2.6.2. Fiscal Policy - Taxation (Edexcel A-Level Economics Teaching PowerPoint)

This Edexcel teaching powerpoint covers taxation.

In the UK, taxation is a compulsory contribution that citizens and businesses make to the government, in order to fund public services and government spending. The biggest sources of tax revenue in the UK are:

• Income tax: This is a tax on an individual's earnings from employment or investments, and is the single largest source of tax revenue for the government.
• Value Added Tax (VAT): This is a tax on the sale of goods and services, and is a significant source of revenue for the government.
• National Insurance Contributions (NICs): These are contributions made by employees, employers, and the self-employed, and are used to fund state benefits such as the state pension, maternity pay, and sick pay.
• Corporate tax: This is a tax on the profits of companies operating in the UK, and is a significant source of revenue for the government.