...tax?

Former US President Benjamin Franklin said “In this world nothing is certain but death and taxes”.

Tax that you need to look out for…

Income tax - This is the amount deducted from the money you earn through employment.

National Insurance - A bit like another form of Income Tax . This goes towards paying for things like pensions when you are older.

Value Added Tax - This is added to many items that you buy. It is usually 17.5% but for basic items such as food and books it is not added.

Capital Gains Tax - If you buy something for one price and sell it later for a higher price, you will have made a capital gain. If this gain is significant you may have to pay tax on a portion.

Stealth Taxes - These crop up in all sorts of places. For example: tax on insurance policies, airport tax, tax on alcohol, tobacco and petrol.

As you get older it is wise to remember that tax evasion is illegal but tax avoidance is perfectly acceptable.