Taxes are set by the government as a way of funding the country's many public services; including the National Health Service, public transport services and the State Pension scheme, as well as the government itself. Tax administration is managed in the UK by Her Majesty's Revenue and Customs (HMRC).
Whether you work for yourself or for another company, you are required by law to pay taxes as an employed UK resident. Taxes are also payable on the interest you earn on most savings, on buying, selling and passing on property, on work bonuses and on some State Benefits. It's important to understand what taxes you are required to pay, because you can be charged a fine if you fail to meet your tax obligations. Here we explain the main taxes that most UK residents are required to pay, how to pay them and how they work.