Nobody downloaded yet

UK Taxation System - Research Paper Example

Comments (0) Cite this document
Summary
The author of the following paper states that tax is applicable in the UK for individuals and companies. While individuals are taxed heavily irrespective of their income and social standing, companies enjoy reliefs so that business enterprises envisage growth and expansion. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.6% of users find it useful
UK Taxation System
Read TextPreview

Extract of sample "UK Taxation System"

Download file to see previous pages There are certain types of income that do not attract tax. They are benefits, income from tax-exempt accounts and special pensions. Residents of the UK are eligible for tax-free allowance called personal allowance, which is an amount of taxable income which the resident is allowed to earn each year. This allowance is free of tax. For the year 2008-2009, the tax-free amount is fixed at '5,435. If the individual is over the age of sixty-five, this amount is likely to increase. A registered blind person can claim tax-free blind person's allowance. Income tax is applicable on taxable income after the tax-free allowances. Certain deductible reliefs and allowance will reduce the tax bill of an individual. Some of the deductible allowances are married couple allowance, maintenance payment relief, and tax relief on pension, donations to charity based on gift aid or payroll giving. There are some other amounts which can be reduced from the tax bill. They are an allowance that decreases tax in retirement, tax advantages of personal pension and offers to charity (Income Tax, n.d).
The revenue-raising methods of the UK government have come to debate with the abolition of 10 percent tax. The 10 percent tax was abolished to simplify the tax system. This is likely to affect the poor household which enjoyed limitations in paying tax. The reduction of the tax rate from 22 to 20 percent and the abolition of 10 percent tax are set to affect people whose annual income is less than '18,500. This initiative has raised argument because five million people who fall under the low earning group is targeted to raise more tax revenues. Simplification of tax is appreciable but the abolition of 10 percent requires identification of people who fall under the category and necessary benefits should be provided to help them. While families without children would be the worst effect, low-income families with children are expected to be in a better position. The tax reform will affect the already high cost of living of poor people (Abolition of 10 p tax, 2008). ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“UK Taxation System Research Paper Example | Topics and Well Written Essays - 3000 words”, n.d.)
UK Taxation System Research Paper Example | Topics and Well Written Essays - 3000 words. Retrieved from https://studentshare.org/business/1502765-uk-taxation-system-essay
(UK Taxation System Research Paper Example | Topics and Well Written Essays - 3000 Words)
UK Taxation System Research Paper Example | Topics and Well Written Essays - 3000 Words. https://studentshare.org/business/1502765-uk-taxation-system-essay.
“UK Taxation System Research Paper Example | Topics and Well Written Essays - 3000 Words”, n.d. https://studentshare.org/business/1502765-uk-taxation-system-essay.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF UK Taxation System

UK Taxation System

... UK Taxation System Income tax in the UK relates to tax charged on individuals and partnerships. An individual’s liability to UK income tax is determined by whether the individual is resident or ordinarily resident in the UK. This has implications for the establishment of the tax treatment of an individual’s UK and overseas income (BPP Learning Media 2009, p. 15). Residency rules BPP Learning Media (2009) indicates that an individual is considered to be resident in the UK and is therefore liable to income tax if in any tax year the following criteria are satisfied. i. Present in the...
11 Pages(2750 words)Essay

The U.K taxation system

...? Taxation Taxation The U.K taxation system Who is taxed and under what circumstances? Any person who has worked in the UK for a length of time i.e. either a UK citizen or an immigrant who has a work permit is required to pay tax in the UK (Adam, Kaplan and Institute for Fiscal Studies, 2002). The tax year usually begins on April 6th depending on a person’s employment, which could either be PAYE or companies. What is taxable and what are the tax rates? Taxable income includes income from employment either from part-time, full-time, or temporary employment. However, if people receive benefits or perks from their employer,...
11 Pages(2750 words)Essay

Taxation in UK

...urban land property since these are poor in its administrative capacity and social balance. Useful and productive steps in tax administration, tax policy structure of both the direct and indirect tax collection can have improved revenue structure in an economy where fiscal structure can have ideal balance between economic revenue and expenditure. More investment that is public directed to infrastructure building, public health and education system and social and welfare development of societies. Progressivity of Income Tax and Corporate Tax in UK Progressive tax means that the tax rate increases as the taxable income increases therefore an individual that earns more has to pay higher tax rate in...
12 Pages(3000 words)Essay

