HM Revenue and Customs collects tax to pay for public services. Each year the Chancellor's Budget sets out how much it'll cost to provide these services and how much tax is needed to pay for them. Key taxes that individuals may have to pay include: Income Tax, Capital Gains Tax, Inheritance Tax, Stamp Duty, Value Added Tax and certain other duties.
You pay Income Tax on:
As well as paying Income Tax on your wages and on income from self-employment, you also have to pay National Insurance contributions (NICs).If you're an employee, your employer operates PAYE (Pay As You Earn) and deducts tax and NICs from your wages. If you're self-employed you'll be responsible for paying your own tax and NICs and filling in your Self Assessment tax return.
You pay Income Tax on most of the income you get from your savings and investments. This includes:
Bank and building society interest and dividends are usually 'taxed at source' (meaning tax is deducted before they're paid to you).
You may have to pay tax when you buy or sell things or give them away, for example:
For more information on these taxes and the different ways you pay them follow the links below:
When you buy goods and services, there are various taxes you may have to pay, like:
Taxes like VAT and the duties on fuel, alcohol, tobacco and betting are charged at flat rates and are added to the price you pay for the goods or services.
As well as paying tax to pay for public services you may have to pay Rates to help pay for local services like refuse collection. The amount of Rates you pay depends on the 'capital valuation' of your home and the tax rate set by your local council.
For more information on Rates and how you pay it read follow the link below:
Money, tax and benefits
