How To Pay Income Tax

How do I pay income tax?

I think most people would say that you pay income tax reluctantly but with dignity. At a level of detail, it is a bit more complicated than that. The pay as you earn system which applies to all employees and is intended to make sure that roughly the right amount of taxes collected each week or each month from payments from the employer. So for most employees, the answer is also pretty painlessly. For self employed people, the tax is payable on the 31st of January and the 31st of July. They have to complete the tax return and either assess for themselves the amount of tax due which the revenue will then check, or get the revenue to work out figures and they will get two tax demands each year which they have to settle. Some other source of income are also received after deduction of tax. Most dividends and interest have tax deducted at source so you will not need to pay extra tax on those if you are a high rate taxpayer.