Knowing about one's own country Tax system is one of the most important thing. This might help you understant the importance of paying taxes or even ways by which you can save Taxes. You know that government offers many tax bnefits and money grants for its citizen. Government offers different grants for pregnant mother, already a mother of new born, family grant (to raise children), unemplyed grant etc.
HM Revenue and Customs collect different taxes so that it can offer public services to its people. The amount of tax collected varies each year (government decides this) but the major tax heads remain almost same.
This guide should help you understant the various taxes that UK government collects from its citizens.
1. Income Tax (on your earnings, pensions, savings, investments and other benefits) - You pay income tax on the salary (if you are employed), on the profit you earn if you run a business (self employed), pensions you receive, dividends from shares and on many more things. Basically, if you are earning money (getting money from any source) then yo may have to pay taxes on this money earned. You are not sure whether you have to pay income tax on your money earned then better surf more or consult your Taxman (charted accountant or finance consultant).
2. Taxes on Transaction (buying, selling or giving away of things) - These include Capital gains tax, stamp duty and inheritance tax.
3. Tax on services and goods - Value Added Tax (VAT) on many everyday purchases, Fuel Duty on petrol diesel and LPG, Excise Duty on alcohol and tobacco , General Betting Duty.
4. Council Tax- to help pay for local services like policing and refuse collection.
This include the major taxes imposed but not all the taxes. You need to consult your government tax website for more details on various taxes.
HM Revenue and Customs collect different taxes so that it can offer public services to its people. The amount of tax collected varies each year (government decides this) but the major tax heads remain almost same.
This guide should help you understant the various taxes that UK government collects from its citizens.
1. Income Tax (on your earnings, pensions, savings, investments and other benefits) - You pay income tax on the salary (if you are employed), on the profit you earn if you run a business (self employed), pensions you receive, dividends from shares and on many more things. Basically, if you are earning money (getting money from any source) then yo may have to pay taxes on this money earned. You are not sure whether you have to pay income tax on your money earned then better surf more or consult your Taxman (charted accountant or finance consultant).
2. Taxes on Transaction (buying, selling or giving away of things) - These include Capital gains tax, stamp duty and inheritance tax.
3. Tax on services and goods - Value Added Tax (VAT) on many everyday purchases, Fuel Duty on petrol diesel and LPG, Excise Duty on alcohol and tobacco , General Betting Duty.
4. Council Tax- to help pay for local services like policing and refuse collection.
This include the major taxes imposed but not all the taxes. You need to consult your government tax website for more details on various taxes.
June 3, 2015 at 1:12 AM
My friend in UK was having a hard time on processing her papers including her taxes. I know this stunning information will guarantee help her. Thank you for sharing this one.