The brief introduction is as follows:
individual income tax
Taxpayer: British residents and non-British residents. The concept of British residents is an Englishman who lives permanently in Britain; /kloc-who has lived in the UK for more than 1 83 days in a year; 10 lived for more than 3 months every year.
Scope of taxation: income earned by British residents around the world; Income earned by non-British residents in the UK.
Tax rate. Three grades of excessive progressive tax rates are implemented, with tax rates of 20%, 23% and 40% respectively. Tax exemption for annual income below 5,035 (2006-2007).
Every employee has a PAYE number, which will remind the employer of the tax to be deducted.
Individual income tax rates of different grades start from 5035.
value-added tax
British VAT taxpayers are companies, partnerships and individuals engaged in commercial activities, with an annual taxable turnover of 48,000 pounds. Non-residents who engage in the production and sale of taxable goods in Britain through branches or other means are also taxpayers of VAT. Operators specializing in duty-free goods are not taxpayers of value-added tax. The UK VAT rate is only 0 and 17.5%. 17.5% is the basic tax rate, which is applicable to most commodities. For export commodities, most foods, books and newspapers, household fuel, children's clothes and public transportation are subject to zero tax rate. Financial services such as land, insurance, medical care and banking are exempt from value-added tax. A preferential tax rate of 8% is applied to domestic fuel and energy, but the tax rate is lowered from 1 September 19971to 5%.
consumption tax
Britain imposes consumption tax on tobacco products, alcoholic beverages, gambling and fuel. Consumption tax is levied on fuel mainly because the use of fuel will cause environmental pollution, which is a compensation for non-renewable resources. The main purpose of taxing alcohol, tobacco and gambling is to improve national health and moral standards.
Social insurance tax (national insurance)
Britain is one of the countries that established social security system earlier in the world, and its insurance tax consists of four parts:
1. Insurance tax paid by employees
Those who earn less than 62 pounds a month can be exempted; The monthly income of 62-2 10 is levied at 10%, and the part exceeding 2 10 is exempted from insurance tax. However, if employees enjoy other benefits of the company, they are regarded as taxable income and pay insurance tax.
2. Insurance tax paid by the employer according to the employee's salary
The monthly income of 62- 1 10 is 3%; The tax rate of 5% is applicable to11-155; The tax rate of 7% is applicable to156-210; The tax rate of 10% is applicable to those above 2 10.
3. For self-employed people
The weekly basic insurance premium is 7. 15, in addition to income-related insurance tax. In this way, you are entitled to all social benefits except unemployment allowance.
Insurance tax is generally not levied on people who have no jobs.
However, if I want, I can also pay the basic insurance premium of 7.05 pounds a week to get the basic pension and widow's pension.
Parliamentary tax (parliamentary tax)
Parliamentary tax is the only local tax in Britain at present. It is a tax levied on houses according to the value of real estate. Taxpayers are 18-year-old house owners or lessees (including lessees of houses owned by local governments), including permanent property owners, lessees, legal residents, certified residents and residential owners. If a house is owned by more than one person or people who live in it, these people will jointly bear the tax obligation.
The value of residential real estate is assessed by the real estate appraisal department of the Internal Revenue Service and revalued once every five years. According to the value of the property, it is divided into 8 grades A-H8, and different taxes are levied. The highest tax rate is 25 times of the lowest tax rate.
The taxpayer shall declare the collection and payment to the tax authorities and provide relevant housing information. After examination, the tax authorities shall notify taxpayers to pay taxes. The tax can be paid in installments within 10 month, or in the way required by the local government. If taxpayers fail to declare or provide false information on time, they will be fined. There are some relief clauses, such as discounts, disability relief and concessions.
The first category, discount.
There are three kinds of discounts:
First, only one house, and only one occupant is an adult, can enjoy the tax preferential treatment of house value 1/4;
Second, those who own more than two houses and only one occupant is an adult can enjoy the tax preference of 1/2 of the house value;
Third, students, doctors, apprentices, trained young people and those who are exempt from community tax are exempted from house property tax, and an adult living with a doctor is stipulated to enjoy the tax preference of 1/4 of the house value.
The local government will ignore some adult households when calculating the number of adult residents in their places of residence. For example, students, students' spouses, what's on the passport? Without recourse to public funds? Family members and nursing students with working conditions are prohibited. If two or more residents cannot be ignored, the government will send a complete tax bill. If 1 person is included, the tax bill will be 15% off (7.5%). Like an international student and his? Without recourse to public funds? The spouse who meets the admission requirements lives with another adult who is not a student and works full-time. The local government will ignore students and their spouses and only count one adult. There is a 25% discount on the bill. If the residents are not all students, but both residents are ignored, and the number of households calculated by the government is zero, the bill will be 50% off.
The second category is disability relief.
For some disabled people who need to be reduced or exempted for special reasons, the tax level of their housing value can be reduced when collecting taxes, and appropriate tax reduction care can be given.
The third category, concessions.
The maximum preferential range of property tax can reach 100%. For taxpayers with no income support or low income, how much preferential treatment they get depends on their income, savings and personal situation. Taxpayers who meet the preferential conditions shall apply to the local government before taxation. Taxpayers who have already received housing benefits and community tax incentives do not need to apply again.
For details, please see the British government website.
Highway tax
All car owners must pay road tax. Motor vehicle owners are taxpayers of motor vehicles, including individuals, companies and social organizations.
Drivers must hold a motor vehicle driving license issued by the British government. In principle, the license plate is renewed once a year, and the owner of the motor vehicle pays the road tax at the same time when receiving the license plate.
Tax rate Different fixed taxes are levied according to the types and scope of use of motor vehicles. Ambulances and motor tricycles for ambulances are duty-free.
Pay taxes to the big post office, and you will get a tax plate after paying taxes. You must stick it on the windshield of your car.