💚12 Insurance and Tax Flashcards

Question

Explain the 2Public Liability Insurance a business should have

Answer 1

Protects business if member of public is injured or his property damaged due Business’s negligence whiles hes on a business,s premises Compensation paid to mem of public

Answer 2

protects a business that manufactures or sells products to a customer that injuries him insurance company pays to customer, E.g defects, design, flaws, defective, warnings, or instructions

Answer 3

protects if employee makes a claim against ennis because he was injured or made ill at work through fault of his employer ins company pays to employee

Answer 4

under Irish law, vehicles must be insured protects if one causes, damage or injury, third-party comprehensive, third-party fire and theft

Answer 5

Pays business compensation for value of any stolen stock or items from business

Answer 6

businesses windows are damaged insurance company pays to get them fixed or replaced

Answer 7

Business Survival-Wont be ended by a catastrophe,ins company gives money to rebuild etc Risk Management- Transfer risks to ins company Improved Cash flow-Easier to pay yearly small amounta

Answer 8

1.Health Insurance 2.Life Assurance 3.House+Contents Insurance 4.Motor Insurance 5.Mortgage Protection Insurance

Answer 9

Pays private medical bills of a family member if they become sick

Answer 10

Protects ppl financially dependent on insured person. Pays the partner if insured person dies (Child, civil partner, spouse) -Whole life policy -Endowment Policy

Answer 11

protects home and its contents if destroyed, damaged or stolen

Answer 12

compulsory by law will pay for damage or injury caused by the family’s car, third-party, comprehensive, third-party fire and theft

Answer 13

if a family can’t pay mortgage due to illness, redundancy or death, the insurance company will cover it

Answer 14

compulsory motor insurance, fill-in proposal form and obey, utmost good faith. Make a claim via claim form.

Answer 15

businesses face more risks so have more insurance policies. Businesses are more valuable so have higher premiums.

Answer 16

Pays, only for a damaged/injury cause to another party

Answer 17

pays for damage/injury caused to another party and, if vehicle is stolen or burned out

Answer 18

It covers all risks included in third-party and third-party fire and theft and includes damaged caused to owners car

Answer 19

Taxation is the money that all businesses and households must pay to the government Govt uses it to pay for services etc. Minister for finance decides all taxes

Answer 20

To Raise Money -pay for govt services To Redistribute Wealth -Take money from rich, guve to poor -Progressive taxes To Discourage Consumption -Higer tax on fags and alcohol -Thats a regressive tax ^ 😢

Answer 21

Higher percent tax rate for ppl on higher wages Income tax!

Answer 22

The tax affects people on lower incomes more than those on higher incomes E.g The 8€tax on fags is a much larger % of a minimum wage person than a doctor

Answer 23

1.Wages- PAYE PRSI USC 2.VAT 3.Capital Gains Tax (CGT) 4.Capital Acquisitions Tax (CAT) 5. Deposit interest retention tax (DIRT) 6.Motor Tax

Answer 24

Pay As You Earn Employee pays income tax on her wages Employer calculates it and sends to revenue

Answer 25

Amounts that all income taxpayers can deduct from their gross income tax bill. Theyre used to reduce their income tax payable Theyre not refundable (if ur tax credits are 3k but u only have 2k in tax u dont get the extra K) Diff ppl qualify for diff tax credits (Blind, carers,)

Answer 26

Pay Related Social Insurance Tax taken out of wages by employer and paid to revenue Pay it so u can qualify for welfare benefits in future such as dental optical and medical benefits

Answer 27

Universal Social Charge Tax payable on ALL income, not just wages x. Was introduced in 2011 as a way for govt to generate extra money Employers deduct the usc percentage and send to revenue Progressive Tax!!

Answer 28

P45-When leaving job P60-End of every tax yr P21-Revenue giv to employee at end of tax year Form 12A-Start work for very first time

Answer 29

Form employer gives to employee when leaving job. Contains Gross Pay and PAYE,USC,PRSI that was deducted from the start of the year til present Employee uses it to claim social welfare benefits (sign up for dole) or to give to new employer to make sure taxes r worked out properly

Answer 30

Employer gives to employee at end of tax year Contains Gross Pay and PRSI USC PAYE deducted in that year Employee can use to claim tax refund from Revenue and as evidence that hes paid enough PRSI to claim benefits

Answer 31

Revenue gives to employee at end pf tax yr Shows difference between how much tax he paid and how much was actually owed If he overpaid tax he gets refund Of he underpaid tax he must send revenue a cheque This form is called a Balancing Statement for that reason

