Taxation Fundamental Coursework

Taxation Fundamental
Coursework

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
SECTION A.....................................................................................................................................3
Detailed explanation relating to Fiona’s income tax payable and NIC......................................3
SECTION B.....................................................................................................................................5
PART 1 – Impact of taxes and tax planning - Financial Act 2020.............................................5
PART 2 – Income Tax Administration.......................................................................................6
PART 3 – Income Tax Administration.......................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
APPENDIX....................................................................................................................................10

INTRODUCTION
Taxation is being defined as the concept through which government charges some the
money from the business and citizen. This is very important for the government to charge the tax
as this will add to the income of the government. The present report will outline the various types
of the adjustment which need to be undertaken at the time of calculating the tax. This is
necessary because for different types of the elements of the income and expenses different
requirement is there with respect to tax calculation.
SECTION A
Detailed explanation relating to Fiona’s income tax payable and NIC
Salary = reverse of date of birth / 10
960604/10 = £96060.4
Calculation of gross salary
Salary 96060.4
bonus 15000
basic personal allowance 12500
gross salary 98560.40
Income tax payable
Gross salary 98560.4
Add:
Interest on building 3942.416
Dividend income 9856.04
Total income 112358.9
Less:
Charitable donation 2956.812
Contribution to HMRC pension scheme 514.835
Property utility bills 76000
Payment for music system 2000
Car price 24500