Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Advance Critical Writing: Tax Exemption

tag 250 Download7 Pages 1,530 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT
Question: Should government grant 1 year tax free for the first time bussiness owners. Discuss?   Answer: Introduction: The British government has been emphasizing the startup programmes in the upcoming years. This is initiated to pave the path for entrepreneurs as they want to get a foothold in the business world by participating in a wide variety of schemes and programmes. So when one becomes a small business owner, it is their responsibility to make tax payments which they didn’t make during the time of their employment. The profits from any business activity create a center of attention for the tax payments. In this regard the type of the taxes relies on the nature of the business and the revenues of the business (Cordes, Ebel and Gravelle, 2005). Every business in the UK is liable to make either income tax payment or the Corporation tax payments on their net profits. If the business is a sole proprietorship or partnership then the net profits forms the taxable personal income through which income tax payments must be made. If the business is a registered company then the net profit becomes accountable for corporation tax. There is also the Value Added Tax (VAT) on the sale of goods and services and also the National Insurance Contributions. It is also necessary to note that all those businesses that export or import from outside the European Union are also liable to pay duty. The focus of the essay is to argue whether the government should remove tax on the first business owners for the first year of their business operations. Should government grant 1 year tax free for the first time bussiness owners: It has been argued by Robert J. Gordon that the first time business owners or the entrepreneurs should be exempted from the taxation scheme at least for the first year of their business operations. This is because the small business startups already have a plenty of factors that they need to consider for their business operations for the first time. The first business owners have to lease space, establish connection with the suppliers, appoint workers and apply for different kinds of licenses and permits, so paying taxes above all these arrangements are unwelcomed and pose to be an unnecessary burden for the entrepreneurs (Fishkind and Kautz, 2001). So it is advisable for the government to waive tax for the first as the revenues tend to uncertain and low. Tax exemption is the monetary exemption which provides a relief from the taxable income. In this case, the type of tax exemption that is argued for is the removal of tax on a certain section of the society which is the first time business owners. Adam Smith assumed that the numerous exemptions tend to suppress the efficiency of the consumption taxes. Smith also opposed the tax exemptions for specific regions and industries. The segregation of the business as a start up business and thus initiate a tax free environment for them is something that Smith has never followed. The theories of taxation by Smith followed the simple principle that the taxes must be levied for supporting the limited government and therefore the taxation system must satisfy equity, transparency, convenience and efficiency (, 2015). Much has been changed due to the increase in the start up business and entrepreneurs in the UK. The startup business highly depends on the private investment so the government must make the commencement of business conducive for the investors. The investors fund ideas and restraint caused due to taxation may perish those ideas. Thus, it is suggest by the economists and the financial analysts that the first time business owners must operate in a tax free environment at least for the first year (Blazek, 2004). This system is evident from the Singapore tax exemption scheme. This type of exemption attempts to encourage the new business and provides a stimulus for the entrepreneurs within the commercial environment which are challenging in most of the times (Kim, 2014). According to the Internal Revenue Service, the underlying principle of this system is to ascertain that the people who don’t have employers denying taxes for them are making payments for their fair share of taxes for the purpose of social security and medicare. Thus, the argument for tax payments might seem sensible for the case of established business owners but for the startups the huge taxes does not make any sense (O'Connor and O'Connor, 2009).   The new businesses have erratic cash flows and they are not able to predict their share of revenue after three months of their business operations. The more crucial problems lie in the fact that many business owners would be left with no cash after starting the business to make the estimated tax payments. The problem that occurs through the proposed tax system of the IRS is that they want the business owners to calculate their quarterly taxes on their entire yearly income and not on the quarterly income. This has been an erroneous method as some business may be subject to underpayment penalties and others may have overpaid (Poterba and Verdugo, 2011). The tax expert Keith Hall of the National Association for the Self Employed (NASE) depicted the quarterly payments to be the most misunderstood,

Getting nightmare regarding pending chemistry assignment? Then it is high time you consider hiring chemistry assignment help service of We at deliver quality subject specific assistance on more than 100+ subjects. For us, students' need is foremost, and we work round the clock to offer science, humanities and commerce assignment help. Among Commerce wing, our one of the most popular services is capital budgeting assignment help. In science segment, we have gained popularity with biology assignment help.

Most Downloaded Sample Of Management

Toulin Method Of Argumentation

Download : 279 | Page : 1

You are required to write a researched argument essay that convinces persuades the reader of your position / stance. This is an academic, researched and referenced document that demonstrates your understanding of the objectives of the course. The structure of the argument will follow the TOULMIN METHOD of argumentation.

Read More arrow Tags: Australia Arlington Management University of New South Wales 

Consumer Behavior Assignment

Download : 208 | Pages : 9

Executive Summary The purpose of this report is to elaborate the factors which are considered by individuals before selecting an occupation. Choosing an occupation is indeed a major decision of everyone’s life and it does give a shape to where he would be heading in the course if time. The report begins with a list of various occupations which have been going since the human civilization started though it has indeed changed its form to...

Read More arrow Tags: Australia Arlington Management University of New South Wales 

Internet Marketing Plan For River Island

Download : 369 | Pages : 13

Introduction With the increase enhancement in the field of technology, it has been considered essential by the businesses to implement such technology in their business processes. Further, the increasing demand from the customers regarding the better quality of products and services delivered to their doorstep has also necessitated for the businesses to implement the e-business strategy in their business processes. E-business which is common...

Read More arrow Tags: Australia Arlington Management University of New South Wales 

Strategic Role Of HR In Mergers & Acquisitions

Download : 330 | Pages : 9

Executive Summary In a merger & acquisition, role of an HR has emerged as a very critical function. At each stage of merger and acquisition process, HR plays a strategic role. The importance of role of HR part in integration of the merged companies should not be taken lightly and should be handled very carefully and with due planning. At pre acquisition stage, due diligence should be taken before the start of the process and HR must carve ou...

Read More arrow Tags: Australia Arlington Management University of New South Wales 

Relationship Between Knowledge Management, Organization Learning And HRM

Download : 360 | Pages : 7

Introduction In this competitive business environment where every business organization is trying to attract the customers of each other, it becomes essential for these organizations to remain competitive by innovating new ideas and thoughts, so that value added products and services can be provided to the customers. The motive of such organization in providing value added services to their customers, require their employees to be quite effect...

Read More arrow Tags: Australia Arlington Management University of New South Wales 
Free plagiarism check online Free plagiarism check online on mobile
Have any Query?