UK Taxes

Property taxes are called Council Tax, and is very similar. It is payable in monthly installments if you like, and easiest by direct debit. It is calculated by property values and number of occupants. You can get an idea what your cost will be by going to Up My Street where you can find out many many things about the neighborhoods of your choice.

Income Tax is very similar, taken from your pay, but is more of a flat tax. No forms to fill out every year unless you are self employed. That said, there’s no looking forward to a refund either. The regulations on whether or not you pay taxes if you are not permanently staying in the UK is very complicated, their leaflets are available online. In the UK, you can obtain relief from double taxation if your overseas income is subject to tax both in the UK and in another country. The question is who to pay which income taxes to.

Apparently one must always file a US return if they have an income abroad, regardless of whether they owe, and there is a threshold where you do not owe taxes if you made less than $70,000 abroad. Get the advice of a specialized accountant to be certain of your US Tax liablities.

Sales taxes are nearly invisible, they are already calculated into costs of goods, so the price you see is the price you pay at the till or checkout. It is called VAT or Value Added Tax, and is 17.5%. It is applied to all goods/services except children’s clothes and some food products such as milk. For more information check HM Revenue and Customs.

Other taxes on such things as home or vehicle purchases, and utilities are also collected as well. Some people may also be subject to inheritance, capital gains, and other such taxes. Petrol is highly taxed as well as cigarettes.

Source: OECD, 2005 data

For further information please try our Tax Forum

• Re: IRS publications

  Usually they're referring to the instructions for that particular form.
• IRS publications

  I'm having a go at my taxes.  But many lines say  "see page 35" or "see page 14" and so forth.  How do I know which publication they are referring to?   
• Re: US tax filing question

  On Turbotax there is a place to add wages not reported on W2. I've not had a problem.
• Re: Getting Tax help in the UK

  Yes, I too am needing to find someone over here in the UK to assist with filing 2009 and possible amendments to past returns.  Didn't realise how difficult it would be to find someone that knows both the UK and US side of things.   
• Re: US tax filing question

  Regarding Turbo Tax/ Taxcut, how do people enter their UK wages in these programs?  I'm trying to enter them on the same screen you would enter your W2 wages.  The problem is that since my employer doesn't have an EIN, the program won't accept what I'v...