How much tax do I need to pay in the UK?
If you work in the UK for any length of time, you will need to pay tax in the UK. The tax year starts in early April. There are a few ways you can be taxed on your earnings depending on your type of UK employment, either PAYE and managed companies.
The UK tax system operates on a sliding scale very similar to most Western Countries.
The tax brackets and the amount payable for the current tax year are shown below: |
||
| Taxable Band Allowances | 2007-08 (£) | |
| Starting rate 10% | 0 - 2,230 | |
| Basic rate 22% | 2,231 - 34,600 | |
| Higher rate 40% | Over 34,600 | |
In general, income tax is lower in the UK than many countries including Australia and New Zealand. Consumption taxes tend to even things up, unless of course you save it!
- Oz GST at 10%
- NZ GST at 12.5%
- SA VAT at 14%
... compared to 17.5% VAT in the UK.
Also find out about PAYE and managed companies, What you need to do when you arrive: Your NI Number and visit the official websites at www.inlandrevenue.gov.uk and www.dwp.gov.uk.
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