Taxes are one of those certainties in life. Everyone has to pay for something at some point and while many have grown accustomed to paying taxes that are considered to be normal, there are many that are a bit abnormal. If you feel that the taxes you pay are a bit outrageous, have a look at some that are nothing short of weird:

Tennessee, USA

In Tennessee, USA there is a tax on illegal drugs. If you are caught buying these drugs, you can be forced to pay taxes. In fact, you have only 48 hours to report the fact that you have purchased illegal drugs and receive stamps that are to be affixed to those drugs.

The stamps serve as evidence to the state that you paid taxes on purchasing these illegal products. Of course, most who are buying drugs illegally are not going to offer this information readily and most of these taxes never get paid. Tennessee however understands that many people may be concerned about possible jail time in association with purchasing illegal drugs.

To solve this problem they do not require you to show identification in order to receive the stamps that prove you have paid taxes and it is against the law for a revenue employee to tell the authorities who you are. Even so, there have been only 79 people who have willingly paid these taxes since the law was enacted in 1990. 72,000 people were forced to pay the tax however after they were discovered and subsequently arrested for purchasing illegal drugs.

Russia

Peter the Great, Tsar of Russia, imposed many strange taxes during his tenure. He was most remembered for his taxes on beehives and drinking water but perhaps his weirdest tax was passed in 1705. Peter forced men to pay taxes for growing beards.

He felt that growing a beard and not being clean shaven was a sin and to pay for this sin, these men also had to pay taxes.

Denmark

In Denmark there is a tax on cow flatulence. That’s right. If your cow passes gas then you will be taxed, up to £100 for each cow that passes that gas. The tax was enacted after the U.N. Food and Agricultural

Organization posted a study that showed more than 18 per cent of all greenhouse gases that cause global warming are linked to cow flatulence.

They took the study even further in Denmark and showed that one single cow can emit more than four tons of flatulence in a year as opposed to an automobile that emits just 2.7 tons in a year. Many feel that the tax on cow flatulence may become quite normal in the coming years.

Your Taxes

Seeing these strange taxes may make you feel that your own taxes are not quite such an issue. While knowing that there are weirder taxes out there may not lessen the burden of paying your own every year, it may certainly give you a bit of comic relief in knowing that you are much better off than some people around the world.

This article was written by Nixon Williams, the UKs leading freelancing accountants serving freelance contractors, interim managers and consultants. Visit their website for more information about an IT contractor accountant for your business needs. 

If you struggle to get the household books to balance each month, perhaps it’s time to look at how you budget and see where you can make some savings.

Strict budgeting can really work wonders on a tight income; making the difference between staying in the black and out of debt.

Of course, there will always be times that you have to slip into your overdraft facility, but you should really try and avoid this if you can. Once you get onto the wrong side of the line, it’s much harder to get back over it than if you’d stayed in credit all along.

Some things to bear in mind:

• Check your grocery bill. You may be a loyal shopper with a particular supermarket chain, but with food prices going up, can you really afford to stay with that supermarket? Try a cheaper supermarket for a week or two. Be honest; can you really taste the difference or are you just being a supermarket snob? Changing allegiance could save you pounds per week.
• Revisit your utility suppliers. As with the supermarket, you’ve probably had the same gas and electricity supplier for a number of years. Check out the competition and see if another provider can offer you a better rate. Some providers offer a discount if you have both electricity and gas supplied by them. Similarly, check that you aren’t paying over the odds for insurance, telephone and internet connection.
• Reign in the luxuries. If you aren’t managing to meet all your expenses each month, then perhaps it’s time to suspend the gym membership and take up walking and jogging instead. Go out less often and invite people over for dinner instead – take turns and everyone will save in the long run. It might also be more fun!
• Leave credit cards at home. Putting things on credit is always a bad idea unless you can be sure you can pay the bill in full at the end of the month. Otherwise you’ll begin a losing battle against high interest rates and slip steadily into debt.

Following these suggestions should help you shave your monthly expenses, and for most households, this will be enough to make the difference and keep the books balanced. However, if you have already amassed a serious amount of debt, you may want to talk to a debt management company about the various options open to you to work clear of the debt.

Everyone is always looking for a way to save money whether their bank balance has a lot of zeroes at the end or just a few. Saving money is always smart, which is the reason so many small businesses, big businesses, and individuals try their hand at online banking. In fact, it is now rare to find a business who does not use business online banking because it provides the utmost security for their funds. Some people may be skeptical of online banking in the beginning, but it doesn’t take long at all before they realise how beneficial online banking is and how much money it saves them on a regular basis. The benefits of online banking include the obvious, such as not having to standing in line at a traditional bank and not having to rush to get to the bank before it closes. Online banks are open all day, every day, and there is always a representative ready to take a phone call or answer an email when customers need assistance. Here are the top five ways online banking saves consumers money.

No Late Fees

Online banking is a great way to ensure that your bills are paid on time and in full. This means that account holders will not have to face late charges and fees applied to their accounts by their creditors and bill collectors. Online banking allows account holders to set up their payments, the dates each payment is to be made, and to whom each payment is to be made. Account holders have the option to set up one-time payments or schedule monthly bill payments so that they never risk another late, missed, or forgotten payment and the fees that comes with it.

