This optional unit introduces students to UK taxation relevant to businesses. It is about the computing of business taxation, preparation of tax returns and how taxation has an impact on the running of a business for sole traders, partnerships and limited companies. In learning how to prepare tax computations, students will gain skills in the tax treatment of capital expenditure, and the adjustment of accounting profits for tax purposes for sole traders, partnerships and limited companies. In addition, they will be able to allocate profits between partners in a partnership and be able to calculate National Insurance (NI) contributions for the self-employed.
Students will become familiar with the completion of tax returns. They will know when these returns need to be filed with the UK’s Revenue and Customs authority (HMRC), and the implications of errors in tax returns, the late filing of returns and the late payment of tax. They will understand how to compute tax on the sale of capital assets, and they will have an introduction to some of the tax reliefs available to businesses. Students will be able to discuss the ethical issues facing business owners and managers in reporting their business tax and the responsibilities that an agent has in giving advice on tax issues to business clients.
- Complete tax returns for sole traders and partnerships and prepare supporting tax computations
- Complete tax returns for limited companies and prepare supporting tax computations
- Provide advice on the UK’s tax regime and its impact on sole traders, partnerships and limited companies
- Advise business clients on tax reliefs, and their responsibilities and their agent’s responsibilities in reporting taxation to HMRC
- Prepare tax computations for the sale of capital assets