TAXATION. Businesses are a rich source of TAX, which UAE Mobile Number Database our government needs to pay for schools, the National Health Service, roads, police, firemen, the Army, Navy and Air Force, old age pensions etc. Our politicians have great ideas on how to spend money but they have no money to spend unless businesses create TAX. There is UAE Mobile Number Database a tax called CORPORATION TAX which is charged as a percentage of the profit the business UAE Mobile Number Database makes. However businesses create tax for the government in many other ways. Everyone who gets wages or a salary from a business pays INCOME TAX and the business pay NATIONAL INSURANCE for each person working for the business. No business, no wages, no income tax.
National insurance. Businesses charge VAT (Value UAE Mobile Number Database added tax) on most things they sell They pay what they collect (less what VAT UAE Mobile Number Database they have paid to other businesses) to the government. Owners of a UAE Mobile Number Database business can take money out of the business in the form of what are called "dividends": INCOME TAX is paid as a UAE Mobile Number Database percentage of these dividends. Finally owners can sell a business to somebody else and if they do, they pay CAPITAL GAINS TAX on the sale. If a business buys insurance, it pays INSURANCE TAX.
If it buys goods from abroad, it often has UAE Mobile Number Database to pay TARIFFS to the government. Corporation Tax, Income Tax, National Insurance, Value Added Tax, Tax on Dividends, Tariffs, Capital Gains Tax all help in paying for things we value such as schools, police, defence and the National Health Service. Without these taxes the government would not have UAE Mobile Number Database enough money to pay for these things. By the way, businesses also pay COUNCIL TAX which pays for local services such as street cleaning, parks, playgrounds and many other things we UAE Mobile Number Database take for granted. Of course, businesses are not created and operated in order to pay taxes. The business is created to make money for the owners and to pay wages for the people working in the business.