Quote:
Originally Posted by Steve Jordan
In the U.S., you're taxed (primarily) according to the income you receive. Some people continue to get paid by their employer when they are out sick, so they still pay tax on "sick leave" time. If you do not get paid during sick leave, you pay no tax on that time. (Whether you get paid or not depends on the job.)
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If you have a progressive income tax then if you get sick and get less money then if the total amount you earn that year is reduced then the tax you should pay is reduced in a non linear way. That means that an employer can never exactly deduct the correct amount of money.
So if in the UK they do not have tax returns or tax payments then the tax system must be much simpler than in most countries and the tax cannot be progressive.