Learning Outcome Learning outcome Assessment Criteria

Learning

Outcome

Learning

outcome

Assessment

Criteria

In this assessment you will have the

opportunity to present evidence that shows you

are able to:

Task

no.

Evidence

(Page no)

LO1

Understand

the duties and

responsibilitie

s of the tax

practitioner in

the UK tax

environment

1.1 describe the UK tax environment 1

1.2 analyze the role and responsibilities of the tax

practitioner 1

1.3

explain the tax obligations of tax payers or

their agents and the implications of

noncompliance 1

LO2

Be able to

calculate

personal tax

liabilities for

individuals

and

partnerships

2.1 calculate relevant income, expenses and

allowances 2

2.2

calculate taxable amounts and tax payable for

employed and self employed individuals and

payment dates

2

2.3 complete relevant documentation and tax

returns 2

LO3

Be able to

calculate

corporation

tax

liabilities for

companies

3.1 calculate chargeable profits 3

3.2 calculate tax liabilities and due payment dates 3

3.3 explain how income tax deductions are dealt

with 3

LO4

Be able to

calculate

capital gains

tax payable

for

individuals

and

businesses

4.1 identify chargeable assets 4

4.2 calculate capital gains and losses 4

4.3 calculate capital gains tax payable 4

Learner declaration

I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.

Student signature: Date:

Qualification Unit number and Title

Pearson BTEC Level 5 HND Diploma Business Unit 12: Taxation

Student Name Assessor Name

Mr Farid

Date issued Completion date Submitted on

09th

Feb, 2015 26th

Mar, 2015

Assignment title Taxation of individuals and limited companies in the United Kingdom

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

An effective approach to assignment

planning, study and research is in evidence

Evaluations and judgements, using evidence,

have been made

Problems with a number of variables have

been considered

In order to achieve M1, all pass criteria would have been

achieved and M1 as stipulated like discussion with example

about UK tax system, tax rates for all entities, role &

responsibilities of tax payer as well as tax practitioner and

implication of non-compliance.

(Task 1, 3 and 4)

M2 Select / design and apply appropriate

methods / techniques

A range of relevant theories have been

included

Relevant theories and techniques have been

applied to the case study

A range of different sources of information

have been used

The selection of methods/techniques of

analysis and use of source material have been

justified

Information/ data has been synthesised and

processed

In order to achieve M2, all M1 would have been achieved,

with evidence of using an appropriate tax rate, computation

and correct result in context of the scenario.

(Task 1, 3 and 4)

M3 Present and communicate appropriate

findings

The written assessment is coherent, shows

logical development and a sound

understanding of theories, concepts and

research evidence

The written assessment demonstrates that an

appropriate structure and approach has been

used

The written assignment demonstrates a

writing style appropriate for audiences both

familiar and unfamiliar with the subject.

The written work is clearly written and

technical language has been accurately used

To achieve M3, M1and M2 must have been achieved and

provide evidence of resulted figures, appropriate tax rates and

related tax documents acceptable in the UK tax environment

and organisations, i.e. P60, P45, tax return etc.

(Task 2)

D1 Use critical reflection to evaluate own

work and justify valid conclusions

Conclusions have been arrived at through

synthesis of ideas and evaluation of research

evidence and have been justified

The validity of results has been evaluated

using defined criteria

Realistic and informed recommendations

have been proposed against defined

characteristics for success

In order to achieve D1, M1, M2 and M3 must have been

achieved and an appropriate conclusion with explanation

should be drawn based on the tax computation and rate

according to provided scenario.

(Tasks 2)

D2 Take responsibility for managing and

organising activities

The written assignment shows excellent

planning, is organised coherently and is

clearly expressed

Independence of thought and gathering of

research material has been demonstrated

Material used has been clearly understood

and well organised

The importance of individual and group

behaviour in organisations and its

management has been recognised and

addressed

To achieve D2 you will have demonstrated an effective

approach to independent research and study, like UK tax

system, organisation’s tax obligation etc. And will have met

the deadline to submit the tasks and achieve the unit

assessment criteria.

(Tasks 1, 3 & 4)

D3 Demonstrate convergent /lateral / creative

thinking

There is evidence of self-generated ideas

with evaluation

Convergent and lateral thinking are evident

in the written assignment

Creative thinking is evidenced with

unfamiliar material.

