Direct Taxes
This tax is paid to central government based on an individual’s yearly income.
What is income tax?
This tax is included in the price of goods and collected at each stage of production.
What is VAT (Value Added Tax)?
The UK government agency responsible for collecting income tax.
What is the Inland Revenue?
The taxable income if gross income is £12,000 and allowances are £4,000.
What is £8,000?
The tax levied by the local government
What are rates?
This direct tax is levied on the profits of a business organization.
What is corporation tax?
Goods like food and exports are exempt from VAT because they are this.
What is zero-rated?
This authority handles VAT, customs, and excise duties.
What is Customs and Excise?
The amount of income tax paid if taxable income is £8,000 at a 25% rate.
What is £2,000?
The tax paid annually by all road users.
What is motor vehicle tax?
The tax paid on assets of a deceased person, with a 1988 minimum threshold of £110,000.
What is inheritance tax?
A tax on imported luxury goods like electronics or tobacco.
What is customs duty?
The office that collects TV license fees and sends revenue to the government.
What is the Post Office?
The standard VAT rate in the UK in 1988.
What is 16%?
These local taxes fund services like schools, police, and parks.
What are rates?
This tax applies to profits from selling assets like property or stocks.
What is capital gains tax?
This tax is paid on exported goods like whisky or motor vehicles.
What is excise duty?
The agency in Swansea that collects motor vehicle taxes.
What is the DVLC (Driver and Vehicle Licensing Centre)?
The formula to calculate taxable income after deductions.
What is Gross Income – Allowances?
The term for taxes that increase as income rises (e.g., income tax).
What is progressive tax?
The system where employers deduct income tax from wages before paying employees.
What is Pay As You Earn (PAYE)?
Indirect taxes are called this because they disproportionately affect low-income earners.
What is regressive?
The term for taxes paid to local governments for services like schools and parks.
What are rates?
It is given to employees to indicate their allowance amount.
What is a tax code number?
The rates charge depends on this
What is a rent-earning capacity?