Income tax and many of its states and Switzerland, impose the higher of regular income tax or an alternative tax. Switzerland and U.S. states generally impose such tax only on corporations and base it on capital or a similar measure. Income tax is generally collected in one of two ways: through withholding of tax at source and/or through payments directly by taxpayers. Nearly all jurisdictions require those paying employees or nonresidents to withhold income tax from such payments. The amount to be withheld is a fixed percentage where the tax itself is at a fixed rate. Alternatively, the amount to be withheld
Working Tax Credit in tax credits; so the true cost is only £41. Other concessions with regard to assessment of income (in contrast to means testing used elsewhere) include: Around 7 million people in the UK are entitled to claim Working Tax Credit or the companion Child Tax Credit, although around 2 million people do not do so. The levels of Tax Credit take-up in the UK have not risen in recent years, despite an increase of 100,000 children living in households classed as "below the poverty line" between 2004 and 2005. The introduction of the Working Tax Credit scheme was marred by