In 2008-2009 total UK government receipts have been 37.3% of UK GDP. This is as same as approximately £ 10,900 for every adult or £ 8,900 per person in the UK. The big sources of revenue for the government are Income Tax, National Insurance contributions and VAT (Stuart and James, 2009). The Tax System Income Tax- The chief forms of taxable income are the earnings which come from employment, businesses, income from self employment, pensions, income from property, bank and building society interest and dividends on shares (Stuart and James, 2009). Income tax performs on the basis of a system of allowances and bands of income. Everyone has a personal allowance that is subtracted from total income for showing taxable income. Taxable income depends upon different tax rates that are supported by the band in which it falls. The increment in bands and allowances starts in April which is tax year in statutory indexation provisions. This increment is declared at the time of the annual budget. Income tax is mostly deducted through the PAYE system. The UK Income tax system is cumulative where total tax which is payable for a particular financial year is calculated on the basis of the total income of that particular financial year. The cumulative system conveys that there is no end of year adjustment to the tax paid amount. Child tax credit (CTC) does not require any employment status. It is meant for both out of work families and lower paid working parents. Working tax credit (WTC) is advantageous for working adults with and without children (Stuart and James, 2009). National Insurance Contributions: NICs works as tax on earnings. Practically contributions paid and benefits received do not have strong relation with each other for each contributor. For 2008-2009 some contributions are given to the National Health Service and the rest are paid into the National Insurance (NI) Fund (Stuart and James, 2009). Case Law on the UK Taxation System The UK taxation system has a direct connection with the domicile status of an individual, which does have far reaching implications on the financial and regulatory system. The law of domicile and the UK taxation are two separate concepts, but when the law of domicile is applied onto UK taxation, then it brings about a social difference by exposing the the tax burdens of two different individuals with identical incomes from the same sources purely on the grounds of national origin- while one individual pays less tax it is considered a social advantage, while it is unavailable to the other individual (Richard, 2007). HM Revenue and Customs is an active body of law, and involves in an indirect and unintentional way thru the process by determining a person’s domicile status, which is an indication that discrimination has its origins from a public authority. Those suffering discrimination are those from within the United Kingdom who account for almost 88% of the 60 million resident UK population. The case of illegal discrimination gives rise to two conflicting consequences viz (Richard, 2007).  1. Those who are UK domiciled must be taxed in the same manner as those who are not domiciled in the UK.  2. Non-domiciled individuals must be taxed in a