Introduction to Tax and Information Systems

This module introduces students to Tax and forms the first of 2 modules covering this accredited subject. In addition, it provides hands-on use of a standard accounting software package. The module promotes the development of Abertay Attributes, particularly their intellectual and personal development while encouraging them to reflect on good citizenship.

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.
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.
5. Demonstrate the ability to use an accounting package to process a range of transactions, maintain accounting records and generate reports.

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.

5 Introduction to a standard, accounting software package

Providing individual, hands-on use of the package to gain a meaningful and practical understanding of the package features and functionality.

6 Use of a software package

Process transactions, maintain ledgers and generate reports.