Most people assume that because their employer runs payroll, their employment income tax is handled correctly. In our experience, that assumption is wrong more often than people realise. Most employed people assume their tax is sorted. Payroll handles it every month. HMRC reconciles everything at the year end. There is nothing to worry about. That […]
Got a chargeable event certificate from your insurer or bond provider? Before you assume it works like capital gains tax, watch this first. You receive a chargeable event certificate from your insurance company or bond provider. You are not sure whether it is a capital gains tax matter or an income tax matter. And you […]
Many non-residents assume that after enough time outside the UK, capital gains tax on UK property disappears. It does not. One of the questions we receive regularly from non-residents with UK property is whether capital gains tax eventually stops applying after enough years outside the UK (Non Resident Capital Gains Tax also known as NRCGT). […]
The UK Statutory Residence Test determines whether you are taxable in the UK on your worldwide income or only on UK sources. Get it wrong and the consequences can be significant. One client spent three days too many in the UK and faced a £20,000 tax bill. Three days too many in the UK. A […]
Paying tax in two countries on the same income is not inevitable. Foreign tax credits exist to prevent exactly that. But they do not work in the way most people assume. You have income from overseas. You have paid tax on it in the country where it arose. Now HMRC wants to tax the same […]
When someone tells you that you need to do an SA109, what they actually mean is that you need to do a full UK tax return. UK Tax Return Explained: SA100, SA109 and What the Supplementary Pages Mean Someone has told you that you need to do an SA109. Or an SA105. Or one of […]
If you receive equity awards from your employer; RSUs, share options, or anything in between, understanding how they are taxed in the UK is not optional. Get it wrong and you could be overpaying tax, underpaying tax, or find yourself in a very difficult conversation with HMRC. Your employer granted you equity awards a few […]
Most people assume that if they have no income tax liability, their entire basic rate band is available for capital gains tax at 18%. That is not always correct. No UK income tax liability. Non-resident status. Many people in this position assume their entire basic rate band is available for capital gains at 18%. That […]
Thinking of leaving the UK to work overseas? The Full-Time Work Overseas test is one of the most powerful, and misunderstood, parts of the UK’s Statutory Residence Test. Working overseas full time sounds like a clear route to UK tax non-residency. Many people assume that leaving the country and working abroad will be enough on […]
We regularly see high earners accidentally triggering annual allowance charges, simply because they didn’t realise what counts, and recent proposed changes to salary sacrifice could significantly reduce employer contributions in the coming years. UK Pensions: Are You Really Getting the Tax Benefit? Pensions are often seen as one of the most tax-efficient ways to save […]
