Advance taxation Essay Example | Topics and Well Written Essays - 500 words

Advance taxation - Essay ExampleX can also invest in political science securities by evaluating the risk of investment. If X plans to take more risk to earn higher reward, X can invest in shares. X also has the resource to give the surplus fund to Xs four children. In this case X has to evaluate tax implications on the basis of inheritance tax. In the given situation, X wants to find out the tax implications of each of these alternatives and then choose the best option to invest. Tax Implications for Set up of Business as Sole Trader It is the simplest of only employment structures. Setting up a business as a sole trader can be truly scary because Xs liability would be unlimited. But at the same time rewards are also unlimited as X leave behind scram claims to the extent of profit earned by business. Moreover, X does not have to register with the Companies House and this means that X wont have to pay the corporate tax which X had to pay had he set up an incorporated company. An other advantage for a sole trading business is that if X is not maintaining a payroll, paper works for the employees then red tapes will be reduced greatly. But this business structure exposes X to great risk for which X may need to cover up with insurance policy. Thus as a sole trader, X can keep all profit after paying taxes on them according to tax slab.