Business Taxation Assignment Scenario ACC305
- Subject Code :
ACC305
Unit 4 Business Taxation Assignment Assignment Scenario
You are employed as a specialist taxation accountant for a national accounting firm.
To improve client relations, the firm has decided to offer a range of workshops for both new and existing business owners to enable them to gain an in depth understanding of their personal and business taxation requirements.
You have been asked to join the team that is to develop and run these workshops.
The following information should be used when completing this unit:
UK Centres:
You will be required to use the most recent tax rules and tables. These will be updated and provided by your tutor, who will advise which tax years information to use when completing the tasks in this assignment.
Non-UK Centres:
If you are based in a non-UK centre and wish to use international local tax information, this will be provided by your tutor and can be used throughout this assignment.
In Task 3, non-UK Centres may choose to use local tax information on the appropriate indirect taxes relating to the purchase of goods and services.
Task 1
You are to prepare a booklet for distribution to new business owners entitled Self -Assessment Taxation and You. For any calculations, you should show your workings and/or explain how you have prepared final figures.
Your booklet must:
- Explain the nature and purpose of self -assessment
- Determine taxable amounts and calculate tax payable for a given scenario of your
- Include a completed self-assessment tax return that you have completed from given
- Assess ethical issues arising in the course of performing tax work for a
Extension activities
To achieve a Merit , your booklet must explain how to determine the tax status of an employee or a contractor.
To achieve a Distinction , your booklet must evaluate the obligations a system of tax imposes on taxpayers and the implications for taxpayers of non-compliance.
Learning outcomes and assessment criteria
LO1 AC 1.1, 1.2, 1.3, 1.4, 1M1, 1D1
Task 2
You are going to lead a business breakfast seminar on the topic of Corporation Tax and must prepare a presentation with a detailed accompanying handout.
Your presentation and handout must:
- Discuss tax law and its implications for different categories ofbusiness such as an incorporated company or a proprietary limited company.
- Determine from given data capital taxes payable and the chargeable gains subject to corporation tax.
- Calculate adjusted profits for corporation tax
- Calculate corporation tax liabilities from given
Extension activities
To achieve a Merit , your presentation with accompanying handout must demonstrate how to prepare a plant and machinery capital allowance computation.
Learning outcomes and assessment criteria
LO2 AC 2.1, 2.2, 2.3, 2.4, 2M1
Task 3
Clients have requested online material to support them with their VAT (or equivalent tax) returns.
You are free to choose the format of the material. For example, you could prepare a written booklet or guide, a set of practical worked examples, a recorded presentation that could be uploaded to YouTube or presentation slides with screenshots of example indirect tax returns, etc. For any calculations, you should show your workings and/or explain how you have prepared final figures.
Your online material must:
- Describe the registration and administration procedures for VAT or equivalent
- Compute tax under VAT or equivalent tax schemes for small business
- Provide an example of how to calculate VAT or equivalent tax liabilities for a specific company. You are free to use data of your own choice
- Discuss penalties that could arise relating to VAT or equivalent
Extension activities
To achieve a Merit , your online material must review when an organisation should voluntarily or compulsorily register/deregister for VAT or equivalent tax.
To achieve a Distinction , your online material must evaluate the types of supply and recognise their effects on input tax claims.
Learning outcomes and assessment criteria
LO3 AC 3.1, 3.2, 3.3, 3.4, 3M1, 3D1
Guidelines for assessors
Work submitted by learners must achieve the learning outcomes and meet the standards specified by the assessment criteria for the unit. To achieve a merit or distinction grade, the learners must demonstrate that they have achieved all the criteria set for these grades. Where work for the pass standard is marginal, assessors can take account of any extension work completed by the learners. The suggested evid ence listed below is how learners can demonstrate that they have met the required standards. The command verbs contained within the AC are highlighted in bold in the suggested evidence boxes.
