Every nation in the world has rules and procedures to calculate and manage the taxes to be paid periodically by the taxpayers. How does the tax system British? Let’s together in short salient aspects of the tax system of Great Britain. The UK tax system is divided into two levels of taxation. The first level is administered by central government, while the latter is managed by local authorities. In the first case, the tax managed at the central level to refer to those on the income of individuals , on the corporate income tax , the value added tax and National Insurance . Taxes managed at the local level provide for the payment of local taxes and Council Tax .

The tax on personal income tax deals with the taxation at the central level, as we stated before. It applies to different types of income from those arising from work until those concerning pensions and leases. The determination of taxable income is calculated on an annual basis. The collection can be done in two different ways: through self-declaration or through a system called “Pay As You Earn (PAYE). Self-declaration allows the taxpayer to provide all the details of the different income in the tax return so that they may suffer a tax assessment and, consequently, can be defined as the amount of tax due. Instead, the system automatically picks up the PAYE tax contribution directly from the wages of workers by keeping a percentage of monthly or weekly.

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Taxes on corporate income tax burden especially on the profits of corporations, cooperative societies and of any entity or organization that generates profits The value added tax is based on the application of different rates of tax rates according to property, benefits and services. The National Insurance is an identification number used by the employer to pay social security contributions and health With regard to taxation at the local level, is expected to pay a Council Tax or a tax on real estate In addition to this tax calculated on the value of the dwelling of the taxpayer, there are no local income taxes.