Topic 8 Flashcards
1
Q
What does tax/national insurance pay for?
A
Tax is used to support government spending so that they can afford to run the country. It covers public services, infsstructure, and income support. Anyone who receives a taxable income pays tax.
National insurance pays for the national health service (NHS), the state pension and a number of other state benefits.
2
Q
Who collects tax/national insurance?
A
The HMRC.
3
Q
How do employees pay tax?
A
Their employer calculates the correct amount of tax to deduct, as they pay this to the HMRC in behalf of the employee.
