Anonymous asked in TravelUnited KingdomOther - United Kingdom · 1 month ago

What is the UK tax system like?

First of all, where can I download a copy of the UK tax return?  As a US CPA, I'm curious to see what a UK return looks like.  I found the website but not sure where to download the form:

Second of all, do you guys file your taxes or do your employers file your taxes for you?

Third, is the UK tax system based off of the American tax system (progressive tax where the poor also benefit) or is it based off of a monarchy system where the King and Queen collect the nation's tax and distribute it based on their will?

11 Answers

  • 1 month ago

    Tax Competitiveness Index 2020: Estonia has the world's best tax system – no corporate income tax, no capital tax, no property transfer taxes.

  • Ludwig
    Lv 7
    1 month ago

    Most people use the 'PAYE' system, whereby tax and national insurance is automatically deducted from your wages.  The exception is the 'Council Tax' which pays for garbage disposal, the libraries, holes in the pavement etc.  You get a separate bill for that.   The self-employed fill in a tax form.  Try the HMRC website.

  • Anonymous
    1 month ago

    In the UK most people have tax deducted at source - ACCURATELY.

    In my 10 years in the workforce there, before I came to the US, I never filed a return.

  • 1 month ago

    Search 'www'UKGov'. 

    When on that page look for money and tax. 

    As a UK citizen, I use it to do my self assessment tax return . When completed it tells me how much it owes me or I owe it. 

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  • Zara
    Lv 5
    1 month ago

    Why on earth would the UK base anything on the USAs system. Don’t they teach anything over there?

  • F
    Lv 6
    1 month ago

    If you have a normal job and no perks , all your tax is taken off before you get paid. Pay as you earn,PAYE. Only if you have other income do you have to do a tax return. 

    The richer you are , the better tax accountant you can hire, and at some point, your accountant will be better than the governments and then you can get away with anything. 

    Basically they haven’t a clue apart from PAYE, but rely in ordinary people being too scared of breaking  the law , they own up to everything. The rich especially foreigners living here have no such scruples.

  • 1 month ago

    The UK tax system is rather complicated, the taxpayers alliance were complaining about the size of the tax rule book about 8-12yrs ago just either side of the Conservatives taking power, and it's got even worse since then.... it was about 3000 to 7500 pages long when they first started complaining about it, and tax experts were saying it should be junked and restarted from scratch.... and I think last update I saw a couple of months ago from the TPA said it'd now gotten over 17,000 pages long (up from about 11,000 pages 5yrs ago)

    If you work for someone else, then the Income Tax + National Insurance is handled by the employer via PAYE (Pay As You Earn).

    If you work for yourself, then depending on circumstances there are 2 different form options to deal with:

    Long version = SA100

    Short form = SA200

    If you're a business, specifically if earning above a certain amount you can also register for VAT (Value Added Tax, a form of sales tax) and claim back certain business expenses (or end up having to pay a bit extra) with a quarterly return.

  • pmt853
    Lv 7
    1 month ago


    Usually only the self-employed with turnover of £1,000 or more pa file a tax return. For most of us our employers do all the form filling and deducting tax for us. We have a progressive tax system, we don't have a king.

  • 1 month ago

    If you're an employee, your employer pays the taxes from your income before it gets to you. 

  • Tavy
    Lv 7
    1 month ago

    In the UK if we are working for a Company they deduct our taxes and pay HMRC.

    If we are self employed we fill out a form and pay the taxes to HMRC.

    We do NOT have a King and Queen, we have a Queen and she has nothing to do with our taxes, she pays her own taxes on her income the same as everyone else.

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