Citizenship Theme B - TAXES, CHANCELLOR OF EXCHEQUER, AND BUDGET

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TAXES- (generally a lot of government revenue comes from taxes, mostly income tax, and least from business tax (As of 2018) )

Direct Taxespaid by person or organisation

  • Income Tax = tax on your wages when you earn above a certain amount
  • Inheritance Tax = tax on money left to you in a will
  • Corporation Tax = percentage tax based on profits of business
  • National Insurance contributions = form of taxation based on income, originally to fund welfare state, now fund state pensions.
  • Council Tax = paid anually based on value of property you live in, collected by local authority

Indirect Taxes - paid on goods and services. Advantageous as they are cheaper to collect and penalise spending, not success.

  • VAT - tax on most things you buy, currently 20%, some items VAT free e.g. kids clothes and food.
  • Excise Duties - tax levied on items such as alcohol or tobacco. Discourages spending on items harmful to health (costs taxpayers money through NHS.)

HMRC (Her Majesty's Revenue and Customs) -non minesterial gov department responsible for:

  • collection of taxation
  • payment of some state support
  • admin of some regulations such as national minimum wage
  • investigating smuggling, fraud, and tax evasion as a law enforcement agency, where punishment for tax eveasion can be imprisonment.

THE CHANCELLOR OF THE EXCHEQUER

Governments chief financial minister. Key duties:

  • Raising revenue through taxation or borrowing
  • controlling how gov spends
  • leading Treasury
  • Allocating expenditure limits for all other

Comments

rc1206

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very helpful thank you for the resource :)

WildenSowl

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Hello there. Thanks for sharing the information. Very reasonable!! Tbh, I wish my friend from Greedy Rates had shared this thread earlier. We discussed taxes last weekend. I think it was one of the most informative talks I've ever had with my friend. I mean, I'm not an expert in accounting. That's why I always ask him to explain such complicated things to me. And he's actually the only person I know who can explain complex things using simple words. That's why I'm always grateful to him. I'm really lucky to have such a friend, I guess. Anyway, thanks for the info, man. Wish you all the best.