TAXES

Every country has a system whereby taxes are paid by the public and handled by a department of the government. In the UK, there are a number of taxes that are collected from the public in order to fund most of its services. In the UK, taxes have to be paid. Failure to do so, will incur a penalty and in most cases, imprisonment. In some case, the tax is taking directly from your wages without the individual having to do anything. For example, the income tax and national insurance, they are deducted right before you receive your wages.

 

With national insurance, this is paid so as to build up your entitlement to certain state benefits, including the state pension. This all depends on how much an individual earns and whether he/she is employed or self-employed. However, payment of this all stops once the State Pension Age has been reached. From the age of 16, if liable to have a National Insurance, this is paid provided the individual is employed or self-employed. A National Insurance number is according to HMRC, “your own personal account number. The number makes sure that the national insurance contributions and tax you pay are properly recorded in your account. It also acts as a reference number for the whole social security system”. Every national insurance number is different and once issued, can never be changed even if an individual moves abroad, gets married or changes their name.

 

http://www.hmrc.gov.uk/incometax/basics.htm

http://www.adviceguide.org.uk/england/tax_e/tax_how_to_pay_income_tax_e/the_pay_as_you_earn_paye_system.htm