2006-11-12 12:44:39 · 5 answers · asked by bunshin87 1 in Business & Finance ➔ Taxes ➔ United Kingdom
In theory, to make the tax burden fairer on tax payers.
Poor pay less and rich pay more. ie 0% on first c£5000, 10% on next c£2000, 22% on next c£25000 and 40% thereafter.
2006-11-13 05:46:05 · answer #1 · answered by Willy 2 · 1⤊ 0⤋
There a basically only two types of Income Tax Rates in the U.K.
these are as follows:
Your Tax Code is made up of Tax Allowances. If you have any deductions, they are taken away from your allowances to give your tax free income for the year.
After that you will pay tax at the following rates on your earnings or pension:
On the first 2,020 pounds earned you pay tax at 10% (the starting rate).
on the next 29,380 pounds earned you pay tax at 22% (the basic rate)
On any income over 31,400 pounds earned you pay tax at 40% (the higher rate)
The Inland Revenue will NOT reveal how your Tax Code is made up to anyone other than yourself (or your agent if you have one)
Further information can be obtained from your local Inland Revenue Office who will supply you with FREE Leaflets and Booklets, or contact www.inland revenue.gov.uk
I hope you find this useful
Yours Dave M
2006-11-12 13:53:08 · answer #2 · answered by David M 1 · 0⤊ 0⤋
Because no governing parties dare to repeal or revise the obsolete tax laws but only to add modified ones on the old tax systems.
No politically aware person would make abrupt changes to the existing system. No one is sure about the actual outcome and the response of the public.
2006-11-12 12:54:14 · answer #3 · answered by exsolister 2 · 0⤊ 0⤋
Because the bloody government makes the rules!!!Agghh
2006-11-12 17:58:38 · answer #4 · answered by Cockneyrebel 4 · 0⤊ 0⤋
Bcos it was categorised into income-based categories!!!
2006-11-12 12:47:27 · answer #5 · answered by Yahia M 2 · 0⤊ 0⤋