22 Questions on Requirement to Pay and Submit Tax, Business Structure, Consequences, and More

22 QUESTIONS

Table of Contents
QUESTION .....................................................................................................................................1
1. Requirement to pay and submit tax. .......................................................................................1
2. Business structure....................................................................................................................1
3. Consequences..........................................................................................................................1
4. Identify....................................................................................................................................2
5. Employment legislation..........................................................................................................2
6. Health and safety legislation...................................................................................................2
7. Data protection legislation......................................................................................................2
8. Digital and copyright legislation.............................................................................................3
9 Structure of Cash flow forecast................................................................................................3
10 Completed cash flow forecast................................................................................................3
11 Assessment of cash flow........................................................................................................4
12 Differentiate...........................................................................................................................4
13 Information required..............................................................................................................4
14 Importance of invoice and receipts........................................................................................5
15 Invoice and payment receipts.................................................................................................5
16 Option of receiving and making payments............................................................................5
17 Use of Business plan .............................................................................................................6
18 Benefit of business plan.........................................................................................................6
19 Content of business plan........................................................................................................6
20 suitable contingency plan.......................................................................................................6
21 Business plan..........................................................................................................................7
22 Reflection on business plan....................................................................................................7
RESOURCES .................................................................................................................................8

QUESTION
1. Requirement to pay and submit tax.
In recent year, the amount of income tax that is paid on the profit for self employed have
the following requirement like
 Zero income tax on £0 to £12,500.
 If self employed is earning £12,501-£50,000 than 20% is paid on profit.
 On £50,001-£150,000 have to pay 40% on profit.
 In case if they earn Over £150,000 then 45% is paid on profit.
In companies, corporation tax is paid on profit which is around 19% if the gross income
is £12,501- £14,459. in order to submit tax return, companies and self employed are required to
have various requirement such as form 16, form 16A, 16B, 16C and form 26AS, Tax saving
investment proof.
2. Business structure.
In UK, a sole trader mainly notify the department of HM revenue and Customs that they
intend to start working and have to submit a business name and trading style. The HMRC
provide a UTR (Unique Tax reference) number that will be allotted after 10 working days after
requirement and registration is completed (Banac, 2015). In this a new business start-up of small
restaurant “Hungry Hustle” is discussed which is a sole trader business, thus have to follow the
specific guideline to get register with HMRC.
3. Consequences.
Tax evasion
Tax evasion is the act of unlawfully disguising IRS or other tax office profits or data. Profile
penalty is equivalent to £ 5,000 for six months in prison or a prosecution. The maximum
punishment in the UK is seven years in jail or an indefinite fine for revenue evasion.
Tax Avoidance
The average penalty in the courts of prosecutors is six months in jail or a fee of
equivalent to £ 20,000. Magistrates court trials could be a prison term of up to seven years or an
indefinite fine.
Non-compliance
The Office of the Information Commissioner (ICO) seems to have the authority to charge a
1