Originally Posted by
rpenmanparker
In the USA there is no such thing as the correct rate of tax. No two tax preparers ever get the same result. Never, ever. So it all becomes negotiable. We tell the government what we think we should pay according to some really confusing guidelines. Then about 99% of the time they just accept it. But, oh boy, you don't want to get caught in that other 1%.
That just sounds nasty. Here there are 4 tax rates for individuals depending on income level. One for companies and one for Trusts. If your only income is from salary and or wages with PAYE deducted then there are no deductions that can be claimed. If you have passive income as well such as interest from bank deposits or dividend income then it will have tax deducted at source as well and there are very few deductions allowed (interest on loans borrowed to make the investment is about it).
It does get more complicated when you self-employed either in your own name, in a partnership, or operating through a company structure.