1. The impact of
government
and the EU

2. Specification detail
 The impact 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.

7. Minimum wage

9. Health and Safety
 Accidents are
avoided
 Increases productivity
 Lowers labour turnover
 Good reputation –
repeat purchase
 Reduce work related
injury
 Expensive to
implement
 Risk assessments are
time consuming
 Some staff resent the
changes

10. 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.

11. Taxation
Tax Explanation Impact on the Business
Corporation
Tax
A business pays tax on its
profits (30%)
• Shareholders will get a lower
dividend
• Corporations will reinvest
their profit as an expense, to
decrease their profit.
VAT (value
added tax)
This must be paid on
goods and services (17.5)
Some items, such as
children’s clothes, are
exempt
This makes items more
expensive for the consumer.
Income Tax A tax paid by employees
on their earnings.
This leads to an increase in
money people have to live
and spend on other products.

12. Video Games
 Question 5: Here