Business Taxation Alternative Assessment

Business Taxation Alternative
Assessment

Table of Contents
INTRODUCTION...........................................................................................................................3
QUESTION 1...................................................................................................................................3
Linda's trading profits for the year 31st march 2121: .................................................................3
QUESTION 2...................................................................................................................................4
Criteria for the use for employment for self employment, why people prefer self employment:
......................................................................................................................................................4
Why prefer self-employment rather than being employed, resulting in so many IR 35 cases:...6
QUESTION 3...................................................................................................................................7
Discussion Six badges for trade:..................................................................................................7
Different VAT schemes for the various VAT registered companies:..........................................9
QUESTION 4.................................................................................................................................10
Inheritance tax arising when the death:.....................................................................................10
Capital gain tax liability:............................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business taxation alludes to the tax contributions that companies are obliged to incur as
part of their periodic business operational processes Whether in business there is a sole owner,
associate, limited company or corporate entity, LLP etc. each entity shall be accountable for
complying with the taxation requirements (Blakeley, 2018). The study-assessment discusses
different facets of the business taxation. The report covers aspects like practical sum
on assessment of trading profits, key 6 trade badges, multiple VAT schemes with respect to
different approved VAT enterprises etc. In addition, it consists of practical sum of inheritance tax
as well as capital gain tax requirements.
QUESTION 1
Linda's trading profits for the year 31st march 2121:
Linda’s trading profit (before deduction of capital allowances) for year ended 31 Mar 2021
Particulars/details £ Amounts
Net profits per accounts 6,96 0
Add: Expenditure which shows in the income
account but not allowable
Depreciation 2,500
Installation of new improved heating system 3,800
Telephone costs 220
motor expenses 650
Business entertaining 520
general bad debts provisions 200 7,890
14,850
Deduct
Income not taxable as trading income
Rental income 1,200

Bank interest receives 80 1,280
Trading profits 13,570
QUESTION 2
Criteria for the use for employment for self employment, why people prefer self employment:
Employment implies to contract of employment agreed by both employers and
employees. Normally, the employer controls what his/her employee does, including where
their employees work. Employment is indeed an agreement between the employer
and employees to give certain remuneration to the employee. In order, the employee should be
given a salary/wage or even a regular salary. Although employee personnel may begin
negotiations certain matters in the employment contract the provisions are determined entirely
by employer. Both sides may also cancel such contract (Milanez, 2017). An employment
contract with an individual employee can require a verbal confrontation, written
correspondences or even letter of confirmation. The United Kingdom outlines employment as
'service contract.' There is a contract under which there are shared commitments among
employers and their employees. The employment contract gives the employer power over where
and how job can be done. In general, in order to render matters much more complex, there's also
no formal acknowledgement as to how term 'work rules' can be defined.
Employers deduct federal as well as state taxation and pay expenses like Medicare, Welfare
Benefits and disability taxes on salaries and wages paid by workers. That's one of factors which
puts employment other than working for independent contractor. Employment often allows
employee personnel to control more facets of their job, such as the place of work, infrastructure,
tasks, hours and salaries. Employee feedback, self-reliance and self-reliance differ greatly based
on employer. Some enable considerable autonomy in way employees operate while others decide
how employees use each minute; all circumstances are employment. When the employee
disagrees with employer in private sector, employee has range of choices (Kudrle, 2019). They
can carry the matter to their supervisor, go to HR, speak to senior leadership or even offer notice.
Employers aren't allowed to discrimination on the grounds of colour, nationality, faith, sex (such
as pregnancy), personal preference, sexual preference, political orientation, aged, disabilities or
genetic details. Employees have right to lodge a Discrimination Complaint with relevant
authorities, which enforces fair employment regulations.