- Direct taxes — i.e. taxes on what we earn which therefore come directly from our income before we see it [such as tax on income]
- Indirect taxes — i.e. taxes included in the price of items you buy. Even though the seller sends payment to the government, the buyer really bears the cost.
The main direct taxes are
- Income tax for individuals,
- Corporation tax for companies,
- Capital gains tax, for individuals and companies, and National Insurance. This is really a tax on individuals, employees and employers.
- Inheritance tax, which is a tax on wealth passing from a deceased person's estate.
The main indirect taxes are
- Value Added Tax (VAT) — a tax which is passed on through each stage of the supply chain from raw materials to finished goods sold to the public, or services supplied,
- Customs Duty - a tax on goods brought into the country,
- Excise Duty — a tax on things like motor fuel, tobacco, alcoholic drinks,
- Road tax — a tax on road users,
- Council tax and Business Rates — taxes on occupation of buildings
- Stamp Duty — a tax on certain documents, such as conveyances of land.
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The main taxes — Income Tax, Capital Gains Tax, and Corporation Tax, are administered by self-assessment.
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Unfortunately, there are people who will deliberately or negligently make errors in their tax.
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Call a CCCS counsellor at 0800 138 1111