• Taxes can be direct or indirect.
• Direct taxes are taxes on income such as corporation tax.
• Indirect taxes are taxes on expenditure such as VAT.

Direct Taxes in Ireland

• Income tax{PAYE}: Income tax is deducted as a percentage of income. There are two main taxes: the standard rate and the higher rate. The more a person earns, the more income tax they pay.
• Pay Related Social Insurance{PRSI}: PRSI is divided into 11 different classes. The class a person pays from their income determines the social welfare payments they are able to get. Employers also have to pay PRSI for each... (More)

Why start a business?

• Challenge: Some people will become restless working for someone else, want more of a challenge
• Profit: Setting up the business offers the chance of earning profits
• New Ideas/Inventions:
• Circumstances: People can be forced to set up their business due to unforeseeable circumstances e.g A redundant worker with a sum of money

Problems in setting up a business:

• Right Product: getting the right product that will satisfy the needs for the customer fully e.g. Value for money
• Cash Flow: new starts ups often fail because cash flow issues i.e. run out of cash
• Premises: finding the... (More)

Key Terms, Definitions and Summary

• A financial Service provider is an organisation that offers money-related services.
• The main financial service providers in Ireland are commercial banks, credit unions and An Post.
• A commercial bank is a financial institution that serves individuals and businesses.
• A current account is a non-interest account that allows the account holder to withdraw money at any time.
• A debit card allows an account holder to withdraw cash from an ATM or to transfer money electronically from their account.
• A cheque is a written instruction to the bank to pay an amount of money to... (More)