Jump to homepage
Jump to accessibility information page
Jump to main menu link
Jump to sub menu links
Jump to page content
Tax
Taxation
Taxation is the means by which government raises money to fund public expenditure including Education, Health, Social Security and other public services. It is a ‘necessary evil’ and over the years, tax rules have changed considerably. They are always subject to controversy. We all complain that we pay too much tax and rarely view tax rises favourably! On the other hand we would (and do) complain if the public services fall below acceptable standards, so a balance has to be struck. This balance is crucial and is reviewed each year by the Chancellor and his team in their Budget. Both companies and individuals pay tax but in this section we will only be considering individual taxation.
How do we as individuals pay tax?
We are taxed on:
- Spendings - VAT
- Earnings - Income Tax Profits on Investments
- Capital Gains Tax
- Inheritance Tax - on what we may inherit
- Where we live - Local tax/council tax
If we live or work abroad we may be subject to further local taxes.
So it seems that tax is very difficult for us to avoid and therefore some understanding and a little planning can make a significant difference.