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Tax and You

Tax is money paid to the state by individuals and organisations. The amount paid by each individual and organisation depends on their earnings and financial dealings. Some tax goes to central government, some is collected by local government. Money raised by tax is spend on a wide range of public services and state departments – including the NHS, schools, roads, the armed forces and a lot more besides.

Few people would say they like paying tax, but the truth is, if we all didn’t pay tax we wouldn’t have free education or free health care.

There are a lots of different types of tax, from income tax to VAT to inheritance tax to many taxes most of us will never have to deal with (unless we become accountants at a big firm!) For most of us working as employees, the tax system as it relates to us isn’t often very confusing. However, it’s important to know that you are paying the right taxes and it’s important to know what to do if you think you are paying too little or too much.

If you are on the payroll of a company or organisation and you have questions about how much income tax you’re paying or how much you should be paying, you may wish to speak to your company’s human resources department (if they have one). If you’re a member of a trade union, they may also be able to offer advice. Of course, you can also contact your local tax office, which will hold your tax records. If you are self-employed or thinking of becoming self employed, your local tax office may be able to offer you a workshop on how you can work out how much tax you pay and how to pay it. Citizens Advice (CAB) is also a good source of information and advice.

If you have any queries or questions about tax or just want to know more, the DirectGov website – link below – does a very good job at explaining all the ins and outs of the tax system.

Links and contact details

Name: HM Revenues and Customs
Web: www.hmrc.gov.uk
Info: HM Revenues and Customs is the government department responsible for tax .

Name: Direct Gov – Tax and You pages
Web: http://www.direct.gov.uk/en/YoungPeople/Money/TaxesAndYou/index.htm
Info: Directgov is the official UK government website for citizens. It provides information and online services for the public all in one place. The above link provides loads of info about the tax system.

Name: Citizens Advice Bureau
Web: www.citizensadvice.org.uk
Info: Citizens Advice Bureaux provide free, confidential and independent advice from over 3,000 locations including in bureaux, GP surgeries, hospitals, colleges, prisons and courts.

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