Synopsis of Module
This introduces students to the underlying principles and the application of the detailed rules of income tax, corporation tax, national insurance and VAT. The module considers the system of tax administration and the operation of the tax system as it applies to businesses.
The module is taught using a mixture of lectures and seminars. Students are expected to prepare by pre-reading and completing set activities for seminars. Formal assessment is by way of a 2 hour closed book examination.
Aims of Module
The module aims to:
| 1. | Provide students with an introduction to the principal business tax systems in the UK. |
| 2. | Provide students with a detailed knowledge of the underlying rules and principles applicable in the calculations of income tax , corporation tax, National Insurance and VAT. |
| 3. | To provide opportunities for the students to practice and demonstrate calculations of the taxes referred to above. |
Learning Outcomes
At the end of the module students will be able to:
| 1. | Determine the tax treatment of items of income and expenditure, applying the appropriate principles of specific rules. |
| 2. | Calculate the income tax and national insurance liabilities of employees, sole traders and partners. |
| 3. | Calculate the corporation tax liabilities of non-group companies. |
| 4. | Describe, discuss and comment on the operation of the UK tax system, as it affects unincorporated businesses and companies. |
Outline Syllabus
CORPORATE BUSINESS
| • | Scope of Corporation Tax |
| • | Profits chargeable to corporation tax, capital allowances, trading losses, schedule A and DIII |
| • | Calculation of the tax liability |
UNINCORPORATED BUSINESS
| • | Schedule D case I/II, badges of trade, assessable profit, basis of assessment, change of accounting date, capital allowances, trading losses, partnerships, pensions. |
| • | National insurance contributions |
EMPLOYEES
| • | Schedule E, basis of assessment, deductions, PAYE, benefits in kind, pensions |
| • | National insurance contributions |
VALUE ADDED TAX
| • | Scope, registration, administration |
| • | Zero rated and exempt supplies, tax recovery |
| • | Cash accounting and annual accounting |
| • | Default surcharge, serious misdeclaration penalty and default interest. |
Summative assessment
Assessment A: Examination - (Closed Book)
The weighting of this assessment is 100%
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