2. Specification detail
Theimpact of regulation and taxation
and the benefits and drawbacks of
minimum wage, maternity/paternity rights
and health & safety regulations on
business
3. The European Union
The European Union is a group of countries
whose governments work together.
It's a bit like a club. To join you have to
agree to follow the rules and in return you
get certain benefits.
Each country has to pay money to be a
member. They mostly do this through
taxes.
The EU uses the money to change the way
people live and do business in Europe.
Countries join because they think that
they will benefit from the changes the EU
makes.
8. Health and Safety
Accidents are Expensive to
avoided implement
Increases productivity
Risk assessments are
Lowers labour turnover time consuming
Good reputation – Some staff resent the
repeat purchase changes
Reduce work related
injury
9. Maternity and Paternity Rights
Women are allowed 39weeks maternity pay
The first 6 weeks, their employer will pay the
mother 90% of their usual earnings.
After that, they receive the sum of £125 per
week.
The mother is entitled to have her job back
when she returns to work
The father can have 2 weeks paid leave after
the baby is born.
10. Taxation
Tax Explanation Impact on the Business
Corporation A business pays tax on its • Shareholders will get a lower
Tax profits (30%) dividend
• Corporations will reinvest
their profit as an expense, to
decrease their profit.
VAT (value This must be paid on This makes items more
added tax) goods and services (17.5) expensive for the consumer.
Some items, such as
children’s clothes, are
exempt
Income Tax A tax paid by employees This leads to an increase in
on their earnings. money people have to live
and spend on other products.
