Topic 2 - Extras Flashcards
1) Define direct tax
2) Define indirect tax
1) Tax that is paid by a business or individual directly to the government.
2) Levied on spending or use of a service and is paid to HMRC by the provider
What is Income Tax?
Levied on income received from employment, self employment, investments and renting property.
What is National Insurance Contribution ?
It is an additional tax on employment or self employment income. it was levied to provide certain state benefits such as state pension but in the recent years has become a more general tax.
What is Capital Gains Tax?
Is payable on gains (profit) made by UK tax residents on the disposal of certain assets, including shares, most investment products and property other than the owners home.
What is Inheritance Tax?
Is payable on the value of an individuals estate when they die. it can also arise when gifts to certain trusts are made during an individual’s lifetime.
What is Corporation tax?
Is when limited companies pay tax on their profits. it is also payable by clubs, societies, trade associations and housing associations and cooperatives.
What is State bereavement benefits?
A benefit that may be payable to a spouse or a civil partner if their partner dies. Subject to meeting criteria. Survivors under the state pension age can receive payments in the form of a modest lump sum and monthly payments for 18 months.
What is sickness and disability benefits?
A benefit available to those who are unable to work for medical reasons and those who suffer from medical conditions and require financial assistance.
What is Statutory sick pay?
- SSP is paid at a fixed rate to employees by employers who are off work due to a sickness or disability for four days or more.
- Certain criteria relating to earnings and NICs have to be met.
- It is a statutory obligation and is payable for up to 28 weeks.
What is employment and support allowance?
- It is an allowance available to those under the state pension age who is self employed or unemployed and suffering from an illness or disability that prevents them from working.
- This benefit is NIC dependant.
What is Attendance allowance?
- A tax free benefit for people who need help with personal care and/or need help getting around as a result of a sickness or disability.
- Only for people who have reached state pension age.
What is personal independence payment ?
- PIP is a tax free benefit for people who need help with personal care and/or getting around. It can only be received by people whose disability began before age 65.
- Not NICs dependant or means tested.
What is carers allowance?
- It is a flat rate benefit for individuals aged 16 or over who care for a disabled person for at least 35 hours a week, earn below a specified amount, and whose care recipients receive certain disability benefits.
- Not dependant on NIC or means tested.
- Possible additional payments for partner or dependant child.
What is Statutory maternity pay?
Its is a statutory weekly taxable payment fromm the employer to the employee for a total of 39 weeks during their maternity leave. Certain criteria must be met in order to receive payment.
What is maternity allowance?
- It is available to some pregnant woman who are not able to claim SMP. This includes those who are self employed or who recently changed jobs.
- It is payed by the department for work and pensions and is not taxable
- Certain restrictions apply on who can claim
What is statutory paternity pay?
SSP is paid at the same flat rate as SMP for one or two weeks. it is available to the partner of the childls biological mother or to the adoptive parent of an adopted child.
What is statutory shared parental pay?
Statutory shared parental pay allows a couple to allocate the equivalent of 37 weeks SMP entitlement between them (the father is already entitled to two weeks of SPP) As they wish, providing both partners meet certain income criteria.
What is jobseekers allowance?
- JSA is a taxable benefit for those aged 18 and above who are unemployed or working less than 16 hours a week and are actively seeking work
- It is NIC dependant and is paid at fix rate for those aged 25 and over and a lower rate is paid to those under the age of 25.
What is Universal credit ?
A means tested benefit for working age people on a low income, introduced in 2013 to replace six “legacy” benefits. The transition to UC will be completed by 2024. Unemployed claimants must commit to job seeking unless exempt due to personal circumstances, with penalties for non compliance. carers and single parents with children under the age of one, and those with limited work capacity are not required to seek work.
What is benefit cap?
Benefit cap limits the total amount of state benefits an individual or family can receive. It applies to those between 16 and state pension age. If their benefits are above the cap, their universal credit or housing benefits are reduced to bring their benefits within it
What is State pension?
- State pension is a regular payment from the government most people can claim when they reach state pension age. Not everyone gets the same amount. How much you get depends on your NIC record.
- It first appeared after world war 2
- State pension age will increase to 67 between 2026 and 2028 and to 68 by 2046
Name the 6 global co-operations
- The financial stability board
- The international organisation of securities commission.
- The international association of insurance supervisors
- Financial action task force
- The organisation for economic co-operations and development
- The international monetary fund
What does The financial stability board do?
They promote financial stability internationally. It does this by co-ordinating national financial authorities and international standard setting bodies as they work towards developing strong regulatory.
What does the The international organisation of securities commission do?
They implement and promote adherence to internationally recognised standards for securities regulation.
