this post was submitted on 01 May 2025
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This whole yearly tax thing seems like so much unnecessary work to me. Here in the UK we have a "pay as you earn" system. Taxes get deducted from your wage automatically every time you get paid and it's all recorded. No extra steps needed. You only need to do extra reporting if you have significant income from other sources e.g. owning a business and getting dividends.
oh, it's not either/or, we have both. SO FUN!
That's how I suppose it works in every country.
The thing is that many people have other sources of income that are not paychecks. Thus why most people need to do this yearly declarations. But it is true that in any modern country this declarations are pre-made by tax agencies and it's easier to fill.
And there's also deductions. In many countries people can get tax deductions by many reasons and in most places you need to manually ask for them and fill the requirements.
Here for instance we can deduct money paid to Unions from our taxes. As political and syndicate afiliation is protected by law those payments are not automatically reported to the tax agency so if you paid them you have to manually fill the tax return.
I doubt there's a country that doesn't take deductions for tax on every paycheque. And it's usually slightly more than you end up owing at the end of the year so they get to use it for half a year.
Doing taxes is basically to get that back, especially if you take advantage of things like retirement savings plans outside of work, or charitable donations that get written off.