A taxpayer is a person or a business who is supposed to pay taxes to the government. There are lots of different types of taxpayer. Generally, you should know whether you are or not. If you’re unsure whether you qualify as a UK taxpayer, have a look at the list below and, if you answer yes to these questions, you are indeed a UK taxpayer!
Sometimes you can be a taxpayer even if you’re not a tax resident – it really depends on the Double Taxation Agreements between the UK and your home country. A Double Taxation Agreement (DTA) is an agreement between two countries. It prevents you from paying tax twice on the same income. If both countries have a Double Taxation Agreement, you don’t pay additional tax on the same income, but you may still have to file a tax return in both countries. Some examples of jobs roles that may need to be aware of Double Taxation Agreement laws include cruise ship workers, freelance consultants who work abroad as part of their role, or diplomatic or embassy workers.
In the UK, there are three main ways to pay tax:
There are also one-off taxes that you may need to pay if the circumstances arise. These include Stamp Duty for the purchase of a property, or Inheritance Tax if you receive part of an estate in someone’s will.
Nope! If you earn less than £100,000 per annum and pay tax via PAYE, you are already sorted and your income tax is being taken automatically from your wages before they even reach you.
Of course! We advise that you start a comprehensive spreadsheet to keep track of your taxable income and relevant expenses throughout the year in order to make your tax return more straightforward. This can be done on an Excel spreadsheet or Google sheet to keep things simple! Contact our team for more advice today!