Income tax /council tax are they essentially the same thing and is the money from both used for the same thing

Answer 1

There is, as previous answerers have pointed out, a great difference between income and council tax. Income tax varies, slightly, with the amount of money you earn. So, those more able to contribute more, this is, of course, a much more just system of taxation. If we were pushing a car, would we not expect the strongest to push harder? Ideally we would have a local income tax to replace council tax

Answer 2

All taxes have the characteristic that they are payments we make to cover the cost of things which are better dealt with on a communal basis. These cover items such as defence, which is truly national, hospitals, police and down to refuse collection, which is much more localised.

Generally, the more national the expenditure the more likely it is paid for out of national taxes such as income tax. Local services tend to be paid from local taxes ie council tax. The division between the two is not always clear nor consistent and it should be remembered that central government contributes large sums to the local councils, so some local services are being funded from national taxes.

There are many different ways of calculating how much an individual should contribute to a particular tax. Income tax is, obviously , based on income. VAT and stamp duty are taxes on expenditure. Council tax is based on property values using the theory that richer people tend to live in more valuable houses.

All these methods of calculation are attempts to make the imposition of tax "fair". The trouble is, the definition of fair varies from one individual to another.

Answer 3

Hello,

NOP!! I disagree with you, income tax and council tax are most definately NOT the same thing at all. I think you are confusing two different forms of taxation here IMO.

1) Income tax is paid at a specific rate, defined by how much you earn. The tax code you are given by the inland revenue defines the rate at which you pay income tax. So for example if your on a low salary say £12,000 a year you would probably only pay income tax at a basic rate of 22.5% approximately. If you were say a CEO or company director and earn £250,000 a year you would pay income tax at 40%.

**How much income tax you pay is related directly to salary & Tax coding.

**NOTE: Income Tax goes into government coffers i.e. no.11 downing street and Gordon Brown. Money collected from income tax goes on wider government spending like budgets for police forces, defence & MOD, Budgets to the NHS, bugets to local authorities, budgets to run government depts such as the home office, MI5, imigration,etc,etc.

2) Council Tax on the other hand is calculated upon your location (local authority in the area you live), the size & type of property you live in (the value of your home= which band you will be assesed), and also the number of people living in the property.

Council Tax is a fixed amount each year (although it keeps going up as far as I can see) and is used to pay for "local services" instead of national or government expensitures. So for example refuse collection services, road repairs, street lighting, local fire services, council administration,etc,etc.

They are NOT the same, one is local the other national. (both hurt in the pocket though, thats true enough!!).

IR

Answer 4

No they are not the same. Income tax is a tax on income (surprised?) and council tax is levied by the council to pay for council expenditure (rubbish collection, police etc).

Bit obvious really.

Answer 5

No. Income tax goes to the treasury and is varied according to your income. Council tax does not depend on your income but where you live and the type of property and goes to your local council.

Answer 6

income tax is what is taken off ya wages, council tax is paid for the house you live in. but they do go to paying all the same things

Answer 7

Income tax is related to the amount of money that you earn and goes into the national coffers (NHS, Defence etc)

Council tax is related to the value of your home and goes to local services (Police, Fire etc)

Answer 8

Income tax is paid on your income - salary. wages, profits - while council tax is paid on the value of your home/house.

Answer 9

no

income tax is tax based on your income and goes to central govt
this one is irrespective of where you live.

council tax is tax based on your abode and goes to local govt.
this one is irrespective of your income, although you can get benefits to help pay it if you on low income.