Unit 1 Topic 1.4.4

Must learn: the legal requirements of setting up a business

Should learn: the types of taxation businesses must pay

Could learn: the importance of keeping records

Reasons for starting up a

business?

List as many

different types of

taxes you can think of.

Corporation Tax

VAT (Value Added Tax) is a tax that you pay when you buy goods and services in the EU (European Union), including the UK. If you have to pay VAT on something, it will normally be included in the price you see.

Work out the VAT on these items if VAT is 20%:

Car exhaust costing £49 Car Hire costing £175 Carton of cigarettes at £32 Wooden floor costing £499

Now...Calculate

20,000 tax

You must put together a short presentation on the main types of tax a small business may need to pay including:

1.VAT2.Income Tax3.National Insurance Tax4.Corporation Tax

In your groups, prioritise the use of Tax – you must be able to FULLY JUSTIFY your answer

Income from taxes is used to fund various things such as:

Healthcare Education Defence (military) International Aid Environmental protection Disaster relief Ministers expenses & bonuses Transport Crime

Research the different types of taxes paid by businesses and the percentages of tax paid on average by businesses.

Look on this website:- http://www.hmrc.gov.uk/