Introduction to Business Tax Flashcards
1
Q
What is a company?
A
Legal entity separate from owners and managers.
2
Q
Who are the owners of a company?
A
Shareholders that are entitled to dividends.
3
Q
Who are the managers of a company?
A
Directors that are taxed on salaries.
4
Q
How is a company taxed?
A
A compant is taxed on any profits or gains, this is called Corporation Tax.
5
Q
What is a Sole Trader?
A
An individual setting up an unincorporated company. A sole trader is not a separate legal entity.
6
Q
How is a sole trader taxed?
A
Trading profits are business tax, personal income is personal tax. Gains on disposal of business assets are business tax disposal of other assets are personal tax.
7
Q
What is a partnership?
A
A collection of sole traders working together, unincorporated business.
