The economy of United Kingdom

The United Kingdom has a highly developed and globalized economy that is the sixth-largest in the world. It is one of the most prosperous economies in the world, with a GDP per capita of $42,890 in 2019. The UK is a major center for international trade and investment, and is home to a large number of multinational corporations. The UK is a member of the European Union, and is part of the single market.

The UK has a diverse and highly developed service sector, which accounts for around 79% of GDP. This includes banking and finance, insurance, professional services, and business services. The UK also has a strong manufacturing sector, which accounts for around 10% of GDP. This includes the automotive, aerospace, pharmaceutical, and defense industries.

The UK is a major exporter of goods and services, and is the fifth-largest exporter in the world. The UK is also a major importer of goods and services, and is the sixth-largest importer in the world. 

The UK has a strong currency, the British pound, which is one of the most traded currencies in the world.

How does United Kingdom regulate financial markets?

The United Kingdom regulates financial markets through the Financial Conduct Authority (FCA). The FCA is responsible for regulating the conduct of financial services firms, including banks, investment firms, insurers, and financial advisers. It sets standards for the conduct of financial services firms, monitors their compliance with those standards, and takes action against firms that do not comply. The FCA also provides guidance to firms on how to meet its standards and works to ensure that markets are fair, transparent, and efficient. Additionally, the FCA works with other regulatory bodies, such as the Bank of England and the Prudential Regulation Authority, to ensure that the UK’s financial system is safe and sound.

How to register a company in United Kingdom?

1. Choose a business structure: Before registering your business, you must decide on the type of business structure you want to use. The most common structures in the UK are sole trader, limited company, partnership and limited liability partnership. 

2. Choose a business name: You must choose a unique name for your business. This name must not be the same as or too similar to an existing business name. 

3. Register with Companies House: You must register your business with Companies House. This is the government agency responsible for registering companies in the UK. 

4. Register for taxes: You must register your business for taxes with HM Revenue & Customs (HMRC). This includes registering for Corporation Tax and Value Added Tax (VAT). 

5. Set up a business bank account: You must set up a business bank account for your company. This will help you to keep your personal and business finances separate. 

6. Apply for permits and licenses: Depending on the type of business you are running, you may need to apply for permits or licenses from your local authority. 

7. Comply with other legal requirements: Depending on the type of business you are running, you may need to comply with other legal requirements such as health and safety regulations.

Taxation in United Kingdom

Taxation in the United Kingdom is a complex system which taxes income, capital gains, inheritance, value added, goods and services, and other financial transactions.

Income Tax

Income tax is the main source of government revenue in the UK. It is a progressive tax, meaning that the more you earn, the higher rate of tax you pay. In the 2020/21 tax year, the basic rate of income tax is 20%, the higher rate is 40%, and the additional rate is 45%.

Capital Gains Tax

Capital gains tax is a tax on the profit made from selling or disposing of an asset. The rate of capital gains tax is 10% or 20%, depending on the amount of taxable income you have.

Inheritance Tax

Inheritance tax is a tax on the value of assets that are passed on to beneficiaries when someone dies. The rate of inheritance tax is 40%.

Value Added Tax Value added tax (VAT) is a tax on goods and services. The standard rate of VAT is 20%.

Goods and Services Tax

Goods and services tax (GST) is a tax on the supply of goods and services. The standard rate of GST is 20%.

Other Taxes

In addition to the taxes mentioned above, there are other taxes in the UK, such as stamp duty, corporation tax, and environmental taxes.