Start-up Legal And Tax Issues - Unit 1

Question 1

Businesses have to follow legal requirements so that… Name at least 2.

Answer 1

• The government can keep track of business activity
• So taxes can be collected
• To protect businesses from illegal activity
• To protect customers from illegal business practises

Question 2

What is value added tax? (VAT)

Answer 2

A tax on the amount of sales of a business.

Question 3

What is income tax?

Answer 3

A tax on the income earned by workers and sole traders.

Question 4

What is corporation tax?

Answer 4

A tax paid by limited companies on the profit of the company.

Question 5

What is National Insurance Contributions (NIC)?

Answer 5

Tax on earnings of workers and sole traders linked to state benefits.