- Created by: RandomEpicness
- Created on: 05-04-21 18:20
TAXES- (generally a lot of government revenue comes from taxes, mostly income tax, and least from business tax (As of 2018) )
Direct Taxes - paid by person or organisation
- Income Tax = tax on your wages when you earn above a certain amount
- Inheritance Tax = tax on money left to you in a will
- Corporation Tax = percentage tax based on profits of business
- National Insurance contributions = form of taxation based on income, originally to fund welfare state, now fund state pensions.
- Council Tax = paid anually based on value of property you live in, collected by local authority
Indirect Taxes - paid on goods and services. Advantageous as they are cheaper to collect and penalise spending, not success.
- VAT - tax on most things you buy, currently 20%, some items VAT free e.g. kids clothes and food.
- Excise Duties - tax levied on items such as alcohol or tobacco. Discourages spending on items harmful to health (costs taxpayers money through NHS.)
HMRC (Her Majesty's Revenue and Customs) -non minesterial gov department responsible for:
- collection of taxation
- payment of some state support
- admin of some regulations such as national minimum wage
- investigating smuggling, fraud, and tax evasion as a law enforcement agency, where punishment for tax eveasion can be imprisonment.
THE CHANCELLOR OF THE EXCHEQUER
Governments chief financial minister. Key duties:
- Raising revenue through taxation or borrowing
- controlling how gov spends
- leading Treasury
- Allocating expenditure limits for all other…