Changes for UK Employers After Brexit

One of the changes that the British government plans is to charge businesses £1,000 a year (approximately €1150) for every European Union worker they have in their company after Brexit.

This measure has caused a strong reaction in British companies as this penalty for hiring European workers would have a triple purpose: to reduce the number of immigrants to the UK, preferential treatment to British workers and to finance the training course for three million young people by 2020.

The measure is still under study but they say it is among the options.

The London chamber of commerce issued a statement stating that it is against this measure and saying that EU workers represent a significant 15% of the workforce and that such immigration toll would be an extra penalty for companies that could be seen affected.

Rather the government should study why there are so many foreign workers in the country. A tax like that would only hurt job opportunities at this crucial time full of expectations.

In the UK, a test is applied to determine whether a person is a taxpayer or non-resident for UK tax. Such a test consists of a combination of physical presence and linking factors. When you are self employed you are required to file income and capital gains tax returns on your income. This applies to everyone working in the UK.

Non-residents are now taxed on their income and capital gains originated in the United Kingdom and generated by residential property in the UK, or London. This can be done on a non resident tax return.

As for deductions and tax credits we have that a tax relief can be requested by personal subsidies, work or business expenses and also by pensions, maintenance payments, donations. In the case of expatriates, benefits are included in that taxable income, but they can file their exemptions.

One thing’s for sure… even after Brexit you’ll still need to pay tax….

British people and European workers in the UK pay taxes like PAYE (Pay as you earn). The employer pays the discounted taxes directly from the payroll and the employer assigns the tax code to calculate the taxes that have to be paid. If taxes are paid in error, or if there is a mistake in your tax code you can be sure that your money will be returned, although it can take a long time for HMRC to re-calculate this for you.

If at the end of the fiscal year you think you are entitled to a tax refund you must fill out a tax rebate form.
The payment of taxes is complex in almost all countries, and as expected UK tax does not escape from complexities.

Let’s Talk Tax

Questions? Need tax services and personal advice? For a free consultation call us on 0330 321 1136, or visit today.

We’re an international income tax return service who offer personal consulting and give online support throughout the whole year.

Leave a Reply