UK Tax System – Tax practitioner, Corporation Tax for UK Companies

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COLLEGE OF BANKING AND FINANCIAL STUDIES DEPARTMENT OF PROFESSIONAL STUDIES Assignment front sheet Assignment - 1 Qualification Unit number and title Pearson BTEC Level 5 HND Diploma Business Unit 12: Taxation Semester Batch IV(Four) Fall 2016-17 Student name Assessor name Ms. Sujata Suresh Student No. Internal Verifier (IV) name Ms. Sujatha Bhat Date issued Completion date Submitted on Sep-Oct 2016 Assignment title Learning Outcome Learning outcome LO1 Understand the duties and responsibilities of the tax practitioner in the UK tax environment LO3 Be able to calculate corporation tax liabilities for companies UK Tax System – Tax practitioner, Corporation Tax for UK Companies Assessment Criteria In this assessment you will have the opportunity to present evidence that shows you are able to: Task Evidence no. (Page no) 1.1 Describe the UK tax environment 1 1.2 Analyse the role and responsibilities of the tax practitioner 2 1.3 explain the tax obligation of tax payers or their agents and the implications of noncompliance 3 3.1 calculate chargeable profits 4 3.2 3.3 Calculate the tax liabilities and due payment date Explain how income tax deductions are dealt with. 5 6 Learner declaration I certify that the work submitted for this assignment is my own and research sources are fully acknowledged. Student signature: Page 1 of 10 Date: Tax/Assignment /Fall 2016/17/CBFS In addition to the above PASS criteria, this assignment gives you the opportunity to submit evidence in order to achieve the following MERIT and DISTINCTION grades Grade Descriptor Indicative characteristic/s Contextualisation M1 Identify and apply strategies to find appropriate solutions Effective judgements have been To achieve M1, you will have to have an effective judgement in giving your made. answer.(Task3.1) M2 Select / design and apply appropriate methods / techniques A range of sources of information has been used M3 Present and communicate appropriate findings D1 Use critical reflection to evaluate own work and justify valid conclusions D2 Take responsibility for managing and organising activities D3 Demonstrate convergent /lateral / creative thinking Page 2 of 10 To achieve M2 , you should have used different sources to collect data and a range of source of information should have been used for information relating to the (Task1.3),(Task3.3) 1. the appropriate structure and approach has been used coherent, logical development of principles/ concepts for the intended audience 2. a range of methods of presentation have been used and technical language has been accurately used 1. Conclusions have been arrived at through synthesis of ideas and have been justified To achieve M3, you should have used an appropriate structure and approach in presenting the types of taxation in UK, and put your findings in a tabular form or in a flow chart with proper explanation(Task1.1) ,( Task 1.2),(Task3.2) a range of methods of presentation should have been used with technical tax language (Task1.1) ,( Task 1.2),(Task3.2). To achieve D1, you should justify the conclusions drawn on the basis of relevant rules and formulas and its application. (Task3.1) To achieve D2, you should have demonstrated autonomy and independence by bringing details in answering (Task1.1) ,(Task3.3) Autonomy/independence has been demonstrated convergent and lateral thinking have been applied To achieve D3, Presentation and calculation has to be perfect with proper referencing and without any error. All parts of question should be attempted in full. Tax/Assignment /Fall 2016/17/CBFS Assignment Brief Purpose of this assignment Understand the UK Tax environment and the duties and responsibilities of the tax practitioner. Students should also know about corporation tax liability of relevant entities. The knowledge gained should help the student in Self-Assessment and also help in filing returns for their company. LO -1- Understand the duties and responsibilities of the tax practitioner in UK tax environment “Scenario ‘A’ Covers LO 1.1, L O 1.2 and LO 1.3 The Finance Budget 2016-17 was a budget which was looked upon with great expectation .It was a budget which investors were looking for. Simple Co is one of the leading, established tax practitioners of the city and you are one of the partners of Simple Co. Simple Co has captured the market reputation by its independent ethical policies , excellent tax planning guidance and loyalty to its clients. You have been approached by various clients both new and old to brief them about the UK Tax Environment and the stringent policies of non -adherence. 