StudentShare solutions
Triangle menu

UK Tax System - Essay Example

Not dowloaded yet

Extract of sample
UK Tax System

With the government's source taken from the public taxation always greater than the amount that is intended for use by the government, taxes are levied to fund several programs. Other governmental policies are also geared towards the redistribution of wealth from the rich and poor respectively in relief operations, public education, social security benefits and reparations. However, fundamental methods of collection are not foolproof and possibilities for inefficiencies are always prevalent. Tax policies being a highly political and controversial issue do require extensive analysis and determination on its viability to gain the paying sector's acceptance and economic performance. The neo-classical economic theories whose studies believe that taxation brings about economic inefficiencies have suggested changes in the tax systems that would work to minimise the distortion. Tax remittances of the ordinary working sector accommodating deficiencies brought about by certain deficits were seen as the basis for the recognition of its disadvantages. However the complexities of the British Tax system have served to greatly increase the stress and expense to millions of taxpayers as tax season approaches in Kay(1990)1. Simplification of the British tax system has allowed the common platforms of many political parties in grandstanding tax rules and exemptions. Disadvantages in the assessment, calculation and collection of taxes are often criticized as ineffective and administratively expensive according to Emes and Clemens (2001)2.

Determined to maintain absolute performance of the economy, changes were aimed at creating several programs that redistribute wealth and prosperity to all. Tax cuts became a scene in fiscal reforms that has announced reductions in income taxes and simplification of the system which focused on the tax laws themselves without upsetting the current balance of tax burdens or taxes paid by the individual. Alternative tax base system was introduced that basically focused on income, expense and wealth. Income derivatives in the corporate ladder include Value added tax (VAT) and excise taxes while individual income tax has pre-existed along with social insurance continuity. On investment and entrepreneurship, under expenditures or consumption taxes, capital gains and sales taxation is considered tentative in nature. Property tax summarized under wealth taxation has gained support claiming that anti-wealth tax is funded by a coterie of wealthy taxpayers whose instinctive rejection of the system comes from the broad aspiration to become wealthier and amass more fortune by any means.

Income derived from gainful employment; pensions; shares and dividends; interest on savings and trust and rentals is deemed taxable at a certain level. Forming the bulk of revenues for the British government, each earning person below the age of 65 is afforded an income tax allowance or a tax-free allowance each year of 5,035Gbp. For earning persons of over 65 but below 74, any income above 7,280Gbp is taxable while elderly individuals whose income is below 7,420 are exempted from paying taxes. But where income is in excess of one's tax-free allowance, taxation is based on the age-related allowance. Earners, whose income is 1 to 2,150 above their mandated tax allowance, shall enjoy a flat 10% tax rate. Those whose accumulated gross ...Show more

Summary

This paper examines the selected elements of British tax policy that discusses the current alternative tax bases that relies on the fundamental aspect on income, expense and wealth. The paper also discusses its benefits and its disadvantages of the current tax system that studies its implication for future tax reforms.
Author : kenna44
UK Tax System essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"UK Tax System"
with a personal 20% discount.
Grab the best paper

Related Essays

Income Tax and Corporation Tax
The paper intends to examine and present importance of direct and indirect taxes and its implications; revenue generated by tax against total government spending; progressivity of income and corporation tax in UK; responsibility of notification of income and payment of tax for income tax and corporation tax separately.
9 pages (2250 words) Essay
Analysis of UK`s income tax provisions relating to antu-avoidance, tax planning and tax avoidance
For instance, an assessee has to pay 10% tax when his income is ?100,000, and he is required to pay 30% tax if his income is ?300,000. Majority of the countries around the world follows the progressive taxation as they conceive the same as more fair. Under progressive taxation, the difference between the distribution of income before the taxation and the distribution of income after the taxation is of great importance.
15 pages (3750 words) Essay
Evaluate the UK tax system in the context of Adam's Canon of Taxation
2008). This particular circumstance has led to occurrence and existence of gap between the profits stated for financial purposes and the amount of tax actually paid. There still exist no clear outline as to how extend this is an indicator of avoidance activity is actually tied up with the vexing question of what amounts to tax avoidance and the extent to which tax avoidance is undesirable and unacceptable in general (Wolfgang, et al.
8 pages (2000 words) Essay
Tax and Ethics
Furthermore, there are other credible tax reliefs that may reduce corporations’ tax burdens such as research and development relief. Several players make sure the completeness of the tax system in the UK such as companies, company’s professional advisers, Her Majesty’s Revenue and Customs or the Government.
4 pages (1000 words) Essay
Are wealth taxes a desirable part of a tax system To what extent does Inheritance Tax in the UK fulfil the role of a wealth tax
Wealth generally refers to the net-worth of a taxpayer. All his assets are included and the liabilities are deducted. Calculation of fair value of assets is easy in some cases and very difficult in others. A tax on this purchasing power of an individual is called wealth tax.
3 pages (750 words) Essay
UK Taxation: A Critical Review
2. If staff are engaged as employees, will careful use of ITEPA 2003 and especially 'Share Schemes' instead allow businesses to create flexible reward packages, which will better meet the business goals of (i) long term cost minimization and (ii) ensuring a stable and knowledgeable workforce
2 pages (500 words) Essay
Taxation System of UK
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 must be arranged in a manner that the tax payer knows when it is due.
10 pages (2500 words) Essay
UK Taxation System
Also the structures of certain taxes are also explained in this essay. Apart from this, some figure with respect to the contribution of the different taxes to the total revenue raised are also indicated wherever necessary. All the figures and different information quoted in this paper are extracted from the survey conducted by the Institute for Fiscal Studies on the UK Tax System for the fiscal year 2006-2007.
9 pages (2250 words) Essay
The UK Business Tax System for Small Business ESSAY & ANNOTATED BIBLIOGRAPHY (SEE INSTRUCTIOINS)
A common element f many such proposals is to eliminate end-of-year tax return filing requirements for some or all taxpayers. In a "no-return" tax system, revenues would be collected through some combination f withholding and end-of-year reconciliation by the tax agency; individual taxpayers would not file annual returns.
8 pages (2000 words) Essay
Individuals resident in the UK are liable to UK Income Tax on their worldwide income arising in a tax year
(James 2009:77) A UK company is subject to corporation tax and an individual who is resident in the UK is required to pay income tax in UK on earnings earned anywhere in the
4 pages (1000 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation