BT - Introduction to Business Entities

Question 1

Different Types of Business

The 3 Main Business Entities are:

Answer 1

• Sole Traders;
• Partnerships;
• Companies.

Question 2

The Taxation of Sole Traders and Partners

Sole Traders and Partners are Subject to the Following Taxes:

Answer 2

• Income Tax;
• Capital Gains Tax;
• Class 4 NICs.

(Taxed as Individuals)

Question 3

The Taxation of Companies

Companies are Subject to the Following Taxes:

Answer 3

• Corporation Tax on Income/Gains;
• NICs on Payments/Benefits to Employees.