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)
Spring 2016-17
Student name
Assessor name
Ms. Sujata Suresh
Student No.
Internal Verifier (IV) name
Ms. Sujatha Bhat
Date issued
Completion date
March 2017
16th April 2017
Assignment title
UK Tax System – Tax practitioner, Corporation Tax for UK Companies
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
Assessment
Criteria
Submitted on
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 /Spring 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
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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
Autonomy/independence has
been demonstrated
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)
Tax/Assignment /Spring 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 budgetary impact of the low oil prices has resulted in tax reforms. Both Corporates and individuals
focus on understanding the Tax environment and tax planning at various stages.
1.1
Task 1 (LO1- AC 1.1 ) Describe the UK tax environment P, M3,D2
Required:As a tax practicing expert licensed by HMRC in UK, you are required to describe in detail the UK tax
environment to your clients. Your explanation must include all relevant information 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 taxation manager in the audit firm, brief your clients the role and responsibilities of the tax
practitioner.
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 methods of presentation to show the duties and
responsibilities of tax practitioner.
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Tax/Assignment /Spring 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
Jip Co Ltd, a UK registered company has completed its finalization of accounts and is waiting for the
auditors’ advice for filing the tax returns. Jip co’s accountant has worked out the tax calculation and
submitted to the audit office. You are one of the senior tax manager in the audit office. As a senior in the
team, you work on the tax calculation and advice Jip Co Ltd on filing of returns, maintenance of books of
records and also advice Jip Co Ltd on adherence of tax payment rules and regulation for the year 2016-17.
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Tax/Assignment /Spring 2016/17/CBFS
You are given the accounts of JipCo Ltd for the year ended 31 March 2017.
£
£
Sales
3800,000
Less: Cost of Sales
280,000
Gross Profit
3520000
Add: Other income:
Rental Income
1,500
Dividend received
2,100
Profit on disposal
3,000
Commission received
3,500
3530100
Less: expenses:
Wages
58,000
Maintenance
2,000
Telex bill
1,500
Telephone Expenses
2,520
Van Expenses
6,600
Lighting
4000
Depreciation
8,000
Advertisement
2,000
Subscription
6,000
Entertainment expenses
8,700
Donation
960
Legal and professional charges
500
General Expenses
7,200
Directors’ fees
6,000
Audit fees
NET PROFIT
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1000
114980
3415120
Tax/Assignment /Spring 2016/17/CBFS
Notes:
a)
There is an amount of £ 1,010 for installation of machine included in maintenance.
b)
Entertainment expenses includes :Gift to customers (watch costing £73 each for 5 customers)
£ 365
Customers’ entertainment
c)
d)
£140
Donation is done to a political party for getting trade contracts.
Legal and Professional Fees includes:Accountancy fees
Special Audit fees
£150
£100
e)
f)
General Expenses includes an over speeding fine of £150 paid for Manging Director’s car.
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:
August 2016
Purchased Machinery
£950,000
July 2016
Purchased Car (CO2 emmission is 130 g/ km)
£ 125,000
January 2017 Sold machinery
£3,800
g)
The details of some trading loss to be adjusted is as follows:Loss for the year ended 31st March 2014
Loss for the year ended 31st March 2015
Loss for the year ended 31st March 2016
h) Chargeable gains for the year
31st March 2017
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£13800
£2800
£3000
£1000
Tax/Assignment /Spring 2016/17/CBFS
3.1
Task 4 (LO3- AC 3.1 ) Calculate Chargeable profits (TTP) P, M1, D1
Required:To determine the taxable total profits of Jip Co Ltd for the year ended 31 March 2017after necessary
adjustments.
To achieve P, you are required to calculate the Taxable total profits of Jip Co Ltd (Your answer should
include 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 Jip Co 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 Jip Co Ltd in calculation of tax liability
for the company.
To achieve M3, you should have used appropriate structure and approach 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 Jip Co Ltd and how to
deal with it.
To achieve P, you are required to explain the various tax deductions for Jip Co 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 Jip Co 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.
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Tax/Assignment /Spring 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.
Word Count for Assignment as prescribed -2500 words with 5%
Tolerance rate
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Tax/Assignment /Spring 2016/17/CBFS
Achievement Summary
Qualification
Unit Number and
title
Criteria
Reference
1.1
1.2
QCF Level: 5
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
Achieved?
(tick)
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
Ms. Sujata Suresh
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
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Achieved?
(tick)
Tax/Assignment /Spring 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
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Tax/Assignment /Spring 2016/17/CBFS
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