The fiscal year in UK the goes from 6 April to 5 April the following year.
Who pays taxes?
If you work less than 183 days in the UK, you can receive your salary tax free, but you will have to pay in your country of residence. If you work and/or stay in England most of the time, you become “Tax Resident” and you have to pay taxes in the UK for that fiscal year.
National Insurance Number or NINo.
When a foreigner comes to the UK to work it is vital he gets his NINo. If not it is illegal and you could end up paying incorrect tax. This leads to tax liability in the future and certainly a debt. You will probably pay a fine. You will need to get your NINo within 30 days or before starting work in the UK. We will help you on how to do this.
Each fiscal year there is a “Personal Allowance”. This is the money you can earn without having to pay tax. If you win more than that amount, you will pay tax only on the amount exceeding the personal allowance. However, the personal allowance is progressively reduced the more money you earn.
To pay your taxes in the UK, you can do it:
• As “PAYE” (Pay As You Earn). You are “Employed” to work “Por cuenta ajena” in Spain. You have a payroll number and your employer will pay taxes directly discounting it from your salary each month according to calculations by the HMRC (Her Majesty’s Revenue and Customs) in the UK (the equivalent to “Hacienda” in Spain). It is difficult to include deductible expenses to your Tax Return if you are employed. Moreover, generally the taxes you pay are higher than they should be. The HMRC calculate your monthly payments for the year and if you have not worked the full tax year you will be overcharged. You can claim this money back but it costs time and “paperwork”. Should this happen to be the case, we will advise you on how to do this. It is notthe best way that we would recommend you pay your taxes
National Insurance Contributions or NICs.
It refers to payments or contributions to the Social Security. It is different if you are an employee or you are self- employed. It is more convenient if you are self- employed, although in general terms, the contributions are not a big deal.
Council Tax or Impuesto Municipal.
It is a local tax, collected by local Councils to offer services such as education, police, roads, waste collection, library and community services. Each Council sets its own tax rate. It is paid by every citizen, with some exceptions. The amount you pay depends on the assessment of the house or property you live in according to the council. This is not necessarily the same a