Limited-time offer! Save up to 50% Off | Solutions starting at $6 each  

Report On UK Taxation Environment

Added on - 03 Feb 2020

Trusted by 2+ million users,
1000+ happy students everyday
Showing pages 1 to 4 of 17 pages
UK Taxation1
TABLE OF CONTENTSINTRODUCTION...............................................................................................................................4TASK 1.................................................................................................................................................41.1 UK tax environment..................................................................................................................41.2 Roles and responsibilities of tax practitioners...........................................................................61.3 Tax obligations for the tax payers and agents and implications of non-compliance.................7TASK 2................................................................................................................................................82.1 Calculate relevant income, expense and allowances.................................................................82.2 Calculating tax liabilities for employed and self-employed individuals and payment dates.....82.3 Complete relevant documentation and tax returns..................................................................10TASK 3..............................................................................................................................................133.1 Calculation of chargeable profits.............................................................................................133.2 Calculation of tax liabilities and due payment dates...............................................................133.3 Explaining income tax deductions..........................................................................................13TASK 4...............................................................................................................................................134.1 Identify chargeable assets........................................................................................................134.2 Calculation of capital gains and losses....................................................................................144.3 Calculation of capital gains tax payable..................................................................................14CONCLUSION..................................................................................................................................14REFERENCES...................................................................................................................................152
INTRODUCTIONIn the United Kingdom, government imposes number of taxation obligations to both theindividuals as well as corporate sector. It is the main source of their income which is used by themfor economic welfare and development. Moreover, government make changes in the rules,regulations and taxation provisions time to time for wider economic growth and success. Aim of thepresent project report is to identify UK taxation environment, its structure and assessing theobligatory provisions of tax payers for non-compliance of the same. Furthermore, assignment willalso focus on determining the roles and responsibilities of tax practitioners in making timelytaxation payment to the government. In addition to this, report will also calculate taxation liabilitieson chargeable income, capital gains and income tax deductions which are prescribed in the UKtaxation legislations.TASK 11.1 UK tax environmentAs per the UK tax laws, every citizen whose total income is beyond the taxation limit isresponsible to pay taxation as per the prescribed rates. Tax is paid to the government via taxationdepartments and Her Majesty's Revenues and Customs (HMRC). In UK, it is the responsibility ofHMRC to assure that every individual and corporation is paying timely taxes to the government sothat proper funds will be available in UK treasury for expenditures on public services, financialsupport, safeguarding the monetary movements, enforcement activities, etc. (Jenkins, 2015).According to the legislation, tax is calculated for every assessment year which ranges from 6thto 5thApril of the next year. There are two main categories of taxes imposed by the government that aredirect and indirect tax.3
Direct taxes:There are certain tax duties which are directly borne by the tax contributorsand known as direct taxes. In other words, issue of tax payment and tax burden is faced by the sameperson (National Bureau Of Economic Research, 2016). For instance, income tax and corporationtaxes are the types of it which are levied on individual's income and net profit of businesses.Furthermore, taxes on chargeable gains (CGT) is also a direct tax imposed by the UK government.Income taxes: It is the most important source of government treasury fund so that sufficientamount of money will be available for the spending on public services. These kind of taxes areoften charged on pension, rental income, revenue from self-employment, etc. (UK TaxEnvironment,2016). It is mainly subdivided into three parts that are the incomes in form of saving(interest on investment such as loan interest), non-saving (income from employment, trade andprofession) and dividend (investment return).Corporation taxes:All corporations that are operating in UK are liable to pay regular taxeson their total taxable profits as per mentioned rates. It is levied by the government on clubs,societies, cooperatives, association, charities and other business organizations (Salanie, 2011).Capital gain taxes (CGT): Amount of profit on the sale of fixed assets is called as capital4
desklib-logo
You’re reading a preview
Preview Documents

To View Complete Document

Click the button to download
Subscribe to our plans

Download This Document