1.1 Task 1 (LO1- AC 1.1 ) Describe the UK tax environment P, M3,D2 Required:As a tax practicing expert, you are required to describe in detail the UK tax environment to your clients, so that they get an overall picture of the operating system which will help your clients to get an idea about the UK Tax environment. To achieve P, you are required to explain the meaning of taxation, types of taxation, methods of tax collection and tax legislation of UK. To achieve M3, you should have used an appropriate structure and approach in presenting the types of taxation in UK, and put your findings in a tabular form or in a flow chart with proper explanation. To achieve D2, you should have demonstrated autonomy and independence in describing the overall taxation system in your own way of presentation by doing an independent search. You should have met the deadline to submit the tasks to achieve the unit assessment criteria by taking responsibility in managing and organising activities. 1.2 Task 2 (LO1- AC 1.2 ) Analyse the role and responsibilities of the tax practitioner P,M3 Required:As a partner of a Simple Co., knowledge your clients the role and responsibilities of the tax practitioner towards their clients and HMRC. To achieve P, you are required to explain how the tax payer deals with HMRC explaining his role and responsibilities as a tax practitioner. To achieve M3, you should have used a range of source of information in the assignment relating to the above task. Page 3 of 10 Tax/Assignment /Fall 2016/17/CBFS 1.3 Task 3 (LO1- AC 1.3 ) Explain the tax obligation of tax payers or their agents and the implications of non-compliance P,M2 Required:To bring to the knowledge of your clients, the tax obligation of tax payers or their agents and the implications of non-compliance. To achieve P, you are required to advice the clients on tax planning by explaining the tax obligations of tax payers and the implications of non- compliance. To achieve M2, a range of sources of information should have been used to explain clearly the obligations .In addition to the above , as a practitioner brief on the Self -assessment procedure, maintaining of records and penalty if not complied by the tax payer. LO -3- Be able to calculate corporation tax liabilities for companies. “Scenario ‘B’ Covers LO 3.1, L O 3.2 and LO 3.3 Crowne Ltd, a UK registered company has diversified its operations since the last financial year . Its profits have increased three fold and the company is under pressure from the auditors as they feel the tax returns may go inaccurate. Crowne Ltd has appointed Pearl Co. as their tax consultants. You are one of the lead team member of Pearl Co. As a leader of the team, you work on the tax calculation and advice Crowne Ltd on filing of returns, maintenance of books of records and also advice Crowne Ltd on adherence of tax payment rules and regulation for the year 2016-17. Page 4 of 10 Tax/Assignment /Fall 2016/17/CBFS You are given the accounts of Crowne Ltd for the year to 31 March 2017. £ £ Sales 4000,000 Less: Cost of Sales 600,000 Gross Profit 3400000 Add: Other income: Profit on sale of asset 1,000 Interest received 2,200 Rental income 8,000 Dividend received 4,500 3415700 Less: expenses: Salary and wages 50,000 Maintenance 3,000 Water bill 1,000 Telephone Expenses 2,500 Motor Car Expenses 6,500 Heating 6000 Depreciation 5,000 Advertisement 6,000 Subscription 3,000 Entertainment expenses 4,700 Donation 900 Legal and professional charges 600 General Expenses 3,200 Directors’ fees 5,000 Audit fees NET PROFIT Page 5 of 10 2000 99400 3316300 Tax/Assignment /Fall 2016/17/CBFS Notes: a) b) The amount of £ 3,000 for Maintenance includes £500 purchase of printer. Motor Car expenses include 2% personal expenses of the CFO. c) Entertainment expenses includes :Gift to customers (table clock costing £13 each for 5 customers) £ 65 Customers’ entertainment £40 d) e) Donation is done to a trading party for local charity purpose. Legal and Professional Fees includes:Accountancy fees Special Audit fees £50 £100 f) General Expenses includes a mobile usage fine of £50 ,paid by the director for using mobile while driving. g) Plant and Machinery: On 1 April 2016 the opening balance of plant and machinery in the pool was £2,200 The following transactions took place during the year ended 31 March 2017: September 2016 Purchased equipment £850,000 June 2016 Purchased Car (CO2 emmission is 130 g/ km) £ 25,000 January 2017 Sold equipment £2,800 h) The details of some trading loss to be adjusted is as follows:Loss for the year ended 31 March 2015 Loss for the year ended 31 March 2016 Page 6 of 10 £3800 £300 Tax/Assignment /Fall 2016/17/CBFS 3.1 Task 4 (LO3- AC 3.1 ) Calculate Chargeable profits (TTP) P, M1, D1 Required:To determine the chargeable profits of Crowne Ltd for the year ended 31 March 2017after necessary adjustments. To achieve P, you are required to calculate the chargeable profits of Crowne Ltd. (Your answer should clearly show the calculation of Capital Allowance, trading loss adjustment and the computation of TTP). To achieve M1, you will have to make effective judgements while including each item of expense and income which are allowed and disallowed in calculation of chargeable profits. To achieve D1, you should justify the conclusions drawn on the basis of relevant rules and formulas and its application giving neat explanation wherever necessary. 