Income Tax, yes, and another income-related tax called 'National Insurance' which nominally funds both free health care and a state pension.
VAT is charged on most goods and services in the UK, and is just considered part of the normal price, it's not like in the US (last time I was there) when purchase tax is itemised even on a grocery shopping bill, and varies from state to state. Some goods are VAT exempt, books, children's clothes and shoes, most foodstuffs, plants, animal feed, helicopters, the list goes on. Also zero-rated are financial and property transactions (for those there other applicable taxes!). Some goods are charged VAT at less than 20%, such as 5% for home energy, child car seats and a few other things.
When you're paying a local tradesperson you'd normally try to do a deal where most of the VAT mysteriously disappears in return for cash-in-hand payment, easier in a rural setting such as mine where everyone knows everyone else. If I'm a tradesman buying building materials from a builders merchant I wouldn't pay VAT, but if I identify as a private buyer I would, so another negotiable grey area there! However these sorts of arrangements are getting more difficult to, er, arrange, even here in bandit country.
(This post was last modified: 11-30-2021, 02:26 PM by Super.)
VAT is charged on most goods and services in the UK, and is just considered part of the normal price, it's not like in the US (last time I was there) when purchase tax is itemised even on a grocery shopping bill, and varies from state to state. Some goods are VAT exempt, books, children's clothes and shoes, most foodstuffs, plants, animal feed, helicopters, the list goes on. Also zero-rated are financial and property transactions (for those there other applicable taxes!). Some goods are charged VAT at less than 20%, such as 5% for home energy, child car seats and a few other things.
When you're paying a local tradesperson you'd normally try to do a deal where most of the VAT mysteriously disappears in return for cash-in-hand payment, easier in a rural setting such as mine where everyone knows everyone else. If I'm a tradesman buying building materials from a builders merchant I wouldn't pay VAT, but if I identify as a private buyer I would, so another negotiable grey area there! However these sorts of arrangements are getting more difficult to, er, arrange, even here in bandit country.