Re:Killing TurboTax
by alexchamberlain on Thursday March 04, 2021 @02:03AM
(#26339496)
You can eliminate tax returns for most people by getting their employer to do it for them, which is effectively how the UK PAYE system works. Only those paid more than 100k, the self employed or others who want to claim certain tax incentives have to file what's known as a self assessment.
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In the US our employers also submit our taxes to the govt. But because they don’t have enough information about our lives (mortgage payments, donations, savings incentives) they send the wrong amount. In April we “file our tax return” and pay/have returned the difference.
Re:Killing TurboTax
by alexchamberlain on Thursday March 04, 2021 @07:59AM
(#26341760)
Interesting. Mortgage payments wouldn't attract tax relief in the UK, and everything else has a nil rate band, so only those with large savings have to declare. Charity donations are dealt with through a scheme called Gift Aid - essentially, the charity claims the tax back.