I need tax advice
Dear Mr Bassie,
I intend to migrate to live and work in England and I would like to know what sort of taxes will I face as an individual.
Any advice would help.
Taxes that a person may have to pay if he/she goes to live in the United Kingdom, may include taxes on his/her income. Such income will include wages, benefits, pension and interest on savings.
A person will pay Income Tax on any income above his/her Personal Allowance. However, a person will not pay United Kingdom tax if that person only makes short business trips there, for example a training course or meeting.
The employer of an employed person, will deduct Income Tax from his/her wages. If a person works for his or her self then he/she will have to send a Self Assessment Tax Return and this will also need to be sent if a person has other income earned in the United Kingdom.
A person may also have to send in a tax return to the British authorities if he/she has made a profit when selling or ?disposing of? certain assets for example shares or a second home. A person may have to pay United Kingdom tax on foreign income, for example savings in an overseas bank account, rent on a property that is rented out or an overseas pension. This will depend on if that person is ?resident? in the United Kingdom. In addition, a person may have to pay tax on United Kingdom income or gains made while a person was abroad if he/she has lived in the United Kingdom in the past.
A person will usually have to pay National Insurance if he/she works in the United Kingdom. However, the method of payment will depend on whether he/she is employed or self-employed. When a person has arrived in the United Kingdom he/she will need to prove to his/her employer that he/she can work in the United Kingdom. The individual should also apply for a National Insurance number if he/she would like to work or claim benefits in the United Kingdom, including the State Pension.
A person should also be aware that he/she would not need to pay National Insurance or get a number if he/she either has a Portable Document A1, E101 or E102 from a country in the European Economic Area (EEA) or if that person has a certificate from a country which has a bilateral agreement on social security with the United Kingdom.
The countries with a bilateral agreement are Barbados, Bermuda, Bosnia and Herzegovina, Canada, Isle of Man, Israel, Jamaica, Japan, Jersey, Guernsey, Republic of Korea, Macedonia, Mauritius, Montenegro, Philippines, Serbia, Turkey and the United States of America.
A person will not have to pay National Insurance for the first 52 weeks if that person is from a non-EEA and non-bilateral agreement country or if he/she is sent by an employer in his/her home country to work in the United Kingdom temporarily.
Please be aware that you may be taxed twice on the same income or gains unless the country you?ve come from has a double-taxation agreement with the United Kingdom. However, if a person has paid too much United Kingdom tax, a person may claim tax relief or a tax refund. This may occur where a person has only been working in the United Kingdom for a short time and plan to leave thereafter. Also, a person may apply to claim back tax if he/she is a foreign national assigned to the United Kingdom and he/she thinks that he/she has paid too much tax.
n John S. Bassie is a barrister/attorney-at-law who practises law in Jamaica. He is a justice of the peace, a Supreme Court-appointed mediator, a fellow of the Chartered Institute of Arbitrators, a chartered arbitrator and a member of the Immigration Law Practitioners Association (U.K.). Email:firstname.lastname@example.org