Skip to content 
UK Tax Blog
Director Salary and Dividends Guide
As a company director, one of your most important financial decisions is determining how to compensate yourself. This choice impacts not only your personal finances but also your company’s tax position and long-term growth potential. Finding the right balance between salary and dividends can significantly enhance your tax efficiency while
How is income tax calculated?
Income tax in the UK is calculated based on how much money you earn over the course of a year. The process might seem complicated at first, but it follows a simple idea: you pay tax on the money you earn above a certain amount, called your personal allowance. First,
Who is required to pay income tax in the UK?
Income tax is a type of tax that the UK government collects from the money people earn, such as wages, salaries, and other types of income. But who exactly needs to pay it? In the UK, most adults who earn money have to pay income tax. If you have a
Do You Need to Pay UK Tax on Money Earned Abroad?
When you earn money in another country, income is completely separate from your life in the UK. However, if you are a UK resident or have strong ties to the UK, you could still be required to pay tax on money earned abroad. Understanding when and why you might need
Global Earnings Made Simple: Declaring Foreign Income to HMRC
In today’s connected world, many UK taxpayers earn money from outside the country. If you are a freelancer with clients abroad, a property investor with foreign assets, or an employee working overseas, it is crucial to declare your foreign income correctly. Understanding Foreign Income Foreign income is any money you
Balancing Charge Basics: When HMRC Takes Back Part of Your Allowance
When an asset is disposed of, a final adjustment known as a balancing charge may be required. Below are explained the fundamentals of balancing charges, outlining when HMRC reclaims part of your previously claimed allowances and how to manage this aspect of your tax affairs effectively. What Is a Balancing