Accounting services and taxes

UK major taxes

1. The income tax for individuals is 45%.
2. The income tax for legal entities is 19%.
3. Capital gains are included into the taxable amount.
4. The VAT level in England (London) is 20%. There are 3 generally types of rates – standard, reduced and zero. Some
   goods and services are exempt from taxation.
5. The state fee for reviewing the annual report is £40, stamp duty remains at 0.5%.

Taxes for legal entities

There are two main forms of legal entities most common in the UK – LTD and LLP. They do not differ from each other profoundly, except for the annual audit required for LLP.

1. All LLP partners need to be registered with state tax and customs authorities.
2. Individual partners are liable to pay the income tax, as well as social security tax. They do not need to register with the UK state authorities.
3. Legal partners must register no later than October 5 of the year following the year of LLP registration.
4. The SA 400 form is required with income tax charges in the UK. The form is used for both calculation and payment.
5. If the turnover exceeds £85,000 in cash, the taxpayer needs to register for VAT.

Taxes for an individual

1. Income tax. UK residents are liable to pay duties on global income. Non-residents are subjected to specified terms and conditions that determine the tax rate.
2. Tax on dividends. In most cases dividend allowance is provided to cover the payment.
3. Capital Gains Tax. The rate for entrepreneurs is 10%, for individuals with low income per year it is 18%, for all other categories of residents it is 28%.

UK INCOME TAX FOR COMPANIES

All forms of business entity are liable to this particular tax, including structures that do not possess the legal status. The list of companies obliged to pay taxes in London and other UK cities:

1. LLC that are of UK residents.
2. Non-resident entities based in the country.
3. Societies, clubs, cooperatives and other associations.
4. Individuals representing a group of businessmen, but not registered as a partnership.
5. All branches and subsidiaries of charitable foundations.

The standard income rate is 19%. Small businesses might be subject to reduced tax rates.

UK TAX REFUND

The tax refund is available for tourists and locals that have purchased goods from the Tax Free retailers. A refund procedure in England applies only to VAT, up to 13% are available to be returned in cash or on card.

OTHER TAXES IN ENGLAND

1. Inheritance tax. Spouses are exempted from the payment when transferring the ownership of property. The tax is applied for valuable gifts and accommodation in case of the inter vivos transfer. The property tax rate depends on the value of the asset and ranges from 20 to 40%.
2. Real estate tax. The rate is standard and it is applied to the landlords of a residential unit or rented commercial property.
3. Stamp duty. The sales of shares are subjected to 0.5% tax rate, residential property transactions are charged be 0-7% rate, commercial property transactions goes for 0-4%, property acquisition worth more than £2 million is liable to 15% tax rate.

More details about all types of taxes, the payment process, the length of the tax year and other details are available by
one-to-one consultation.

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