5.4c Don't blow out of proportion Flashcards
What is tax
A proportion of an individual’s income or a business’s profits that must be paid to the government
What is income tax
Individuals pay income tax from their wages. The percentage of their wages that they pay as tax depends on how much they earn
What is national insurance
Individuals pay this insurance to cover their state pensions and other benefits. Employers also pay a National Insurance contribution on behalf of their employees. As with income tax, the amount depends on how much the employee earns
What is VALUE ADDED TAX
Individuals pay VAT when they buy goods and services, as VAT is added on to the price of those products and services. VAT is also paid by businesses when they buy from their suppliers
What is Corporation Tax
Businesses pay corporation tax on any profits that they make
What is council tax
Individuals pay council to pay for services that are provided in their local community
what are business rates
Businesses pay business rates to pay for services that are provided for them locally
What are Excise duties
Individuals pay these extra taxes when they buy certain products, such as cigarettes or alcohol, because excise duties are added to the price of these products.
What are other taxes
Several other taxes are paid by individuals and businesses, such as the carrier bag levy.
What impact does high interest rate have on savers
Savers are paid more money for keeping their money in the bank, meaning that they have more to spend