Problem-solving is in evidence Innovation

and creative thought are in evidence

Receptiveness to new ideas is evident

Ideas have been generated, evaluated and

informed decisions/ recommendations are

made.

This will be awarded based upon overall format, tax rates,

calculations, creativity and style of presentation.

(Tasks 2, 3 & 4)

Qualification Unit number and Title

Pearson BTEC Level 5 HND Diploma Business Unit 12: Taxation

Student Name Assessor Name

Mr Farid

Date issued Completion date Submitted on

09th

Feb, 2015 26th

Mar, 2015

Assignment title Taxation of individuals and limited companies in the United Kingdom

Purpose of this assignment

This unit aims to give learners an understanding of the taxation of individuals and limited companies in the

United Kingdom.

Task 1: Duties and responsibilities of the tax practitioner in the UK tax environment

(LO1: 1.1, 1.2, 1.3 and Grades: M1, M2, D2)

You have recently graduated and been offered a job as a Trainee Accountant in a medium sized accounting

firm. The firm has high value clients including individuals and corporate organisations who hire the services

of your firm for tax and accounts purposes.

It is very important to have a good knowledge of the UK Tax law particularly tax rates and key dates in order

to work effectively for the clients. Therefore, you are expected to have a basic knowledge about the UK Tax

system and its implications.

Your Line Manager has given you a task to present a report based on the following:

1.1 Describe the UK Tax environment.

1.2 Analyse the role and responsibilities of the UK Tax Practitioners.

1.3 Also explain the tax obligations of tax payers or their agents and the implications of noncompliance.

In order to achieve M1, all pass criteria would have been achieved and M1 as stipulated like discussion with

example about UK tax system, tax rates for all entities, role & responsibilities of tax payer as well as tax

practitioner and implication of non-compliance.

In order to achieve M2, all M1 would have been achieved, with evidence of using an appropriate tax rate,

computation and correct result in context of the scenario.

To achieve D2 you will have demonstrated an effective approach to independent research and study, like UK

tax system, organisation’s tax obligation etc. And will have met the deadline to submit the tasks and achieve

the unit assessment criteria.

Task 2: Personal Tax Liabilities for Individuals and Partnerships

(LO2: 2.1, 2.2, 2.3 and Grades: M3, D1, D3)

Scenario 1 (for Employed)

Ms. Bailey joined as a full-time in an IT Consultancy firm on 5th May, 2014. Her contracted weekly hours are

37.50 with agreed pay rate of £25 per hour.

Scenario 2 (for Self-Employed)

Mr. Thomas is running 2 retail shops and working as a self employed. His financial activities for shop 1 and 2

during the year ended 5th

April 2014 are as follows:

SHOP1 £

Sales 697,092

Cost of Sales 523,150

Wages 52,000

Rent & Rates 31,210

Drawing 9,600

Administrative cost 15,865

Travel 1,450

Charitable donation 157

Bank charges 435

Depreciation 2,000

Capital Allowance 1,800

SHOP 2

Tax Losses 874

You are required to do the following by provided information in the above scenarios:

2.1 a) Calculate the relevant income and allowances for individual.

b) Calculate the relevant income, expenses and allowances for self-employed.

2.2 Calculate the taxable income and tax payable (for both employed and self-employed) and provide tax

payment due date for self employed.

2.3 Complete the relevant documentation and tax return for the above employed and self-employed at the

end of tax year (forms are available on Moodle).

To achieve M3, M1and M2 must have been achieved and provide evidence of resulted figures, appropriate tax

rates and related tax documents acceptable in the UK tax environment and organisations, i.e. P60, P45, tax

return etc.

In order to achieve D1, M1, M2 and M3 must have been achieved and an appropriate conclusion with

explanation should be drawn based on the tax computation and rate according to provided scenario.

D3 will be awarded based upon overall format, tax rates, calculations, creativity and style of presentation.

