The tax code of the UK has been the longest in the world since 2009 the tax code of the UK has actually doubled since 1997 and is reaching 11520 pages. The changes which are made annual and the duty form the law known as the finance law. It may change the rates of tax and the principles. The taxations are called as the “Her Majest’s Revenues and Customs”. The local councils are those who collect the tax at business rates from corporate companies and households.
The largest source of income for the UK government is the income tax. The second would be the insurance contributions. The income tax was brought about after the Napoleonic wars and was permanently placed after 1842. The companies of the state were part of the tax after 1965 after which corporation tax was brought about. With that being brought into place, the income tax which was personal was brought down to 20 percent from 33 percent from the 2007 government from the 1979 government. Margaret thatcher was the one who helped in the indirect taxation and bring about less spending in the governments there fore having a lot more revenue for it to be spend.
VAT was added in the year as the Value added tax 19944 and other acts such as the finance act settled in via the Annual VAT tax. There was the standard tax that had a twenty percent and had a reduced rate of 5 percent with a zero rate . with this their were some services and goods that were exempt from the VAT.
There is a registration of eighty three thousand euro of vat which is exempt in the country. There si a time limit for claiming vat, the limit is 4 years with goods and 6 months for services. Vats are to be submitted every three months and those periods are called as the VAT Accounting periods. Business can decide on when they have to fill in their reutns and have to deal with the revenue and custioms .
Employees have to reduce their salary by the employment taxes there is also the insurance contributions they have to make. There is also the system of PAY AS YOU EARN that is about . all the business have to register their employess tho the revenue and customs department and they would give them a login and registeration . it is important to note that business should have their employess own a employess liability insurance that will help insure and compensate an employee if he she becomes hurt.
The rate of personal tax that a person has to pay depends on how much they earn. The current tax returns that a person has is 11000 per year. If it is 32000, then it would be of 20 percent. There is a add of 45 percent excedding 150000. There are many differernt taxes when it comes to savings and dividends