Stressed by tax?
Get Earnr Pro





Tax is a compulsory amount of money that is paid to the government so that they can provide public goods and services like education and healthcare.

More detail:

Tax is a compulsory charge imposed on an individual or business. The money from this Tax goes to the government so that they can provide public goods and services like law enforcement, public education etc.

The UK has a progressive taxation system. This means that individuals with higher incomes should pay a larger percentage of their money in taxes than individuals with lower incomes. This is seen as a fairer system of taxation.

In the UK, the tax system is overseen by HMRC. Their job is to collect taxes and enforce tax rules.

There are lots of different taxes in the UK. For example, Income Tax must be paid on all income above a given threshold. This Income Tax is automatically deducted from Employees through the PAYE system, but Self-employed individuals must submit a Self Assessment to pay their tax bill.

Another example of a Tax is VAT. VAT is a tax in the UK on the consumption of goods and services.

Back to Taxionary

You might also like...

decorative image for a blog

What is IR35 and do I need to worry about it?

There are loads of different tax laws in the United Kingdom. IR35 is very important to freelancers and contractors but can be a little confusing. Here, we explain simply what IR35 is and who it can affect.

Read more
decorative image for a blog

Flat rates for mileage vs actual expenses. What is better?

Self-employed individuals can use two different methods to expense business vehicle costs. Here, we investigate the positive and negatives for both methods and which one might be right for you.

Read more
decorative image for a blog

What is the EIS and how does it work?

If you are looking to invest in small and medium sized businesses, the Enterprise Investment Scheme (EIS) provides lots of tax reliefs for doing so. Here we discuss what it is and how it works.

Read more
Earnr logoDownload earnr