Tax types Flashcards
Definition of income tax
A tax you pay on your income. The more you earn, the more you pay.
Definition of National insurance
A tax on earnings and self-employed profits. It allows you to qualify for certain benefits including the State Pension.
Definition of corporation tax
A tax your company or association pays to HM Revenue and Customs (HMRC) on profits.
Definition of property tax
A tax that is based on the value of a property. The more valuable a property is, the more tax the owner will have to pay.
Definition of inheritance tax
A tax on the estate (the property, money and possessions) of someone who’s died. You don’t have to pay this if the value of your estate is below £325,000.
Definition of VAT
A tax added to most products and services sold by businesses. Businesses have to register for this if their taxable turnover is more than £90,000
Definition of council tax
An annual tax you pay to your local council. The cost is set by your council and goes towards funding local services. A portion of the tax is also used to help fund the police and fire rescue services.
