The monetary charge enforced on an individual or any legal entity by the Government is called tax. Under the Central Government in UK there lies another non-ministerial department, named as Her Majesty's Revenue and Customs. The responsibility of this department is to levy and collect both direct and indirect taxes.
Taxes include insurance premium tax, excise duties, climate change levy, value added tax, air passenger duty, customs duties, aggregate levy etc. The Central Government of the United Kingdom finances the local government by arranging several grants.
Scope of taxation in UK:
Tax, imposed on individuals or companies, is the principle source of revenue for the UK Government. The collection of taxes are not based on the citizenship of individuals or the place of enrollment of different companies. In addition to that, a person who resides in the country has to pay tax on their worldwide profit. But if the person is not domiciled, then taxes will be taken on the basis of the amount of transferred money to the United Kingdom.
Different Sources of Revenue:
The different types of taxes that are levied by the UK government are: