents Anyone who lives in Britain for six months in a tax year is a British resident, otherwise he is a non-resident.

Tax object and tax rate. British personal income tax taxes all income of residents at home and abroad; Non-residents only need to pay taxes on their income from the UK. Personal income tax in Britain is based on taxable income. Taxable income refers to the income from various sources specified in the income tax classification table, which is summarized after deducting the necessary expenses that are allowed to be deducted, and then the balance after deducting the living expenses uniformly. Allowable deductions for living expenses include: basic deduction, dependency deduction, labor income deduction, elderly deduction, illness and disability deduction, widow (widower) deduction and donation deduction. According to the law, these deductions are adjusted with the price index every year.

According to the Avoidance of Double Taxation Agreement or the unilateral provisions of British law, the tax paid by British residents outside the UK (limited to overseas direct taxes) should be given a tax credit.

Calculation of taxable income and taxable amount. The personal income tax structure in Britain is operated by the system of deduction and tax rate differential. Everyone has a personal deduction, which is deducted from the total income before tax to get the taxable income. Of course, the cost of each income has been deducted when summarizing. Personal deduction increases with age, and the minimum amount of 1995 personal deduction is 3445. In addition to personal deductions, there are also deductions for married couples, which also increase with age. In addition, the collection scope and deduction of personal income tax in Britain are adjusted according to the increase of retail price index in that year.

Collection method. British personal income tax adopts two ways: source withholding and verification collection. The former is mainly applicable to the taxation of wages, salaries and interest income. The latter is mainly applicable to the taxation of other income.

2. Enterprise income tax

British enterprise income tax, also known as "corporate tax" or "corporate tax", is a tax levied on the profit income of legal entities. British corporate income tax was collected later than personal income tax, and it was not collected until 1947. Before 1947, the profits of British companies were included in the fourth category of income and paid perennial profits tax. 1947, in addition to corporate income tax, Britain also levied corporate profit tax separately. 1965 When the British tax system was reformed, the previous income tax and profit tax systems were abolished, and a single enterprise income tax was established, and capital gains were included in the scope of enterprise income tax. In the 1980s, in order to stimulate investment and promote economic growth, the British government formulated some preferential tax measures to reduce the tax burden of enterprise income tax, and adopted some special policies for small and medium-sized enterprises to encourage their development.

Taxpayer. The judgment of British corporate income tax payers is based on whether there is a basis. Any company with a domicile in Britain is a resident company; Any company without a domicile is a non-local company. British corporate income tax payers are both resident companies and non-resident companies.

Tax object and tax rate. Britain taxes the global profit income of resident companies; For non-resident companies, only the income of their branches or agents engaged in business activities or property disposal in the UK is taxed. According to the British tax law, the taxable objects of enterprise income tax include business activities and capital gains in various names and ways. British corporate income tax is taxed at a proportional rate, which is fixed every year.

Calculation of taxable income and taxable amount. British corporate income tax is levied according to the tax rate stipulated in each fiscal year (1 April to March1March), but the taxable income of corporate income tax is not determined according to the fiscal year, but is calculated and levied strictly according to the income of the company's operating year. Usually before April each year, the British government will announce the corporate income tax rate for this fiscal year. Taxable profit is the basis of calculating enterprise income tax. Taxable profits are based on "accounting profits" and adjusted according to the provisions of the tax law. The main problem of adjustment is to determine the deductible. Accounting profit is taxable profit (taxable income) after deducting deductible items, and the product of taxable profit and tax rate is taxable amount.

Collection method. British corporate income tax is generally paid in the fiscal year. The accounting year of a British company can exceed 12 months, and the part exceeding 12 months is counted as another tax period. A newly established company shall pay taxes within 9 months after the end of the first fiscal year after its establishment. A late fee of 9.5% will be charged for overdue tax payment, and interest will be paid at 9.5% if the tax paid exceeds the taxable amount.

3. VAT

Value-added tax is a tax levied on taxable goods and services. Value-added tax was levied in Britain on 1973 and promulgated on 1983 >:. Taxpayers of value-added tax include: individuals, partnerships, groups or companies that provide taxable goods and services for the purpose of obtaining income through business processes in the UK; A person engaged in import business. The scope of taxation involves industry, agriculture, commerce and service industry. The tax basis of domestic goods and value-added tax is the total amount of sales and remuneration obtained from selling goods and providing services. The tax basis for imported goods is the remuneration paid or the price determined by the customs. 1994_ 1995, there are three tax rates for UK VAT, namely 17.5% (standard tax rate), 8% (low tax rate) and zero tax rate or exemption. The 8% tax rate applies to fuel and electricity used in China. The zero tax rate is equivalent to the tax exemption that many countries say has the right to recover the tax paid, which is mainly applicable to food, books and publications, passenger transport and export. Tax exemption mainly applies to some banks, insurance and financial services, property transactions, education and health services and some non-profit activities. In order to avoid double taxation, VAT on taxable goods and services is allowed to be deducted. VAT taxpayers declare to the customs four times a year, that is, once every three months. Taxpayers must file tax returns within 1 month after the expiration of each tax return period, and pay the corresponding taxes at the same time.

4. National insurance tax

National insurance tax, also known as social insurance tax, is a tax levied on employers, employees and self-employed. Taxpayers are employers, employees and self-employed. The object of taxation is the labor income paid by the employer to the employees and the income obtained by the self-employed persons engaged in various independent labor activities, and the quota collection system is implemented, with no minimum living expenses and any other tax exemption. National insurance tax is taxed at a proportional rate. The tax rate of employers and employees is the same, and the employer is responsible for withholding and remitting. The British national insurance tax is levied on a non-cumulative basis, that is, the taxpayer's weekly tax payment depends on his income this week, not on his income before and after.

Further reading: British investment immigration process

1. What materials do immigrants need to prepare? Prepare relevant materials according to the requirements of the Immigration Bureau. Remember to ask in advance, and if you are not sure, take it to the immigration office.

2. Submit the prepared materials to the Immigration Bureau for review.

Third, after the data is approved, the first step means that it has passed. Then you can directly prepare the next information.

If you immigrate by investment, you must open a bank account in the Bank of England.

One of the requirements of investment immigration is to invest in British government bonds for five consecutive years. After opening an account in the UK, transfer the money to this account and keep it for 3 months. In this way, the government can guarantee that the subsequent purchase of government bonds is guaranteed.

Six, according to the requirements of their own immigration, prepare the visa information again, and then submit it to the immigration office for review.

Seven, after passing the exam, you can get a British residence visa. After obtaining this visa, it means that you can live in the UK.

8. Obtaining a residence visa is only proof of living in the UK. After entering the UK, within three months, you must remember to log in to the relevant system and make investments to buy government bonds.

Nine, it takes about four months to get a residence visa. Most of them don't need an interview, but they will be interviewed occasionally. Under normal circumstances, the residence visa obtained is 2 years. After obtaining a visa, you can also apply to the Immigration Bureau to extend your residence visa to three years.

Ten, continuous investment for five years, you can get permanent residency in the UK. If you have not obtained the right of permanent residence, you should apply for a visa half a month before the visa expires.