🇬🇧 United Kingdom · Tax System
Corporate tax, VAT/GST, personal income tax, capital gains, and filing obligations.
Quick answer
The UK taxes income (Income Tax and National Insurance) and levies VAT on most goods and services, administered by HMRC. UK tax residents are generally taxed on worldwide income; the tax year runs 6 April to 5 April.
Taxes are administered by HM Revenue & Customs (HMRC). Companies pay Corporation Tax, and VAT applies to most goods and services.
- The main Corporation Tax rate is 25%, with a 19% small-profits rate for lower profits.
- The standard VAT rate is 20%, with reduced (5%) and zero rates for certain supplies.
- Filing and payment are handled online through HMRC.
Step-by-step
- 1
Determine your residence and domicile
Work out your UK tax residence using the Statutory Residence Test; residents are generally taxed on worldwide income, non-residents on UK income.
- 2
Register with HMRC
Register for a National Insurance number and, if needed, for Self Assessment to get a Unique Taxpayer Reference (UTR).
- 3
Understand the taxes that apply
Identify Income Tax and National Insurance (usually via PAYE for employees), plus VAT, Capital Gains Tax and, for companies, Corporation Tax.
- 4
Operate PAYE or Self Assessment
Employees are taxed at source through PAYE; the self-employed and others file a Self Assessment return.
- 5
File and meet deadlines
File the Self Assessment return by 31 January online (for the previous tax year ending 5 April) and pay by the deadline.
- 6
Keep records and get advice
Keep records for the required period and seek advice for residence or non-dom questions.
Checklist
- Residence/domicile determined (Statutory Residence Test)
- National Insurance number
- Self Assessment registration + UTR (if needed)
- Applicable taxes identified (Income Tax, NIC, VAT, CGT, Corporation Tax)
- PAYE or Self Assessment operated
- Return filed by 31 January + payment
- Records kept for the required period
- Advice for residence/non-dom cases
Official authorities
- HM Revenue & Customs (HMRC)
Tax authority — Corporation Tax, VAT, filing.
Frequently asked questions
When is the UK tax year?
It runs from 6 April to 5 April the following year.
What is National Insurance?
A contribution paid by workers and employers that funds state benefits and pensions, separate from Income Tax.
How is UK residence determined?
The Statutory Residence Test decides UK tax residence based on days present and ties; residents are generally taxed on worldwide income.
Official-information aggregation, not legal advice. Always verify on the authority's own site.
Government portals
- UK Government (GOV.UK) — UK's unified government services portal — visas, taxes, driving licences, benefits and more
- UK Visas and Immigration — UK visa applications, Biometric Residence Permits (BRP), and work authorization
- HM Revenue & Customs — Self Assessment tax returns, National Insurance, VAT registration and payment