Neglecting your taxes is not something to be taken lightly, and the consequences of tax evasion can be serious. If you’re unsure about your personal or business tax, our blog gives you a complete overview of what could happen if you fail to pay. To find out more about tax and tax evasion, keep on reading.
Paying Your Taxes: A Breakdown
Here in the UK, paying your taxes is an obligation. These taxes go towards funding the NHS, public schools and other public services. This section of our blog breaks down the key things you need to know about paying taxes.
The tax system in the UK is made up from a range of different taxes. Individuals with a salary or monthly income will pay national insurance tax and income tax. Tax can also be paid in other forms such as VAT (value added tax) when purchases are made, as well as council tax, which funds local services.
Individuals with a monthly income usually pay income tax, as well as national insurance tax, but for self-employed individuals, this could be a bit more tricky. If you’re self-employed or you run a business, you will need to complete a self assessment and fill out a tax return annually. This is to ensure that you pay the right amount of tax, as your business may not be taxed the standard way. Head to our website for tax advice.
Consequences Of Not Paying Your Taxes
As we’ve already mentioned, paying your taxes is a legal obligation, and ignoring this could result in some serious consequences. The most common legal repercussions for not paying your taxes are fines and potentially imprisonment. Here in the UK, HMRC can launch thorough investigations to find people who haven’t paid their taxes and enforce a penalty. And, if you haven’t paid your income tax, or made an agreement with HMRC to pay it, they can potentially penalise you for this too.
Deliberate tax evasion will have more serious consequences, but it’s still wise to get your taxes in order to avoid any situations with HMRC. Aside from legal consequences, having tax problems can damage a personal or business reputation which could be detrimental.
Michael Filiou: Accounting Services You Can Rely On
If you’re looking for personal tax advice or accounting services, the team here at Michael Filiou are here to help. With years of experience under our belt, we are here to help you with your accounting and tax needs.
To find out more about our services, feel free to contact our wonderful team today for more information at hello@michaelfiliou.com