Answer 32

Form all employees must fill in when working for very first time Needs to be done so revenue can work out tax credits and rate of tax u shud be paying Of u dont u get charged emergency tax until u fill in the form

Answer 33

Tax that households paay when they buy products and services from a business Shopkeeper adds the vat to the price then VAT not charged on everything , education, funerals, medicine, childrens clothes are not liable to VAT This makes these essential products more affordable

Answer 34

Tax that households have to **pay on the profit they make when they sell one of their assets** Percentage of the profit, u have to **work it out urself** and pay it by a certain deadline if u dont ur liable to **interest** and **penalties** small amount of profits made each yr os tax free, this is called the **annual exemption**

Answer 35

Capital Acquisitions Tax Tax u pay on the value of a gift or inheritance youve recieved U can recieve a certain amount of gifts and inheritances tax free Married couples, civil partnership dont pay any CAT U can receive large amnts tax free from ur parents but once uve exceeded this limit all future ones are liable to tax Smaller exemption limits apply tl grandparents,uncles,aunts,brothers and sisters U have to work it out urself and pay to revenue by a certain deadline, if not.. interest and penalties

Answer 36

Deposit Interest Retention Tax Household pays on interest it earns on savings in bank or credit union Bank/CU deducts it and pays it straight to revenue for u

Answer 37

Tax imposed on motor vehicles Pay to local council each year Amount determined by cars C02 emission levels All households must display current tax disc on windscreen of car as evidence

Answer 38

1.Self Assessment Income Tax 2.Corporation Tax 3.VAT 4.Commercial Rates 5.Customs Duties 6.Employers PRSI 7.Motor Insurance

Answer 39

Income tax that **self employed** entrepreneurs **pay on their profits** (sole traders and partners in a partnership) Have to work out themselves and pay by 31 Oct of that year They also have to send in annual tax return detailing income and tax credits If pay taxes and submit tax returns online using ROS this 31 Oct deadline is extended to mid november Subject to revenue audits Any fraud theure fined and imprisioned

Answer 40

when taxpayers fail to pay the correct amount of tax by not declaring full amnt of income or by claiming tax deductions theyre not entitled to Illegal and govt has heavy penalties for guilty ppl

Answer 41

When taxpayers take advantage of rules contained in tax law to reduce the amnt of tax they owe. E.g high income earners can reduce their tax bill by investing in certain Irish films and businesses LEGAL

Answer 42

Tax that companies pay on their annual profits Irelands rate v low,attracts foreign companies Companies work it out themselves,send to Revenue, along with annual tax return detailing income and tax reductions Subject to revemue audits

Answer 43

Value Added Tax Tax businesses must add on to price of goods and services they sell They collect from consumer and send VAT straight to Revenue When a business buys goods it has to pay VAT to their supplier but it will be refunded

Answer 44

Tax businesses must pay to their local council every year Amnt paid is based on value of businesses properties and value depends on location, size and nature of business Money raised from this tax is used to finance the councils local activities (roads lights etc)

Answer 45

When business imports from non-EU country it pays tax on the value of the imports. Can be over 100%!! Goods wont ve released from customs til the tax is paid

Answer 46

Business pays this to revenue if it has employees Amount payable is equal to percentage of employees gross wages Money is NOT taken from the employee, the entrepreneur has to pay it out of his own profits

Answer 47

Every business that has a car has to pay motor tax to local council yearly Based on cars C02 emissions. Disc displayed on windshield as proof

Answer 48

1.Lower Profits -Taxes taken from businesses profits reduce money leftover for expanding business 2.Lower Sales -VAT makes products more expensive, lowering sales 3.Higher Costs -Hire accountant to do the taxes, employers PRSI is then also higher 4.Less Overtime -High taxes on income discourage employees to work overtime as govt takes over 50% of wages -Business is then short workers in busy times

Answer 49

Register w revenue when first start and fill in a form Calculate tax owed and pay on time, if u dont u have interest and penalties Tax avoidance- Can minimise amount of tax you pay LEGALLY Must keep proper tax records for at least 6 years. If claiming tax credits/deductions must have proof of elegibility

Answer 50

Businesses get more tax reductions than households (claim tax deduct on cost of buying fixed assets) Business gets VAT refunded from revenue Businesses collect taxes from others on behalf of revenue (PAYE USC PRSI) Businesses pay more taxes