[milhous]

Can't seem to find a good website that lays it all out in an easy to understand manner.

So far, I know there's the VAT, income tax, the national insurance tax, and the council tax. Are there any other major taxes that I missed?

Also, what are the tax rates, I believe the rates are on a sliding scale, but if you know how it all works, could you give some examples on what the typical tax deductions would be (Person X makes 20k, 40k, 60k+, etc.).

I've thought about getting a masters degree over there and possibly working there as well, so I'm just curious as to what would be "left over" after all's said and done. Thanks.

[olePigeon]

Originally posted by milhous:
Can't seem to find a good website that lays it all out in an easy to understand manner.

So far, I know there's the VAT, income tax, the national insurance tax, and the council tax. Are there any other major taxes that I missed?

Also, what are the tax rates, I believe the rates are on a sliding scale, but if you know how it all works, could you give some examples on what the typical tax deductions would be (Person X makes 20k, 40k, 60k+, etc.).

I've thought about getting a masters degree over there and possibly working there as well, so I'm just curious as to what would be "left over" after all's said and done. Thanks.

A great place to ask would be someplace like H&R Block. They actually might have a pamphlet or something on it.

[cpt kangarooski]

olePigeon--

A great place to ask would be someplace like H&R Block. They actually might have a pamphlet or something on it.

But this is the British tax system. So it'd be H&R Blouck.

[Gee4orce]

Check out the Inland Revenue web site for the full low-down, although I think VAT is actually part of the Customs and Excise...erm, so that won't help.

Basically, apart from the first £2K or so you earn in a year, your earning are taxed at (I think) 22%, upto about £25K where the rate jumps up to 40%. Saving are also taxed, unless they are part of an ISA which is a tax free saving allowance of £7K per year.

National Insurance is fixed at a few %, and is automatically deducted from your income by your employer, who must also contribute a similar amount. This goes towards providing you with a state pension when you retire. In theory.

Everything apart from food and a few other essentials is has a 17.5% Value Added Tax applied to the cost (this is always included in the sticker price, the exception being if the items are being sold to other businesses, because in business to business transactions the VAT can be claimed back. VAT is a point of sale tax)

Council Tax is payable directly to the local area authority and covers local services such as emergency services, street lighting, street cleaning. In practice it also pays for local road maintenance, even though there is a separate tax - Road Fund Licence - which you must buy and display in any vehicle you drive on the road.

The flip side of this is that if you have no income you can claim benefit that will supposedly just about pay for you to survive. And if you are ill you get free critical and long term medical treatment. Unless it's a dentist, in which case you're better off going private. Or an optician.

As a foreign national I don't know how which bits you'd have to pay. My guess is all of it, and then possibly claim some back when you leave...

Simple really

[Thorin]

Just to give you a nudge in the right direction. This is based on my understanding of the UK tax system, and may not be 100% accurate!

Income tax and national insurance are paid on your wages. These are normally deducted by your employer. For income tax you pay no tax at all on the first £4,745, then you pay 10% on the next £2,020 you earn, then you pay 22% for everything you earn over that up to £31,400. All this information is for the 2004/05 tax year, and taken from:
http://www.inlandrevenue.gov.uk/rates/it.htm

There's some more information about National Insurance here:
http://www.inlandrevenue.gov.uk/nic/

Council tax is paid to your local council, and varies depending on how much the house you're living in is worth, and also varies by region depending on what your local council sets the tax at. If you're a full time student, then you're exempt from paying this tax. The problem is that if you're a full time student living in a house with people who aren't full time student's, then the house is not exempt, and you're just as liable as anyone else that you live with.
More information about Council tax:
http://www.voa.gov.uk/council_tax/

VAT (Value Added Tax) is paid at 17.5% on products that you purchase (some things are exempt like children's clothes, or groceries, but not eating in a resteraunt). Whenever you look at prices in the UK, VAT is included, so what you see is what you pay.
More information about VAT:
http://www.hmce.gov.uk/channelsPorta...yType=document

[Diggory Laycock]

Capital Gains Tax, Inheritance Tax, Stamp Duty, Fuel Tax.

There are lots of taxes here - and they get more complicated every year.

[DeathToWindows]

Ouch. I've been to the UK several times (and love it, BTW), but the one thing that always gets me is the VAT... I am too much of a geek to happily pay an extra 17.5% on all of my toys....

But it doesn't keep me from visiting!

[bygimis]

Hidden Taxes :

Road Tax (if you want a car) - about £165 per car
TV License (per household) - about £130 I think (I don't have one)
Council Tax (depends where you live) - £600 is what I pay

All the above are per year. Plus there is a lot of tax on Petrol and cigs. An booze.

[Sherwin]

Originally posted by milhous:
I've thought about getting a masters degree over there and possibly working there as well

As for the degree - I wouldn't bother. They're currently handing them out to anyone who can tie their shoelaces, so one from your own country would be worth much, much more.

If that didn't put you off, try this: http://www.bbc.co.uk/radio1/onelife/...tml?tax#topics

So you pay no tax on the first £4,615 of your annual salary, 10% on the next £1,960, and a further 22% on anything between £1,961 and £30,500.

[Amorya]

Originally posted by DeathToWindows:
Ouch. I've been to the UK several times (and love it, BTW), but the one thing that always gets me is the VAT... I am too much of a geek to happily pay an extra 17.5% on all of my toys....

But it doesn't keep me from visiting!

Can't you claim it back at the airport when you leave? I thought visitors to the UK could do that, and then pay import tax instead, which might be cheaper.

VAT's annoying, but as was mentioned it's included in the price shown (by law - they have to specifically say "£5 plus VAT" if it's not.) There's no nasty surprises when you get to the till!

Amorya

[Nivag]

Originally posted by bygimis:
Hidden Taxes :

Road Tax (if you want a car) - about £165 per car
TV License (per household) - about £130 I think (I don't have one)
Council Tax (depends where you live) - £600 is what I pay

All the above are per year. Plus there is a lot of tax on Petrol and cigs. An booze.

you missed one::

Stupid Tax - the Lotto

[dreilly1]

Originally posted by Amorya:
Can't you claim it back at the airport when you leave? I thought visitors to the UK could do that, and then pay import tax instead, which might be cheaper.

VAT's annoying, but as was mentioned it's included in the price shown (by law - they have to specifically say "£5 plus VAT" if it's not.) There's no nasty surprises when you get to the till!

Amorya

Not sure about the UK, but when I went to Ireland, I filled out forms to get the VAT refunded on everything that I brought back with me. I think that places where I bought big-ticket items actually gave me the VAT form to fill out. I just got the forms stamped on the return flight (not sure whether the stamp was in Ireland or in the US), and then a few weeks later the charges appeared back on my credit card.

I couldn't get a refund on any services or anything that I didn't take back to the US with me, and I'm sure that the rules are different if you're a student or if your're employed and you're staying for any length of time.

[Simon X]

Originally posted by Amorya:
Can't you claim it back at the airport when you leave? I thought visitors to the UK could do that, and then pay import tax instead, which might be cheaper.

VAT's annoying, but as was mentioned it's included in the price shown (by law - they have to specifically say "£5 plus VAT" if it's not.) There's no nasty surprises when you get to the till!

Amorya

That's right. you fill in the form when you make your purchase and claim it back at the airport on your way out.

There's also rip-off Britain's stealth tax. Get a good accountant and don't pay more than you should. Not that I'm at that stage yet where it makes a blind bit of difference.

"The government sure do take a bite, don't they"