Setting up and running a business can be a daunting prospect. There are many decisions to be made e.g. what goods and/or services to produce, where to set up, how to advertise, what prices to charge, how to raise finance. There is also important paperwork to master and maintain. Fortunately, new business owners are not left to do all this alone. Several bodies can provide helpful support and guidance. This Case Study shows how the Inland Revenue/Customs & Excise help businesses in understanding and receiving what they are entitled to, together with understanding and paying what they owe.
Businesses make key contributions to the economy through the products they supply and the taxes they pay. Tax revenues paid by businesses, as well as the personal taxes we all pay, help to fund the economy's public sector. These revenues help to pay for essential services from which we all benefit directly or indirectly e.g. schools, police, medical services, well maintained roads and street lighting.
In addition to collecting taxes, the Inland Revenue/makes some payments to sections of the general public e.g. through tax credits. A good example of a tax credit is the Working Tax Credit, which supports working people on low income by topping up their earnings (a form of reverse tax).
A main aim of government is to stimulate the economy by helping businesses to grow, because this growth creates more jobs and generates additional tax revenues that the government can use to finance its own expenditure programme.