The UK income tax year runs from 6th April to the following 5th April. All income received in this period must be reported to HMRC by filing of a Self Assessment Tax Return by the 3st January following the end of the tax year. For example, all income for the year 2018/2019 (6th April 2018 to 5th April 2019) must be reported to HMRC by 31st January 2020. You have 10 months to prepare and submit a tax return.
- Receive tax free annual allowance
Non UK Residents
- UK Ex-pats/EU Residents (this may change after Brexit) also receive tax free annual allowance
- Others, depend on Double Taxation Treaty, Country by Country
- Non UK Companies currently do not report full financial statements. Income from Land and Property are taxed at the same rate as individuals.
- Companies do not pay income tax, they pay corporation tax.
- This is a much simpler regime – 20% of net profits.
- The same rules for expenses apply to individuals and to companies.
- Companies do not receive a tax free allowance therefore tax is paid on the first £ of net profits.