Module details for Introduction to Tax

Description

This module introduces students to Tax and forms the first of 2 modules covering this accredited subject.

Aims

The aim of this Module is to provide the student: with the ability to make the relevant calculations relating to income and national insurance.

Learning Outcomes

By the end of this module the student should be able to:

1.  Demonstrate an understanding of the structure and administration of the UK tax system as it affects individuals and incorporated businesses;

2.  Calculate the Income Tax due on the income of an employed individual with other sources of income;

3.  Demonstrate an understanding and calculate the basis periods for trading income of self-employed businesses and partnerships;

4.  Compute an employer’s liability for National Insurance in respect of the employee and employer.

Indicative Content

1 Introduction to taxation:

General introduction to UK tax system; Administration of tax system; Tax evasion; Tax avoidance; HMRC Charter; Introduction to Income tax.

2 Taxation of the individual:

Sources of income; Basis of assessment and allowable expenditure; Capital expenditure; Personal allowances and reliefs;; Employee’s liability for National Insurance contributions.

3 Income from employment:

Basis of assessment; Employment income; Non-taxable employment income; Deductible expenses;

4 Income from self-employment:

The calculation of trading profits; Disallowed and allowable expenditure; Trading income allowance ; Basis periods for trading income; Commencement of trade; Cessation of trade; Change of accounting date; Capital allowances; Trading losses and relief; partnerships.

Teaching and Learning Work Loads