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UK Tax Services
By Joanne Elizabeth


The word ?tax? evokes different kind of responses from different people. While some see it as a yearly headache that they have now grown accustomed to, there are others who see it as something that unfairly eats way a big chunk of their salary. But why do we after all have to pay taxes? Actually, the money that the government spends on public services such as education, health and the social security system comes from the taxes we pay.

Taxes are levied on a variety of goods and services in the form of value added tax or (VAT) and also on transactions like profits earned on sale of homes etc. Then, of course there is the income tax that is levied on our incomes. But, of course you have to earn over a certain limit to be eligible for an income tax cut.

Taxes always have certain allowances and exemptions for various conditions, which are stated explicitly in the national budget, a document which actually decides who pays what.

If you are a full-time employer, chances are that the tax you owe will be cut at the source and this will be reflected in your pay slip. Now, the question that arises when do you know when you should start paying the tax?

It is as simple as this. When you start earning, you are supposed to fill in a tax form that will notify your taxman about your income and make you eligible for a tax code. This particular tax code will determine as to when you must begin paying the tax.

Remember, you can never save yourself from paying taxes claiming that you weren?t aware whether your income is taxable or not? It is your responsibility to notify the taxman or you can become liable to some heavy penalty.

Most people employ finance accountants to file their tax returns. While it is not a bad move, you must be wary of who you employ. Don?t get carried away by the accountant?s bag of credentials and qualifications. Make sure he is a licensed individual who promises complete confidentiality for the information you entrust him with.

To save yourself from any unnecessary embarrassment, make sure you pay your dues i.e. taxes on time. What is going to go in your favour is if you start planning way before the tax deadline lest the taxman comes running after you.

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