Income tax Flashcards
1
Q
What does PAYE stand for?
A
Pay As You Earn
2
Q
What does HMRC stand for?
A
Her Majesty’s Revenue and Customs
3
Q
What is HMRC?
A
The government department that collects taxes
4
Q
What type of incomes are taxed in the UK?
A
Wages - Profits - Taxable benefits - Pensions - Income from property
5
Q
What does the government use revenue raised through income tax on?
A
Roads - Education - Police - Armed forces
6
Q
What is the most common way for people to pay income tax?
A
Automatically off your wages by the employer and paid directly to HMRC
7
Q
What is PAYE?
A
A system by which your employer pays your income tax directly to HMRC by taking it out of your wages
8
Q
How do you pay income tax if you’re self-employed?
A
Through “self-assessment” - by completing a tax return
