Legal Tax Issues And Start Up Flashcards
What are records?
Business documents that record all of a businesses dealings and memorandum etc
What is consumption tax?
A tax that is typically used on goods and services
What is VAT?
Value added tax is a type of consumption tax that is placed on a product whenever value has been added in a stage of production, it is paid by businesses to the government
What is income tax?
A tax you pay that is determined by your annual salary - this is paid every month to the government
What is HMRC?
Her majesty’s revenue and customs is a non ministerial department of the UK government responsible for the collection of taxes and the other financial regimes
What are NIC’s?
National insurance contributions is a British system put in place to provide for the sick, unemployed or retired. It is a system of compulsory payments made by tax payers (the public)
What are the four main areas to be aware of when starting up a business?
Business organisation
Employment
Consumer protection
Environmental protection
What is federal income tax?
A tax levied by the government based on annual income
What is payroll tax?
A tax that is paid by employers that are paid on behalf of their employees
Do luxury items have more or less tax?
More tax
Do essential items have more or less tax?
Less tax
