Aim
To develop knowledge and understanding in the
core areas of tax related to businesses and
their employees.
Objectives
On completion of this paper candidates should
be able to:
-
explain the operation of the UK tax system
-
prepare computations of the corporation
tax liability for individual companies and
groups of companies
-
prepare computations of the income tax liability
for employees, sole traders and partnerships
-
Prepare computations of the chargeable gains
arising on incorporated and unincorporated
businesses
-
explain and apply the principles and scope
of Value Added Tax
-
explain the impact of National Insurance
Contributions on employees, employers and
the self-employed
-
explain the use of exemptions and reliefs
in deferring or minimising tax liabilities
and
-
demonstrate the skills expected in Part
2
Content
Corporate businesses scope of corporation
tax, residence, profits chargeable to corporation
tax, charges on income, chargeable gains, calculation
of the corporation tax liability, overseas aspects,
groups of companies, self assessment system,
Value Added Tax.
Unincorporated
businesses basic income tax computation,
self assessment system, Schedule D case I/II,
Capital gains tax, Value Added Tax, Class 2
and Class 4 NIC.
Employees
Schedule E, occupational pension schemes,
Class 1 and Class 1A NIC.
Tax
planning employment v self-employment, remuneration
packages, choice of business medium, incorporation
of a business, disposal of a business, directors
and shareholders.
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