Income Tax. What is tax?. (An amount of) money paid to the government, which is based on your income or the cost of goods or services you have bought Definition – Cambridge Dictionaries Online. What are the main types of tax paid by individuals?. Income Tax (also known as PAYE)
A tax on your personal income whether you are employed or self employed. It includes wages, pensions, interest on savings. You pay it on your income in the tax year from 5 April to the following 6 April. Income tax is collected under PAYE on wages and pensions.
There are various excise duties – they include Car Tax and tax on goods such as alcohol and tobacco.
You pay VAT, included in the price, when you buy goods and services. Some goods, including newspapers and food (but excluding crisps and sweets) don't attract VAT.
A tax on the value or size of the home you live in to help pay for local services like policing and rubbish collection.
Each week when he gets his pay, Bill checks his payslip.
On a typical week’s pay of £420.00 the company takes off:
On the next page you’ll see one of Bill’s payslips.