29 June 2009

Taxes

This is one country that really LOVES their taxes. As military, we are exempt from paying UK Federal taxes and Council Tax (what you would normally pay if you rent or own a house here). However, you still have to pay these taxes...

  • Road Tax - You pay this once a year to be able to drive your car. If you don't pay it, it's BAD NEWS. They can tow your car, and if it's delinquent enough, they can keep your car.
  • VAT (Value Added Tax) - like a sales tax, however, it's already been added in to the price. So, when you go in a store and an item costs £7.55, you go to the till (register) and pay exactly £7.55. For large purchases on the economy (like furniture), you can go to the VAT office on base and get a VAT-Free voucher. Meaning, the furniture store will take the 17.5% VAT off your purchase and you save money!
  • TV Tax - If you own a TV and that TV can be plugged in and turned on, then you MUST pay TV tax. Whether or not you watch that TV doesn't matter. You have to pay the tax.

The good news is that the Air Force will reimburse your Road Tax for one vehicle. And, if you pay your TV Tax yearly instead of quarterly, then the Air Force will reimburse you for that, too! So, not too terrible!

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