No Fees for Sending Cash

Wiring money is something that used to cost a bundle. It’s quick and easy to wire money to a loved one in need, but with wire services the fee can be quite hefty. Online banking allows account holders to wire money directly from their bank account to the account of another person for little to no charge. The online wire feature is quick and free, and customers can use this feature from the comfort of their own living room or office, from a hotel in a different country, or sitting on a plane using the wi-fi network on their tablet or smart phone. This can work especially well for businesses that are always transferring cash between accounts. Businesses might also want to check this out if they’re interested in open banking, which allows you to transfer money quickly and securely between accounts, helping to manage finances in an easy and efficient way.

Easy Account Access

Perhaps the best way that online banking can save account holders so much money is the fact that it is so easily accessible all over the world. Account holders can log on to their bank accounts at any time, from any country, in the middle of nowhere if need be. This means that forgotten transfers or emergency wires and even a simple balance check can be done in a matter of minutes from a mobile device or computer anywhere in the world. Traditional banks are not open 24 hours per day, which means that people traveling cannot access their accounts as easily; sometimes not at all when they are out of the country or out of town. UK banks such as regional favourite CB Online are known for their ease of access and favourable terms.

Better Interest Rates

Online banking is a great way to make more money. Traditional banks offer account holders their own interest rates for savings accounts, but online banks typically offer higher interest rates to customers. While the highest rates aren’t particularly high at the moment, online banks are still higher than traditional banks. Account holders will earn more money on the money have already have by banking online. Additionally, it’s easier to find out which online bank has the highest interest rates on savings and CD accounts simply by checking online. It makes saving easier and more profitable.

Fewer Fees

One way that banks make money is by charging their account holders fees. Online banks charge smaller fees and sometimes no fees at all to use their services. Many traditional banks charge fees to customers who use ATM machines not associated with their bank. Some charge customers to keep an account there. Some charge customers to make deposits or to withdraw more than their monthly free allowance each month. Most online banks don’t charge any fees to use their services, which can save account holders a significant amount of money each year on fees for deposits, written checks, and even ATM withdrawals.

The benefits of online banking for individuals and small and large businesses are astounding. There is no reason not to save money by banking anywhere other than online. Signing up for online banking means instant access, easy transfers, fewer fees, and instant access to a customer’s accounts from anywhere in the world, any time of day. Online banking is a smart choice for individuals and businesses who want to save money.

–CB Online

For those new to banking, the vast array of financial products on offer can be daunting. Here’s a breakdown of the main differences between current accounts and savings accounts to help you work out where the best place for your money might be.

Current accounts

In the UK current accounts, also known as bank accounts, are the most common type of account for doing day-to-day banking. Most would have one that they use for paying and receiving money. These payments may be to or from other individuals or organisations or even the individual’s other accounts like their mortgage or savings.

These are the main features of a current account:

• A debit card: to withdraw money from the account in a branch or at a cash machine (ATM) and to pay for goods at the point of sale and online;
• A cheque book:  to make payments to another individual or organisation without having to have the physical money present;
• Standing orders: to make regular payments into another person’s account;
• Direct debits: to make automatic bill payments from your account;
• Internet and telephone banking: to access and manage your account online or over the phone;
• Overdraft facility: to allow you to go overdrawn up to a certain amount, provided your bank has agreed to this in advance.

Most banks offer a standard bank account with the features above, as well as other ‘premium’ accounts with extra features and benefits, so it’s worth shopping around to find one that’s right for you.

For some customers, even the best current accounts are no good if the bank is not easy to engage with. Companies such as first direct are contactable 24 hours a day, 365 days a year and the phone is answered by a real person – not a machine – which can greatly enhance the experience of using a current account.

Whatever you choose, you need to make sure your bank account suits your lifestyle and monetary habits. Current accounts offer a range of different facilities, some of which incur charges, so to get the best value make sure you only go for the features you think you’ll use.

Savings accounts

If you have spare cash in your current account then it’s a good idea put some of it into a savings account.  A savings account or deposit account keeps your money separate from your current account and pays you a rate of interest on the amount held.

There are many different types of savings account on offer: the main differences between them are how quickly you can access your money, the amount you need to deposit to open the account and what rate of interest they pay.

These are the main types of savings accounts to choose from:

1)     Tax-free savings: 

Interest earned in normal savings accounts is subject to UK Income tax. Whereas interest earned in cash ISAs (or Individual Savings Accounts) is tax-free on deposits up to £5,640 each year. If you’re a UK taxpayer, it makes sense to open an ISA first over any other type of savings account.

2)     Regular savings:

With these accounts, you arrange to deposit a set amount every month for a fixed period and at the end of that period (usually a year) you receive a lump sum in your current or easy access account. If you’re saving for short term goal, like a wedding or a holiday, a regular savings account could be ideal as it gets you in to the habit of saving frequently and you’re unlikely to be able to get at your savings to spend them before the end of the term without a penalty.

3)     Easy access savings:

These are savings accounts that allow you to withdraw your money more freely than regular savings accounts, usually with cash cards or online banking.   They are a good place to keep ‘rainy day’ funds as you can quickly access to your savings at short notice.

4)     Fixed term savings:

These accounts offer a fixed interest rate on your cash for a set period of time, usually 2 to 5 years.  Interest rates can be higher on these products but this means that access to your money is restricted during this period.  There is normally a penalty to pay if you need to access your money during the term.  Also, a large deposit can often be required to open this type of account, which rules them out for beginner savers and those without large savings balances.

Choosing the right savings account is really a case of deciding how quickly you think you might need to get access to your money and how much you want to deposit.  Once you’ve decided that, it’s just a matter of shopping around for the best rates.

 

For more on different types of current and savings accounts, visit direct.gov.uk