"/> "/> Hidden costs: Volume 5. Taxes | MoneyLife

Hidden Costs: Volume 5. Taxes

Written by Richard Francis // Posted on // Found in HomeLife

No one likes paying tax, especially when it’s hidden. Whilst we are all familiar with income tax, national insurance and VAT, there are plenty of other lesser-known taxes out there which you may or may not be familiar with. Here are a few sneaky ones which often go under the radar…

Air Passenger Duty

This is a business tax that airlines pay the UK government which is in turn charged onto passengers when purchasing tickets. This ranges from as little as £13 to £468 per passenger, depending on the distance of travel and the weight of the plane.

Probate Fees

Although officially this is not a tax, many argue that it is, and is charged by the UK government in the application process for probate of land and property in the event of a death. This fee has risen to £215 per application this year.

Company Car Tax

If you have a company car and use it for personal reasons, including for commuting, you will have to pay tax. The amount you pay is calculated on the value of the company car, which considers how much it would cost to buy and the type of fuel it uses.

  • This value of the car is reduced if:
  • You only use it or have access to it part-time
  • You already contribute to company costs
  • It has low CO2 emissions
Excise Duty

This is the amount of additional tax we pay on goods including alcohol and tobacco, separate from VAT. Levels of taxation depend on the quantity or units of alcohol, whilst for tobacco, it is dependent on weight, plus an additional 16.5% of the retail price.

Insurance Premium Tax

Most policies are required to pay tax to the UK government, excluding life insurance and certain commercial operations including international exports. Two main rates apply – a standard rate of 10% and the higher threshold of 20%, most commonly applied to holiday insurance.

Fuel Duty

This is the price you pay for petrol, diesel and other vehicle fuels or for heating (excluding certain domestic fuels) on top of the VAT rate of 20%. Different rates apply to fuel types and can be up to 57.95 pence per litre.

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Written by Richard Francis // Posted on // Found in HomeLife


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