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Tax (common house hold + personal tax (pay as you earn (PAYE) (income tax…
Tax
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why
Governments use tax revenue (income)to fund essential public services which benefit the community. examples include security, health, education and public transport system as well as a range of recreational amenities such as parks, playgrounds and swimming pools
The government uses taxes to help make sure there is more distribution of wealth within the economy. people who earn more should pay more tax
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tax liability
Having an income generally creates a tax liability. This means that a certain amount of that income must be paid over to the state. It is the responsibility of each person it pays the correct amount to taxation. without this income, the government will not be able to fund public services
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types of tax
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indirect taxes
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e.g. VAT , excise duty and customs duty
What
is a compulsory payment to the government, charged on income, business profits or added to the cost of goods and services
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excise duties
excise duty is a tax levied on certain goods and materials, including: e.g. Motor fuel ( petrol and diesel), heating oil, natural gas, solid fuel, alcohol and tobacco
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emergency tax
if you are on emergency tax you will pay more tax than you need to for a while and will have very little take - home pay. once the tax is sorted out, you will get back any tax you have overpaid
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