AC319-Business Tax

Module Provider: Business Informatics, Systems and Accounting
Number of credits: 20 [10 ECTS credits]
Level:6
Terms in which taught: Autumn term module
Pre-requisites: AC110 Introduction to Accounting and AC221 Personal Tax
Non-modular pre-requisites:
Co-requisites:
Modules excluded: AC108 Principles of Taxation
Current from: 2023/4

Module Convenor: Mrs Alice Bowen
Email: alice.bowen@henley.ac.uk

Type of module:

Summary module description:

This module builds on the knowledge acquired in AC221 Personal Tax and introduces students to the main areas of UK taxes applicable to businesses, including income tax, capital gains tax, corporation tax, national insurance and VAT. 

Aims:

To enable students to understand and calculate the taxes arising as a result of running a business as a sole trader, a partnership or via a limited company. To calculate income tax, national insurance contributions, capital gains tax, corporation tax and VAT in given scenarios and to apply the reliefs available. 

Assessable learning outcomes:

1. Identify the administrative obligations the UK tax system imposes on different businesses. 

2. Calculate the amounts of income tax owed by or to individuals on income from self-employment. 

3. Calculate the amounts of national insurance payable by businesses. 

4. Calculate the capital gains tax payable by individuals and the chargeable gains subject to corporation tax. Explain and apply the business reliefs available on chargeable gains. 

5. Calculate the corporation tax payable by companies. 

6. 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 trading profits (sole trader and partnership), including adjustment to profits, capital allowances, basis periods and losses. 

• Capital gains tax for?individuals and chargeable gains for companies; including calculation of losses and business reliefs. 

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

• Groups of companies 

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

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. 

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:

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 Module Convenor will apply the following penalties for work submitted late:  

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  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[1] (or part thereof) following the deadline up to a total of five working days;  

  
  


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  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: http://www.reading.ac.uk/web/FILES/qualitysupport/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. 

If accreditation is offered by the ACCA for this module it will contribute to the Taxation module of the?ACCA Applied Skills level. In order to apply for an exemption from the ACCA a minimum mark of 50% must be obtained on this module and the AC221 Personal Tax module. 

Reassessment arrangements:

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

Additional Costs (specified where applicable):

Required textbooks? ?-?approximately £40.00 plus postage and packing and VAT 

Any non-programmable calculator 

Last updated: 12 September 2023