(solved) Essay on Taxation of UK
18 Pages5214 Words42 Views
Added on 2020-06-03
(solved) Essay on Taxation of UK
Added on 2020-06-03
ShareRelated Documents
TAXATION
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Explaining tax environment of UK..................................................................................11.2 Explaining role and responsibility of tax practitioner......................................................21.3 Describing obligations and Non compliance of tax payers..............................................3M1 Judgement relevant with the roles and responsibilities of tax practitioner......................6D 3 Ideas and decision to understand the roles and duties of tax practitioners......................6TASK 2............................................................................................................................................62.1 Calculations for Susan's income expenses and allowances..............................................62.2 Susan's taxable amount for income generated by various sources...................................82.3 Related documents for tax return of Susan.......................................................................9M 3 Logical development of principle and concepts in analysing tax liabilities.................10D 2 Managing activities for calculating tax liabilities..........................................................10TASK 3..........................................................................................................................................113.1 Calculations for chargeable income of Aldi stores.........................................................113.2 Measuring tax liabilities for the Aldi stores...................................................................123.3 Explaining the income tax deductions............................................................................134.1 Identification of chargeable income...............................................................................134.2 Calculations for capital gains and losses........................................................................144.3 Calculations for tax payable on capital gains.................................................................14M2 Applying techniques for measuring corporate tax.........................................................14D1 Ideas to measure the Corporate tax Liabilities Capital gain payable.............................14CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................15
INTRODUCTIONUK as world most powerful economy has maintained the fame with the help of variousrules and regulations imposed over citizens. Taxation and acts facilitates the guidelines inmaking a beneficiary regulation regarding taxes imposed on income generated by citizens as wellas corporate industries. In the present assessment, there will be explanation regarding the conceptof UK government in taxation. The role and responsibilities of tax practitioners, tax payers aswell as agents will be described with the help of HMRC rules and regulations. The capital gainsand calculations for the assessable income can be measured in various statements as well asanalysing the deduction or allowances awarded for such transactions.TASK 11.1 Explaining tax environment of UKTaxation levied by the UK government in consideration with collecting reserves orrevenue that will be utilised in the welfare of society. They facilitate health and safety to theircitizens and utilise such funds in promoting research and development. Monetary benefits will beprovided to enhancing the educational sector and facilitating students with scholarships whichhelps them in further studies (Hasseldine ed., 2017). In context with developing the nation'seconomy the industrial sector as well as agriculture sectors will be benefited with the newtechnology and reforms in the developing crops as well as manufacturing gods or services. UK has different taxation policies as compare with other nations. Collection of taxes onthe basis of various legislations or taxes such as Income tax, Corporate tax, Capital gain tax etc.which helps in collection of funds from individuals as well as industrial units (Budd, 2016).Main revenue can be collected by HMRC as they are Central government of UK and the othertaxations will be collected by Local government in UK which works as state government incounty and handle local operations. Income tax, corporate tax and value added tax will becalculated by central government. Indirect taxes such as parking charges as well as several smalltaxes will be collected by local government.Taxes can be levied by HMRC legislation by several methods including various acts suchas:Capital gain tax: HMRC charged the taxes over revenue generated on purchasing andselling of assets. If the purchasing value of the asset is lower than the selling price than there will1
be capital gain generated by the owner of such asset, than he will be liable to make taxation overit (Ehrlich and Radulescu, 2017). If the owner generated loss over article than it will be capitalloss. These transactions will be exempted as per the conditions or as per norms set by theHMRC1 legislations. It follows taxation act of TCGA2 1992.Corporate tax: These taxes are collected through the corporate business, industries andfirms over turnover generated by them (Basak, 2016). HMRC collects taxes through variousmodes like imposing custom duties, import and export taxes, transportation taxes etc. The taxescan be collected through various acts and laws such as CAA3, 2001, CTA4, 2009 and ICTA51988.Income tax: HMRC collected taxes on the basis of income generated by individuals fromseveral sources. Taxes can be imposed over the income generated through, employment, selfgoverned business, pension, dividends as well as from rental property (Kemmerling, 2016).Collection of revenue from government through taxes by various acts such as CAA 2001,ITTOIA6 2005, ITEPA7, 2003 and ITA8, 2007.1.2 Explaining role and responsibility of tax practitionerTaxes paid by tax practitioners on behalf of tax payers on their assessable income will beresponsible for disclosure of informations to HMRC. They must be aware with following thevarious roles and responsibilities such as they must acquired the certificate or license of taxpractitioners (Haffner and Winters, 2016). They must be registered under HMRC norms andhave gain authority to measure taxation of citizens. Tax practitioners will be agents, chartedaccountant as well as the accounting professional in any company. They must acquired the goodknowledge related with fluctuations in the taxation rates and ever changing government policies.Taxes levied on the income or profit generated by an individual on the basis of various tax slabs.Thus, this taxation slabs changes every year.1Her majesty revenue and customs2Taxation on chargeable gains act, 19923Capital allowance act, 20014Corporation Tax act, 20095Income and corporation Act, 19886Income tax (trading and other income) act, 20057Income tax Earning and Pension Act, 20038Income tax act, 20072
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
UK Tax Environment : Reportlg...
|16
|4720
|50
Report On UK Taxation Environmentlg...
|17
|4968
|303
UK TAXATION INTROUCTIONlg...
|4
|4017
|452
UK Tax Environment : Assignmentlg...
|6
|5330
|47
Assignment on Taxation- Tax system in UKlg...
|20
|4991
|140
Calculation of net profitability by P&L a/c for 2016-17 10lg...
|19
|5326
|69