Op, you need to look into this a lot more - your calculations are wildly out.
(Original post by Elipsis)
I don't think they will be willing to help me start up this business. It's basically just selling legal highs... I was under the impression corporation tax was higher than 21-28%. How do they justify taxing the businesses profits and then taxing wages? 99p in a £ must go through the treasury.
You've listed as overlapping taxes which do not overlap. Most importantly, wages and profits do not overlap. If your company makes £10,000 and pays you £10,000 as a wage, it won't be making any profit.
Corporation tax is levied on company profits. You do not pay this tax unless you actually incorporate a company - just running a "business" does not trigger this tax. This has all sorts of advantages and disadvantages: the company is a completely seperate legal entity, even if you own all the shares.
If you do incorporate, corporation tax does not overlap with National Insurance - NI is charged on wages. Wages are taken out of the equation before profits are calculated. If your company makes £10,000 in a year, and you pay yourself a salary £10,000; the company has not made any profit and so there is no corporation tax. If you keep the profit in the company and instead declare a dividend of £10,000 on your shares; you will pay corporation tax but you won't pay NI, and will pay less income tax than if you took the money as a salary.
If you don't incorporate, you will pay income tax, VAT and import tax.
As the above poster pointed out, some of your figures are wildly out.