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Tax is a sum that you need to pay to the government so it can fund public services, like building roads, schools, and hospitals.
There is also an additional type of tax that you pay when you spend money. This tax is called “VAT”, and it’s technically paid by the final consumer of a product or service. If you’re a sole trader registered for VAT, you collect VAT from your clients, deduct the VAT you’ve paid for eligible expenses, and then pass the VAT on to HMRC.
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