UK tax system

The UK tax system funds public services like healthcare, education, and infrastructure through various taxes. Income tax is paid on earnings, with rates increasing as income rises. National Insurance contributions support social security and health services. VAT (Value Added Tax) is added to most goods and services, paid by consumers. Other taxes include corporation tax for businesses, property taxes, and stamp duty on property transactions. Tax is collected by HM Revenue & Customs (HMRC), which ensures compliance. The system aims to distribute resources fairly, with allowances and reliefs to aid low-income individuals and support economic growth.