What income tax is payable in the UK?

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.

Summary

UK Residents

• 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.