2.1.5 External Influences: Taxation

Question 1

Where does the government get their money from?

Answer 1

Tax: the government collects taxes from people and businesses in the uk

Question 2

Direct

Answer 2

“Collected by the inland revenues”

• Income tax
• Business & corporation tax
• Council tax
• Inheritance tax

Question 3

Indirect

Answer 3

“Collected by the customs & excise”

• VAT
• Fuel Duties
• Tobacco Duties
• Wine, Spirit, Beer Duties

Question 4

What is the 4 main types of tax?

Answer 4

• Income tax
• Corporation Tax
• Value Added Tax (VAT)
• Excise Duties

Question 5

Income tax

Answer 5

Workers pay income tax and national insurance contributions. Both of which affect workers “take home” pay

Question 6

Corporation Tax

Answer 6

Business pay corporation tax on their profits

Question 7

Value added Tax (VAT)

Answer 7

Is a tax placed on all the goods we buy expect food and children’s clothing. This is 20%

Question 8

Excise Duties

Answer 8

These are specific taxes charged on certain products eg. alcohol, tobacco and fuel

Question 9

What do the government spend their revenues on?

Answer 9

• Maintaining road repairs
• Public services
• NHS
• Schools
• Transport
• Social protection