What do British immigrants need to know about taxation?

# UK Immigrants # Introduction Many immigrants immigrate to the UK to improve the superior social welfare system. However, there are also many taxes to pay after immigration. Let's introduce what taxes new immigrants in Britain have to pay. Welcome to read!

What do British immigrants need to know about taxation?

I. Individual income tax

On the basis of classified income, comprehensive income is taxed. Taxable income is divided into six categories, namely

(1) Rent, rental commission and similar payments obtained from operating real estate such as land and buildings;

② Forest land income;

(3) Interest income from British and foreign public bonds paid in the UK;

4 wage income;

(5) Income from dividends paid by British resident companies;

⑥ Income from business and professional practice, income from foreign business and property, income from interest withheld from sources, pension, royalties, interest on foreign securities and other types of income.

Second, corporate tax.

That is, enterprise income tax, 1947. The Income and Corporate Tax Law promulgated by 1970 and the Capital Income Tax Law promulgated by 1979 are the main tax laws and regulations. Corporate taxpayers are divided into resident companies and non-resident companies.

Companies include entities (limited or unlimited) registered according to the Company Law and other laws and regulations, as well as unincorporated organizations other than unit trust companies and partnerships approved by the Ministry of Commerce. The share of partnership members in the partnership profits shall also be paid as a part of the total taxable profits in the corresponding accounting period.

Resident company: refers to the company controlled and managed by the central government in Britain. The location of the board meeting is the basic criterion for determining the residence. No matter where the company is registered and where the actual activities are carried out, the domicile in Britain is a resident company. Resident companies must pay taxes on their global income.

Non-resident companies: companies that are not resident companies (including foreign companies). Non-resident enterprises only pay taxes on income from Britain, which is often determined by referring to the relevant double taxation treaties between the two sides.

The taxable income range of corporate tax is similar to the six categories of taxable income of personal income tax. The calculation method of taxable income is to add the total taxable profit of the company in each accounting period (including the current income calculated according to different categories) to the capital gains, and deduct the losses, expenses and investments that are allowed to be deducted. Income from abroad should be included in the total profits whether remitted back to the UK or not, but the income from foreign subsidiaries can only be attributed to the British parent company after the actual distribution of profits. For the total net profit obtained, a single corporate tax is levied at the proportional rate. The tax rate is published once a year.

Income from foreign sources of resident companies, whether under double taxation treaties or through unilateral relief, is exempt from double taxation. Profits made by non-resident companies through their branches or agencies in the UK shall be subject to corporate tax. Other income from Britain shall be taxed at the basic tax rate, except those protected by double taxation treaties.

Corporate tax also stipulates accelerated depreciation, and encourages taxpayers to postpone the tax on their capital gains when reinvesting the sales income of some business assets in another asset, so as to realize the government's policy of encouraging capital investment and promoting the balanced development of regional economy.

Three. the social insurance tax

The purpose is to provide funds for medical insurance, retirement and unemployment. Taxpayers are both employers and employees. For employees, the income below the prescribed lower limit and above the prescribed upper limit is not taxed, and the income within the upper limit and lower limit is levied at a graded progressive tax rate; For the employer, according to the total wages and salaries paid to employees, there is only a lower limit, no upper limit, and a progressive tax rate is also adopted. Employees and employers are divided into two situations: within and outside the national pension plan, and the applicable tax rates are different. Under the same circumstances, the tax rates of employers and employees are also different.

Four. value-added tax

1973 was implemented on April 1 day. The value-added tax law of 1983 and the decree issued by the Commissioner of Customs are the legal basis of value-added tax.

Value-added tax is levied on all goods and services provided by commercial activities carried out or promoted in the UK, as well as imported goods and specific services (excluding goods and services that are duty-free and non-taxable) entering the UK. Export commodities, food, books, construction, transportation, medicine and other commodities and services are subject to zero tax rate, while other commodities and services are subject to uniform standard tax rate. The tax base is the value of the goods (or services) provided, which is usually the total cash reward received by the goods (services) provider (if the reward is in kind, it is calculated according to its open market price).

Verb (abbreviation for verb) tariff and consumption tax

Tariffs are only levied on goods imported from countries outside Europe. Levy goods tax on specific categories of domestic or imported goods (mainly oil, alcoholic beverages and tobacco). Different kinds of goods have different tax rates.

Stamp duty on intransitive verbs

Collection vouchers involving asset transfer, property lease, share capital issuance and increase. The tax rates vary.

Further reading: the welfare of British immigrants

Britain is the birthplace of social welfare system in western Europe, and it is also one of the countries with the most perfect social welfare system so far. It includes three systems: national medical and health system, social service system and social security system, and has the characteristics of high degree of socialization, many projects and strict management.

1. Welfare of children and pregnant women

1) Children's Welfare Fund: Welfare Fund is designed for children under 16. Children between 16 and 18 are also eligible if they are still studying in non-tertiary institutions.

2) Family allowance: If you work at least 16 hours a week, your income is low and you need to take care of at least one child, you are eligible to apply. The allowance depends on the family income and the number of children.

4) Statutory salary of pregnant employees: When an employee is pregnant, the employer must pay the salary every week, and the amount depends on the employee's income and amount.

5) Single parent allowance: Single parents and those who have to take care of their children alone can receive single parent allowance. Apart from child benefits, this allowance is only paid to the first child.

2. Retirement benefits

Basic retirement benefits are set for people who are over retirement age (over 60 for women and over 65 for men) and meet the requirements of national insurance. People who want to take care of underage children can get other benefits.

3. Unemployment benefits

Welfare payments are made every two weeks for one year. Applicants must be able and active in job hunting, and must pay enough first-class national insurance.

4. Welfare of low-income people

1) Income subsidy: set for people who are above 18, whose income is below a certain level, and who work no more than 16 hours per week. Applicants must be able to work and actively seek jobs.

2) Allowance for nursing homes and nursing homes: The applicant has been admitted to nursing homes or nursing homes before1March 3, 9931. They can get higher income subsidies to pay for hospital expenses.

3) City Council tax allowance: handled by the local city Council to help low-income people pay the city Council tax.

4) Rent subsidy: The City Council pays the rent on behalf of those in need.

5) Medical expenses support: free medical expenses, dental treatment, eye examination, glasses or contact lenses.

6) Other financial assistance: If a relative is serving a sentence in prison, the applicant can get income assistance, family allowance, disability work allowance and transportation assistance.