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Taxation Policy in UK 2017
The tax payers are liable to pay adequate taxes on their incomes derived from various different sources. HMRC is a body, which regulates all the matters regarding tax and other duties. The funds collected with the help of tax payers in terms of their tax liability are used by the government for the benefits of the country. It helps in maintaining a stable position of money circulation in the market, which in turn will help in the overall development of the nation. The main obligation of the tax payer is to comply with all the rules and regulations of the HMRC. The tax payers should calculate his income in a correct manner by following all the provisions, and then calculate tax liability accordingly. All the required information and documents should be provided to the tax practitioner for checking the viability of the tax payments made. The tax set offs and exemptions should also be mentioned earlier so as to reduce the tax liability and make proper payments. The excess amount paid is also refunded back to the tax payer within a reasonable time period. All the tax managing information like name of the tax payer, his communication details, tax number, total income of the year, total income on which tax is to be paid, total tax liability etc. should be mentioned on the Income tax return. All the rules prescribed by the regulatory authority should be followed by the tax payer and his tax practitioner.
If all these provisions and regulations are not complied with, then the tax payer will have to bear the penalties or prosecutions. If the tax payer is found to provide incorrect information or unusual hiding of important information, then he will have to pay penalty on it as per the terms of the penalty system introduced. He will be held liable for misappropriation of information, which may hamper the tax payment system of the government. The HMRC will be eligible for punishing those tax payers, who don’t comply with the norms. The tax payers are given adequate time to pay the penalty amount and other fines. However, even if it is not paid within time, then additional consequences will have to be borne by the tax payer.