UK Tax Blog
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
IR35 Survival Tactics for UK Contractors: Stay Compliant
IR35, tax legislation designed to identify individuals who are effectively working as employees while operating through intermediaries, has long been a concern for UK contractors. With reforms in 2017 in the public sector and later in the private sector, HMRC has increased scrutiny. Knowing how to handle IR35 rules is