Task 3: Corporation Tax Liabilities for Companies

(LO3: 3.1, 3.2, 3.3 and Grades: M1, M2, D2, D3)

The XYZ Limited Company is running a textile business in London. The financial data of the company for the

year 2013-14 are as under:

Financial Data - XYZ Limited Company

£

Sales 480,000

Purchase 160,000

Direct overheads 80,000

Indirect overheads 60,000

Dividend paid 36,000

Interest paid 50,000

Dividend received (10% taxable) 4,500

Capital Allowance for the year 43,200

Depreciation 48,000

Capital gains 80,000

Capital loss 30,000

Income from letting out building 20,000

Wear & Tear allowance 2,000

Interest on investment (10% taxable) 27,000

The company is entitled (for the above period) to an audit exemption under section 477of the Companies Act

2006. Also financial statements are being prepared in accordance with the special provisions of Part 15 of the

Companies Act 2006 relating to small companies and in accordance with the Financial Reporting Standard for

small entities (effective 2008).

You are required to do the following:

3.1 Calculate the chargeable profit for the company.

3.2 Calculate the tax liability of the company and when it would be due.

3.3 Explain how income tax deductions are dealt with.










Task 4: Capital Gains Tax for Individuals and businesses

(LO4: 4.1, 4.2, 4.3 and Grades: M1, M2, D2, D3)

Scenario 1

Mr. John Potter is working as a self-employed and his extracted financial information for the year 2013-14 are

as under. He is using straight line depreciation method at the rate of 20% for his non-current assets.

Extracted Financial Information - Mr. John Potter

£

Trading Profit 57,100

Accounts Receivables 29,400

Inventory 14,200

Textile Machinery bought as on 16th August, 2013 60,000

Equipment bought at discounted price on 1st May, 2013 36,000

Sale of above equipment on dated 31st March, 2014 42,000

Capital gains tax exemption 10,900

4.1 Identify the chargeable asset/s for capital gains tax.

4.2 Calculate the amount of capital gains/losses and the amount of taxable gains/losses that should be

adjusted with his trading profit.

Scenario 2

CMS Trust has the following transactions in its Non-current assets account at the year end.

Non-current assets - CMS Trust

£

Tangible Assets (opening balance) 116,000

Tangible Assets (closing balance) ----

Sales proceed received 43,000

Trust bought the above asset 5 years before at a cost of £580,000 and used a straight line depreciation method.

The capital gain tax exemption for the trust is £5,450 for the year 2013-14. You are required to:

4.3 Calculate the amount of capital gains/losses and how much amount to pay as a capital gain tax liability.










Evidence

checklist Summary of evidence required by student

Evidence

presented

Task 1

A presentation which effectively describes the understanding of

duties and responsibilities of tax payer and tax practitioner in the UK

tax environment.

Task 2 An effective calculation and working style shows about the gain of

knowledge regarding employed and self-employed tax.

Task 3 A clear understanding of each financial component treatment and the

basis applied to calculate the correct corporation tax.

Task 4 Differentiation between chargeable assets, adjustment and rate

which applies to calculate capital gains tax are appropriate.

Achievement Summary

Qualification

Pearson BTEC Level 5

HND Diploma Business

Assessor name

Unit Number and title Unit 12: Taxation

Student name

Criteria

Reference

To achieve the criteria the evidence must show that the student is able to: Achieved?

(tick)

LO 1

1.1 describe the UK tax environment

1.2 analyze the role and responsibilities of the tax practitioner

1.3 explain the tax obligations of tax payers or their agents and the implications of

noncompliance

LO 2

2.1 calculate relevant income, expenses and allowances

2.2 calculate taxable amounts and tax payable for employed and self employed

individuals and payment dates

2.3 complete relevant documentation and tax returns

LO 3

3.1 calculate chargeable profits

3.2 calculate tax liabilities and due payment dates

3.3 explain how income tax deductions are dealt with

LO 4

4.1 identify chargeable assets

4.2 calculate capital gains and losses

4.3 calculate capital gains tax payable

Minimum pass requirement

Higher Grade achievements (where applicable)

Please see details in first page

Grade descriptor

Achieved?

(tick)

Grade descriptor

Achieved?

(tick)

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

Assignment Feedback

Formative Feedback: Assessor to Student

Action Plan

Summative feedback

Feedback: Student to Assessor

Assessor Signature

Date

Student Signature

Date

Learning Outcome Learning outcome Assessment Criteria

Documents

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