Whether employment income is assessable in the UK is determined by reference to the residence and domicile status of the employee at the time it’s earned. When income is assessable depends on the tax year in which it’s paid or in some cases when remitted to the UK, regardless of residence status. Special rules apply for employment income paid before UK employment has commenced and on or after UK employment has ceased.

Income tax is payable on taxable income at rates which vary according to the amount of income and its nature. Individuals are generally entitled to a tax-free amount or allowance, but care needs to be taken in situations where the relevant allowance could be reduced or lost – for example a claim by a non–domiciled individual for the remittance basis, anyone with an income of at least £100,000 or someone born before 6 April 1948 with an income of at least £27,000.

Value Added Tax (VAT) is a tax on the final consumption of certain goods and services in the home market but is collected at every stage of production and distribution. Most business-related goods and services will therefore be subject to VAT. There are several UK VAT rates, the standard rate being 20%.