Taxation assignment

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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) 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 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 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. Page 3 of 10 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. Page 4 of 10 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 Page 5 of 10 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 Page 6 of 10 £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. Page 7 of 10 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 Page 8 of 10 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 Page 9 of 10 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 Page 10 of 10 Tax/Assignment /Spring 2016/17/CBFS
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Running Head: TAXATION IN UK

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Taxation in UK
Student Name
University Name
Date

TAXATION IN UK

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Taxation in UK
Table of Contents:
Contents
Describe tax environment in UK
Sources of tax law

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Tax payer’s responsibility:.............................................................……………………………….4
The implications of non-compliance: …………………………………………………………….8
Non-implication:

……………………………………………………………………………..8

TheChargeableProfit……………………………………………………..………………….….9
The tax liabilities and due payment dates:

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References:………………………………………………………….…...……………………14

Describe tax environment in UK
UK Tax: “The UK taxation structure is made out of different various taxes, some of which are
quick taxes and some of which are underhanded taxes:”


“Direct taxes are charged on pay, benefits or other grabs and are either deducted at source

or paid particularly to the obligation specialists. The guideline arrange taxes which are payable
by individuals are wage survey, capital increments obligation and legacy charge. The essential

TAXATION IN UK

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direct appraisal payable by associations is venture charge. “These taxes are coordinated by HM
Revenue and Customs (HMRC), which was confined in April 2005 when the Inland Revenue
and HM Customs and Excise were joined.” National Insurance responsibilities, which can
moreover be looked upon as a kind of direct taxation, are overseen by the National Insurance
Contributions Office (NICO) of HMRC (Leicester, A. 2006). ”


“Indirect taxes can't avoid being taxes on spending. They are charged when a taxpayer

buys a thing and are paid to the trader as a component of the sticker price of the thing. It is then
the vender's commitment to pass the obligation on to the cost pros. Underhanded taxes fuse
regard included appraisal (VAT), stamp commitment, conventions commitments and the
concentrate commitments claimed on alcohol, tobacco and oil. The fundamental deviant
obligation considered in this book is VAT, which is in like manner controlled by HM Revenue
and Customs”.
Sources of tax law
There is no single wellspring of UK cost law.
The significant models are set down in Acts of Parliament yet it is left to the courts to make an
understanding of these Acts and to give a magnificent bit of the detail of the cost structure
Statute law: “The essential standards of the UK tax system are exemplified in various tax
statutes or Acts of Parliament. The primary statutes presently in compel for each tax are:”
These statutes are changed every year by the yearly Finance...


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