Taxes

There are three types of taxes in the UK:

1. Indirect Taxes: these are taxes that are placed on expenditure for example Value Added tax. 
2. Direct Taxes: These are taxes that are placed on your income itself such as Income Tax. 
3. Other taxes:

• Stamp Duty is placed on the purchase price of a house at varying rates. 
• Council tax is charged on each and every house in the country. 
• Inheritance tax is paid on any inheritance warned when an estate passes hands. 

Social Protection: This will include welfare payments paid to those in need. the qualification for some benefits are not automatic e.g. Job Seeker's Allowance. 

Health: Health spending is the second largest component of government expenditure. NHS gives health care freely to anyone who wants it. As UK population is ageing the need for NHS is greater.