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British Tax System

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MANAGEMENT

British Tax System
Duties and responsibilities of the tax practitioners in the UK tax environment
Introduction
The British government requires that its entire citizen pay taxes as stated by law. Taxes account for much of Government revenues. The payments of taxes involve or may involve two levels of government, the local and the central government. The central government revenues (Her Majesty’s Royal Revenue and Customs), comes primarily from income tax, National Insurance contributions, Value added tax, corporation tax and fuel duty. On the other hand, local governments get their revenues through grants from central government, business rates in England, Wales, Scotland and Northern Ireland, Council Tax, fees and charges from parking. It is worth to note that taxes contribute to about 40% of the GDP and such the government has made it very clear that taxes have to be paid so as to enable it have requisite resources to fund her operations (HMRC, 2014). Economic analysts and critics say that the UK tax environment is one of the world’s most unfriendly to the citizenry. It is imperative to note that as much as there are tax exemptions in the UK; citizens still have to pay taxes virtually in all areas. But what are some of the main taxes that define the tax environment in UK (Michaely et.al, 2012). This paper takes a look at the tax that are paid and who is supposed to pay what and at what rate. In the fiscal year, 2014-2015, the UK government projects to raise 648.1billion Sterling Pounds, or 37.7% of the GDP. Of this amount, taxes are projected to bring in 606.0 billion Pounds, with the remainder coming from other sources like surpluses from public sector industries, rent from state property and other areas. In the taxes, Income tax, National insurance contributions and VAT take the lion’s share accounting for a projected 60%. In the estimates,

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