If you feel as though you have paid more tax than you should have, then here are some tips that will help you to take advantage of the various schemes and benefits that are out there.
Double Tax Treaty
Right now, it is impossible to say what the long-term tax implications of Brexit are going to be. This is especially the case if you look under the current rules. If you are moving to the UK from another EU country, then you will be able to get protection from paying the tax twice. This comes from the double treaty tax agreement that has been made between the UK and other EU countries.
Double Taxation
This is going to remain as it is not dependent on having an EU membership. Countries such as China, Canada, Japan, the US and India have a tax treaty with the UK. This means that the residents can avoid paying more tax than they should be. There are also rules for non-UK residents too. The rules regarding tax can be very complicated indeed, and if you want to help yourself here then you need to try and seek expert advice as much as possible. If you are not quite sure which taxes you are going to be liable for or even how much you need to pay, then it’s worth doing your research because if you happen to make the wrong decision then you might lose out.
What is a UK resident?
If you are a UK resident for tax purposes, then you have to spend 183 days in the UK every tax year. If your home is in the UK, then you must have owned or rented it for a minimum of 91 days. If you are UK resident and you move to the UK then you will pay UK tax on your income, regardless of whether or not you choose to receive it abroad or whether it’s in the UK. Expat tax planning might be complicated but if you take your time and get expert advice then you shouldn’t have a problem.
UK Personal Allowance
If you are a UK resident then you will be entitled to a personal allowance. This is essentially the amount that you can earn every year without paying tax. If you earn above this amount then you will be taxed at the basic rate. This 20% rate is up to £50,000. You then go up to the higher rate of £50,001 and £150,000, which is charged at 40%. It is possible that you will end up paying the tax twice on income or even gains unless your country has a double-tax agreement in the UK.
Tax Rules
If you are classed as being a non-resident then you will pay tax on the income that you get from the UK but not on any foreign income. It’s important to keep this in mind if you want to get the best result out of your income overall.
