Are you paying your taxes?

No one likes paying taxes.  After you have worked long hours it might be tempting to resent the amount of money that is sent to the government.  There are also a number of people who pay no tax at all.

Paying your taxes is considered a civic duty, although doing so is also a requirement of the law. If you do not pay your taxes, the government agency that oversees collection of taxes  will require you to pay your taxes or else face penalties, such as fines or going to jail.

Taxes take many forms, too. When you work at a job to make money, you pay income taxes. Depending on how much money you make, a certain percentage of the money you make is withheld and sent to the government.

When you buy things at a store, you also usually pay sales tax, which is a percentage of the cost of the item charged by the store. If you own property, you also pay property taxes on the value of your property.

You might wonder why do we have to pay taxes at all?

Why do we need to pay taxes?

The money you pay in taxes goes to many places. In addition to paying the salaries of government workers, your tax dollars also help to support common resources, such as police, nurses and teachers.

Taxes  fund public libraries and parks. Taxes are also used to fund many types of government programs that help the poor and less fortunate, as well as many schools. These programmes also extend to include health schemes such as National Insurance Scheme (NIS) and pension.

What about self employed persons- do they pay tax?

Everyone who earns a living most pay their taxes. self employed person still need to declare their income and pay the relevant taxes.  By their contributions they will be in a better position to apply for pension or other benefits from the government.

It is important for self employed persons to keep proper records. Well-kept records may shorten the length of time an income tax audit takes to be completed.

They keep you better informed about the financial position of your business. They can also mean tax savings, as it can be used as a reminder of deductible expenses and credits.

So what’s your take? Do you pay your taxes?

Let me hear from you!

Teri Ann Renee Paisley

Gleaner online writer

Tags: income, pay, sel-employed, taxes