UK taxes fund the great majority of public services. Income tax, National Insurance and VAT are the largest sources of revenue. They pay for the National Health Service (the largest single area of spending), state pensions, education, defence, policing, social care, the welfare system, transport infrastructure and the running of central and local government.
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Tax is collected by HM Revenue & Customs (HMRC). Each year the Chancellor of the Exchequer presents a Budget to the House of Commons setting out tax and spending plans for the following year. Major tax changes need parliamentary approval.
You may be asked which department collects tax (HMRC), or which Cabinet minister presents the Budget (the Chancellor of the Exchequer).
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