AC108-Principles of Taxation

Module Provider: Business Informatics, Systems and Accounting
Number of credits: 20 [10 ECTS credits]
Level:4
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites: AC110 Introduction to Accounting
Modules excluded: AC221 Personal Tax or AC319 Business Tax
Current from: 2023/4

Module Convenor: Mrs Clare Bentata
Email: clare.bentata@henley.ac.uk

Type of module:

Summary module description:

This module introduces students to the main areas of UK taxes, including income tax, capital gains tax, corporation tax, national insurance and the ethical issues related to tax advisory work.

Aims:

To enable students to understand the general objectives of tax and to calculate income tax, national insurance contributions, capital gains tax, corporation tax and VAT in given scenarios. Students will also consider the regulatory and ethical frameworks surrounding tax work carried out in the UK.

Assessable learning outcomes:

1. Explain the general objectives of tax, the influences upon the UK system of tax, and the different types of tax in the UK.

2. Recognise the ethical issues arising in the course of performing tax work.

3. Identify the administrative obligations the UK tax system imposes on tax payers and the implications of non-compliance.

4. Calculate the amounts of income tax owed by or to individuals and the amounts of national insurance payable.

5. Calculate the capital gains tax payable by individuals and the chargeable gains subject to corporation tax.

6. Calculate the corporation tax payable by companies.

7. Calculate the amount of VAT owed by or to businesses.

Additional outcomes:

The module also aims to encourage the development of oral communication skills and the students’ effectiveness in group situations. Structured activities are designed to develop independent learning, including reflective, adaptive and collaborative learning.

Outline content:

• Introduction to income tax; employment income and benefits, trading profits (sole trader and partnership), tax allowances, calculation of tax and national insurance, and tax administration

• Introduction to capital gains tax for individuals and chargeable gains for some companies; calculation of chargeable and taxable gains

• Introduction to corporation tax; allowable and disallowable expenditure, taxable profits, calculation of corporation tax, tax administration

• Introduction to VAT; taxable and exempt supplies, calculation of input and output VAT, special schemes applicable to small businesses, VAT administration

• Influence on the UK tax system and ethical issues arising from tax advisory work

Brief description of teaching and learning methods:

Lectures will be used for the exposition of the main concepts, principles and techniques associated with the discipline. Tutorials will focus on numerical practice and discussion of examination style questions.

Contact hours:

	Autumn	Spring	Summer
Lectures		20	3
Tutorials		16
Guided independent study:
Wider reading (directed)		26
Exam revision/preparation			35
Completion of formative assessment tasks		50
Revision and preparation		24
Reflection		26
Total hours by term	0	162	38
Total hours for module	200

Summative Assessment Methods:

Method	Percentage
Written exam	100

Summative assessment- Examinations:

The exam will be an unseen exam in the Summer term and will be two hours long. 

The examination for this module will require a narrowly defined time window and is likely to be held in a dedicated exam venue.

 

Summative assessment- Coursework and in-class tests:

None

Formative assessment methods:

Formative assessments are available in the textbook for all weeks of the module to enable students to gain the necessary practice. This work is primarily designed as a learning vehicle, and students will be provided with marking guides and feedback where appropriate so that they can assess their own performance.

Penalties for late submission:

The Support Centres will apply the following penalties for work submitted late:

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;
• where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

The University policy statement on penalties for late submission can be found at: https://www.reading.ac.uk/cqsd/-/media/project/functions/cqsd/documents/cqsd-old-site-documents/penaltiesforlatesubmission.pdf
You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Assessment requirements for a pass:

A minimum mark of 40% is required for a University pass.

This module contributes to the Principles of Taxation module of ICAEW ACA Certificate level. In order to apply for ICAEW credit for prior learning, a minimum mark of 50% must be obtained on this module. 

 

Reassessment arrangements:

Reassessment is through exam only in August/September of the same year.

Additional Costs (specified where applicable):

Required text books   -  approximately £35.00 

a. Principles of Taxation (Workbook) Published by the ICAEW

b. Principles of Taxation (Question Bank) Published by the ICAEW

 

Calculator: Any non-programmable £15 

Last updated: 30 March 2023