Start-up legal and tax issues Pg 100-103. Starter activity. Sole trader and partnerships worksheet There are three sections –A, B and C All of you must complete section A without looking at your textbook
How well you did
0-6 marks try again as homework
7-15 Getting there but use your notes and textbook as a guide
16-24 Good work
Every employer has a number of legal responsibilities. They must carefully consider laws relating to:
The list is not-exhaustive!
Key consumer protection agencies include:
Businesses also have a responsibility to the environment.
Example of Laws include:
Use your own subject knowledge
Ask a friend (no more than two gaps)
Refer to your text book as a last resort
The taxes that businesses will have to pay depend on:
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In the UK, In the UK there are 3 rates:
You pay VAT on most goods and services in the UK at the standard rate, which is 20 per cent.
2. Reduced rate
In some cases, for example children's car seats and domestic fuel or power, you pay a reduced rate of 5 per cent.
There are some goods on which you don't pay any VAT, like: Food,
books, newspapers and magazines , young children's clothing and footwear, special exempt items - for example equipment for disabled people.
Would you like to know how much you would earn after tax and other deductions are made from your salary?
Businesses have to pay different types of NICs.
A company with employees is responsible for 2 types of NICs:
1. Firstly, they deducts NICs from employee salaries and pass them to HMR&C.
2. Secondly it must pay EMPLOYERS CONTRIBUTION (THIS IS CALCULATED AS A PORPORTION OF THE EMPLOYEES WAGES)
Sole traders: Have to pay a FLAT RATE NIC plus a % of NET earnings
Income from taxes is used to fund various things such as:
TASK: In your groups, prioritise the use of Tax – you must be able to FULLY JUSTIFY your answer
How does this relate to the legal and tax issues faced by new businesses?