Brief History on UK Tax System | Assignment
6 Pages1313 Words258 Views
Added on 2019-10-16
Brief History on UK Tax System | Assignment
Added on 2019-10-16
ShareRelated Documents
Running Head: UK TAX SYSTEM 1TitleAssignment: UK TAX SYSTEM1 | Page
UK TAX SYSTEM2Brief History on UK Tax SystemBefore starting the discussion about the history of the UK taxation we can define taxes as acompulsory charge, levied by the government, on income or expenditure.First tax in British history which was levied directly on people's earnings was the IncomeTax. It was firstly imposed in 1798 by the Prime Minister William Pitt the Younger, Atthat time Income tax was levied for small period mainly to cover the cost of the NapoleonicWars & abolished in 1802. Again, the income tax was reintroduced by Addington in 1803 but abolished in 1816.Onemore time again it was reintroduced in 1842 by Sir Robert Peel (Freedman and Vella, 2017)& still is in existence as of now. Corporation tax, Finance Act 1965make significant change in tax structure for companiesand associations with a single corporate tax, Although basic tax structure and rules are sameas in earlier the income tax system. Introduction of corporation tax & above changes wereconsolidated by theIncome and Corporation Taxes Act 1970 with the schedules under whichtax is levied have changed. The tax year in UK Tax System is from 6 April to 5 April of next year. Statement ofIncome Tax liabilities that is filed with theHM Revenue & Customsdeclaring liabilityfortaxation. SA 100 is for individuals payingIncome Tax&CT600 for corporation(SimpleTax, 2017).Element in Statement of Income Tax Liabilities For Individuals(SA 100)Personal Details b) Income earned in Employment c) Income Earned from Self EmployedBusiness d) Income Earned as partner in Partnership Business e) Capital Gainf) IncomeEarned as trustee g) Foreign Income h) Interest & dividends from Banks i)UK Pensions,annuities and other state benefits receivedj) Tax Reliefs k) Charitable giving l) Informationabout Student loan repayments (Gov.uk., 2017b).***Other Important Points1.On the income of £123,000 or above Personal Allowance will be Nil & the same reduceby £1 for every £2 when youradjusted net incomeis above £100,000. 2.There is no tax on saving Interest & Dividend Income.2 | Page
UK TAX SYSTEM3Income Tax Rates for 2017-18Taxable incomeTaxrate0£- £11,5000%£11,501- £45,00020%£45,001 - £150,00040%over £150,00045%Statement of Income Tax liabilities for Corporations (CT600) Companies registered in UK are taxable on their income earned within UK and also fromoutside the UK. Non- resident UK companies are liable to corporate tax only on the tradingprofits attributable to a UK. A.Income Tax Rate for Corporation Basic rate of corporation tax is 19% for the year beginning 1 Apr 2017.For Companies taxable profits mainly include the money a earn from:Business called operating profits InvestmentsAnd from the sale of assetsSome expenses aren’t allowed for Corporation Tax, for example entertaining clients - addthese back to your profits when youprepare your Company Tax ReturnB.Capital allowancesFor the assets that you used in business capital allowancescan be claimed like for Plant &machinery business vehicles.3 | Page
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
UK Tax System History Assignmentlg...
|6
|1395
|168
Assignment UK Tax System Essaylg...
|4
|1347
|182
Essay on UK Tax System Assignmentlg...
|4
|1409
|134
Assignment on Taxation in UKlg...
|24
|5080
|35
(solved) Taxation Assignment PDFlg...
|10
|2368
|32
Taxation Law: Letter of Advice and Work Paperslg...
|9
|1242
|453