Evaluate the UK tax system in the context of Adam's Canon of Taxation

...?Running Head: UK TAX SYSTEM Evaluate the UK tax system in the context of Adam's Canon of Taxation Insert Insert Grade Insert Name 26 January 2011 Evaluate the UK tax system in the context of Adam's Canon of Taxation Introduction UK is considered to have a considerable degree of conformity between tax and financial accounts although major exceptions exist, and as such, the ultimate position is one of partial conformity (Wolfgang et al. 2008). This particular circumstance has led to occurrence and existence of gap between the profits stated for financial purposes and the amount of tax...
8 Pages(2000 words)Essay

Australian Taxation system

...?Australian Taxation system Research done in several Australian newspapers has testified that taxation is the backbone of the Australian economy. The country’s system of government is divided into the federal government which controls all taxations that take place in the country. There are also state governments which control taxation taking place in the several states that are in the country. The last system of government present in Australia is the local governments. According to Macfarlane in his book “Australian Monetary Policy in the Last Quarter of the Twentieth Century”, it is evident that Australia has low...
6 Pages(1500 words)Essay

Taxation System of UK

...Explore and explain the desirable characteristics of a good taxation system. Evaluate the extent to which the current UK income tax system fulfils these characteristics Introduction According to Adam Smith there are four main principles or maxims of taxation - equity, certainty, convenience and efficiency. Equity refers to equality in the distribution of taxes so that every tax payer has the capacity to pay what he has been asked to pay. Secondly the tax payer must be sure of what he is going to pay, for what reason, the amount and so on. Thirdly the payment of tax must be convenient to the tax payer. For example, quarterly payment of taxes...
10 Pages(2500 words)Essay

UK Taxation

...Taxation Definition of terms: British Tax System: In 1901, the progressive tax system was introduced in Britan whereby both earned and unearned income was taxed (Macleary, 1991:15). The theoretical basis of taxation in the UK has been set out on the basis of comprehensive tax, which is a direct tax on all forms of income earned by an individual and is defined as the amount consumed by the individual without depleting wealth. As an alternative to the comprehensive tax system, the expenditure tax system taxes an individual on the amounts of his total receipts minus the amounts spent on his purchases, together with...
8 Pages(2000 words)Essay

Adam Smith & UK Income Taxation

...recent works on the principles of good taxation came from Murphy (2009). Tobin (2010) defended the Murphy (2009) proposals. Assessing the UK tax system overall, Tobin adopted Murphy’s view that the “UK taxation system is now of such a nuisance and complexity that the principles put forward by Adam Smith are no longer entirely adequate to define taxation and must be updated (Tobin 2010, p. 6). This implies that Murphy (2009) and Tobin (2010) share the belief that the current taxation system in the UK follows the same principles proposed by Adam Smith in 1776 and 1784. In...
18 Pages(4500 words)Essay

Taxation Law in the UK

... the definition of necessaries and bring more goods in it. Other than these, VAT is a very convenient system of taxation. Few choices are available for UK to make its taxation fairer. Fixing the flaws of the current system is a very good option at this time. References Lads, D. & Chowdry M., ‘Capital Gains Tax’, Taxation Principles and Policy. 2007. Value Added Tax Act 1994 (UK) Smith, A., ‘Taxes upon consumable Commodities’, Wealth of Nations, Vol II, Book V. 1776.... Taxation Law in the UK Value Added Tax (VAT) is a tax on value added to the raw materials, goods and services as they are transformed into finished goods. VAT is charged at different rates on different products. Some products are...
3 Pages(750 words)Essay

The Roles of the Following in the UK Taxation System

...The Roles of the Following in the UK Taxation System 1. Statute In the taxation system of the United Kingdom, similar to the other commonwealth nations, the approach that has been given to statutes in the constitution process is the literal interpretation of the laws of tax. The involuntary adoption of the purposive interpretation of a statute so as to craft glosses on to it, which are not text based is also a purpose of the statutes’ construction. Traditionally, the British court’s attitude was based upon the perspective of the court’s proper role. Generally, the main role played by tax law statutes in the UK is that of courts’ interpretation. At this juncture, it is good to take note of the fact that courts were not involved... not...
10 Pages(2500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic UK Taxation System for FREE!

Contact Us