The TAX levied by the TAXMAN to the TAXPAYER is so TAXING, that the TAXPAYER feels like constantly sitting in a TAXI where the TAXIMETER continuously ticks and never stops..
Every one of us here has had to pay one or more forms of tax to the government. Some of us pay knowing exactly what they pay, some pay knowing reasonably what they pay and some pay knowing little what they pay.
The objective of the below is not to make anyone a tax expert, but to just give a broad outline of the tax system in the UK.
Taxation in the United Kingdom is broadly divided into two types.
One that is paid to the Central Government which is otherwise referred to as Inland Revenue (IR) or Her Majesty’s Revenue & Customs (HMRC)
The other paid to the Local Government (Local Councils)
The following table will illustrate the main components of taxes payable by different individuals / organisation.
||Name of the tax component
|1||Income Tax||Individuals||HMRC||On Salaried employment, Self-Employment, Savings Income including Rental Income.
|2||Pay As You Earn (PAYE)||Individuals||HMRC||On Salaried Employment.
|3||National Insurance||Individuals / Employers||HMRC||On Salaried employment, Self-Employment, Savings Income including Rental Income.
|4||Corporation Tax||Companies||HMRC||Payable on profits made by the Company.
|6||Capital Gains Tax||Individuals, Trusts and Estates||HMRC||Chargeable on Capital Gains more than £10,680 per year.
|7||Customs & Excise Tax||Importers & Exporters||HMRC||On Imports Into and Exports Outside U.K.
|8||Motor Tax||Motor Vehicle Owners||HMRC / Local Councils||E.g. Vehicle Registration, Fuel Duty, Tax Disc, Toll Charges, Congestion Charges, Parking Charges and Fines etc.,
|9||Council Tax||Individuals||Local Councils||Payable for Domestic Property.
|10||Business Rates||Businesses||Local Councils||Payable for Non-Domestic Property.
The above are the main components of tax in the U.K. Apart from the above there are certain minor elements of taxation depending on the circumstances such as Inheritance Tax, Stamp Duty etc.,
Each of the above components in itself is a separate topic and it will require an article for each topic which I intend to cover in future …..
“In this world nothing can be said to be certain, except death and taxes" said Benjamin Franklin – the famous scientist.
If I may change the same a little bit “In this world nothing is left untaxed, except death and taxes”