Quote:
Originally Posted by tompe
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.
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We do have a "progressive" tax system in the UK, but relatively few people fall into the higher rate (40%) tax bracket. If you only pay the standard rate of income tax (23%), and you have no other form of income other than a single salary, you don't need to fill in a tax return (banks, etc, automatically deduct standard rate tax from interest payments). If you are in the 40% tax bracket then you do indeed need to fill in a tax return.