Life in the UK

Study topic

Paying tax in the UK

Paying tax is one of the responsibilities of living in the UK. The test covers the main taxes and what they pay for.

Key facts to remember

  • Income Tax is paid on earnings, pensions and most other income.
  • National Insurance contributions help pay for benefits and the State Pension.
  • Tax is collected by HM Revenue & Customs (HMRC).
  • Most employees have tax deducted automatically through PAYE.
  • Taxes pay for services such as the NHS, roads and education.

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