thetaxdon[at]yahoo.com (DonBa) wrote:

- quote -

The UK has a system of taxation with many components, of
which personal income tax and National Insurance are the
ones that hit just about everybody. Because the top tax
bracket kicks in at a fairly modest income level, income
taxes on the middle class can be much higher than in the US.

Persons with uncomplicated tax situations don't need to file
Self Assessment returns; their tax is paid through a complex
withholding system called PAYE. If refunds are in order,
they are made as soon as they're calculated, through the
employer. Anybody who's self-employed or has significant
investment income or another reason why PAYE doesn't
calculate the right amount of taxes files a Self Assessment
return; you can do this online now.

Inland Revenue have nicely laid-out tables at
http://www.inlandrevenue.gov.uk/rates/it.htm; the whole
Inland Revenue site is reasonably informative and easy
to navigate.

The top income tax rate is 40%, and it begins at taxable
income of 31,400 pounds (2004-05). There are various
personal exemptions.

National Insurance has a complex set of rates that has four
different classes plus certain reduced rates and rebates.
The employee share can be as high as 11% on income of 91 to
610 pounds/week; the employer share can be as high as 12.8%.

Capital gains tax, inheritance tax, savings and dividend
tax, and corporations tax have their own schedules. Most top
out at 40%; for dividends, it's 32.5%. The top bracket for
corporations is 30%, but it's not reached until 1,500,000
pounds.

There is a complex working tax credit and child tax credit,
which can add up to about 6,500 pounds for a family of four
where both parents work, higher in various circumstances.

There is stamp tax on real property sales and leases (1% to
4%) and on securities transfers (roughly 0.5%).

The UK also has business rates (business property tax),
which are set nationally and are very steep, running 40% or
more of the market rent for the property.

There is also local council tax (property tax), which is
adjusted from year to year according to the local budget; it
varies greatly from region to region and locality to
locality and can run into four figures for modest
properties.

--
Chris Green

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thetaxdon[at]yahoo.com (DonBa) wrote:

- quote -

Google is your friend:

<http://www.inlandrevenue.gov.uk/stat...00ap_a2d_2.htm
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2004-2005
AGI < L2020 10%
L2021-L31,400 22%
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Todays exchange rate L1.00 = $1.80, so think about double
these numbers in dollars.

The personal allowance is L4745.
Under L50,000 there are tax credits L0 - L6,910 for children.
Many other adjustments too.

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The rates for England, Wales, Scotland and Northern Ireland
may be found here:

http://www.adviceguide.org.uk/index/..._tax_rates.htm

- quote -

Reporting is done by individuals in much the same way we
report, by self assessment. You'll find much about taxes at
the Inland Revenue site:

http://www.inlandrevenue.gov.uk/

I can't help you with the "What else?"=

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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I have this curiosity about what the English pay in income
taxes. What are the rates for the low, median, and high
incomes; and what is the rate for their health care system.
Is it a self reporting system with withholding? I know they
have a VAT of 17.5% on purchases. What else?

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