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Task number |
LOs and AC |
Suggested evidence PASS |
Suggested additional evidence MERIT |
Suggested additional evidence DISTINCTION |
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1. |
LO1 AC 1.1, 1.2, 1.3, 1.4, 1M1, 1D1 |
The learners must produce a booklet for distribution to all new clients entitled Self-Assessment Taxation and You. For the two practical aspects of this task, the learners need to ensure they use appropriate data. This could be attained from business organisations with which they are familiar and have a working knowledge. If they are currently working in an accounting practice, it could be live material that has been anonymised with permission and authenticated as the learners own work. However, if the learner is unable to gain the required data from business organisations, case study or other relevant data could be provided by the tutor. Learners should make substantial use of the indicative content. AC1.1 Learners must explain the nature and purpose of self - assessment. Explanations should |
1M1 Learners must explain how to determine the tax status of workers. Practical examples should be used to explain the theory aspects of this task. |
1D1 Learners must evaluate the obligations of tax and implications of non-compliance. Evaluations should be detailed, balanced and justified throughout. They should discuss penalties for late returns and non-payment of tax. |
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explain when self -assessment is appropriate. AC1.2 Learners must determine taxable amounts and tax payable using chosen/given data including, for example, expenditure which is allowed in calculating taxable trade profits, basis of assessment for employment income, deductions for employment income including statutory approved mileage rates, property business profits, rent-a- room relief, premiums received from the grant of a short lease, property business loss, tax payable on savings income, tax payable on dividend income, tax exempt investments, computations of taxable income and tax payable including adjustments to net income for pension, NIC and gift aid payments. They should include any capital gains and related allowances and tax. AC1.3 Learners should include a completed tax return prepared from the data they are using. AC1.4 Learners must assess ethical issues such as tax avoidance and evasion. |
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2 |
LO2 AC 2.1, 2.3, 2.3, 2.4, 2M1 |
The learners need to prepare a presentation with an accompanying detailed handout, the format of which can be chosen by the learner. For the practical aspects of this task, the learners need to ensure they use appropriate data. This could be attained from business organisations with which they are familiar and have a working knowledge. If they are currently working in an accounting practice, it could be live material that has been anonymised with permission and authenticated as the learners own work. However, if the learner is unable to gain the required data from business organisations, case study or other relevant data could be provided by the tutor. Learners should show workings or provide explanations as to how calculations have been carried out to demonstrate their understanding. AC2.1 Learners must discuss tax law for companies and its implications including definitions of period of account, accounting period, financial year, taxable total profits and augmented profits, tax penalties, when an accounting period starts and ends and what determines a companys residency. |
2M1 Learners must demonstrate the preparation of a capital allowances computation using appropriate data and rates of depreciation. |
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AC2.2 Learners must determine capital taxes payable and gains chargeable to corporation tax on example data. AC2.3 Learners must calculate adjusted profits from the data they are using for corporation tax purposes. This should take account of accounting period, allowable expenditure and any allowances and releifs. AC2.4 Learners must calculate tax liability based on their calculations of adjusted profits. |
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3 |
LO3 AC 3.1, 3.2, 3.3, 3M1, 3D1 |
The learners need to prepare online support for clients relating to VAT or equivalent tax returns. For the practical aspects of this task, the learners need to ensure they use appropriate data. This could be attained from business organisations with which they are familiar and have a working knowledge. If they are currently working in an accounting practice, it could be live material that has been anonymised with permission and authenticated as the learners own work. However, if the learner is unable to gain the required data from business organisations, case study or other |
3M1 Learners must review the rules relating to voluntary and compulsory registration/ deregistration including thresholds and administration. |
3D1 Learners should evaluate the different types of supply such as zero-rated, exempt, reduced-rate supplies, explaining how these affect input claims for the business. |
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relevant data could be provided by the tutor. Learners should show workings or provide explanations as to how calculations have been carried out to demonstrate their understanding. AC3.1 Learners must describe the registration and administration for VAT or equivalent tax. This should include the scope VAT or equivalent indirect taxation and how it falls as tax on the final consumer such as VAT in the UK. AC3.2 Learners should compute VAT or equivalent tax based on small business organisations. This includes calculation of input/output tax under a range of schemes. AC3.3 Learners must calculate VAT or equivalent tax liability for a specific company. AC3.4 Learners must discuss VAT or equivalent tax penalties for late returns and non-payment of tax. |