3.2 Task 5 (LO3- AC 3.2 ) Calculate the tax liabilities and due payment date P, M3 Required:- Calculate the tax liabilities of Crowne Ltd for the year ended 31 March 2017 and specify due date for filing the return and payment of tax. What are the consequences of late filing after the due date? To achieve P, you in the capacity of an advisor is required to assist Crowne Ltd in calculation of tax liability for the company. To achieve M3, you should have used appropriate methods and techniques with clean workings and notes to justify the difference in tax rates between the periods (if applicable) and how it has an impact on the final tax payable by the company. 3.3 Task 6 (LO3- AC 3.3) Explain how income tax deductions are dealt with. P, M2, D2 Required:- As a tax adviser, you are required to show the various tax deductions to be made by Crowne Ltd and how to deal with it. To achieve P, you are required to explain the various tax deductions for Crowne Ltd during the year 2016/17. To achieve M2, you should have used different sources to collect data on tax deductions relevant for companies like Crowne Ltd. To achieve D2, you should have demonstrated autonomy or independence in research and study and should have met the deadline to submit the tasks and achieve the unit assessment criteria. Page 7 of 10 Tax/Assignment /Fall 2016/17/CBFS Evidence checklist Summary of evidence required by student Task 1 Describe the UK Tax Environment Task 2 Analyse the role and responsibilities of the Tax Practitioner Task 3 Explain the tax obligation of tax payers or their agents and the implications of non-compliance. Task 4 Evidence presented Calculate chargeable profits Task 5 Calculate the tax liabilities and due payment date. Task 6 Explain how income tax deductions are to be dealt with. Resources: List of Websites www.uk budget .com Guidance notes: 1. Use standard document formats and structures. 2. Word process the documents. 3. Use 12 point Arial or Times New Roman script. 4. Provide a list of references and use the Harvard referencing system. 5. Complete the title page and sign the statement of authenticity. 6. Upload the entire assignment in MS word format only on Turnitin. 7. Staple only once to keep the pages of your work together. 8. Late submission, late work will only be marked on the next occasion the unit is taught. 9. Submit the work along with the Turnitin report to the respective assessors in their offices. 10. Collect the assignment submission form duly signed by the assessor and the learner. 11. Grades are subject to External Verification. CLASS ID AND PASSWORD FOR TURNITIN: 1) (Morning Batch) Class Id: ; Password: 2) (Evening Batch) ; Password: Class Id: Word Count for Assignment as prescribed -2500 words with 5% Tolerance rate Page 8 of 10 Tax/Assignment /Fall 2016/17/CBFS Achievement Summary Qualification Unit Number and title Criteria Reference 1.1 1.2 QCF Level: 5 Ms. Sujata Suresh Assessor name Unit -12 Taxation Student name To achieve the criteria the evidence must show that the student is able to: Describe the UK Tax Environment Analyse the role and responsibilities of the Tax Practitioner 3.1 Explain the tax obligation of tax payers or their agents and the implications of non-compliance Calculate chargeable profits 3.2 Calculate the tax liabilities and due payment date. 3.3 Explain how income tax deductions are to be dealt with. 1.3 Achieved? (tick) Higher Grade achievements (where applicable) Grade descriptor Achieved? (tick) Grade descriptor M1: Identify and apply strategies to find appropriate solutions D1: Use critical reflection to evaluate own work and justify valid conclusions M2: Select / design and apply appropriate methods / techniques D2: Take responsibility for managing and organising activities M3: Present and communicate appropriate findings D3: Demonstrate convergent/lateral/creative thinking Page 9 of 10 Achieved? (tick) Tax/Assignment /Fall 2016/17/CBFS Assignment Feedback Formative Feedback: Assessor to Student Action Plan Summative feedback Feedback: Student to Assessor Assessor Signature Date IV Signature Date Student Signature Date Page 10 of 10 Tax/Assignment /Fall 2016/17/CBFS

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