Determine taxation liabilities for unincorporated organisation and individuals and incorporated organisations

Student Name /ID Number

Unit Number and Title

Unit- 30 -Taxation

Academic Year

Spring 2019-20

Unit Assessor

Ms. Sujatha Bhat and Ms. Sujata Suresh

I. V. Name

Dr. Niranjan Shetty, Member, LIVT

Assignment Title

Determine taxation liabilities for unincorporated organisation and individuals and incorporated organisations

Issue Date

12.4.2020

Submission Date

For Formative feedback – 20.5.20

For Summative feedback -28.5.20 days after formative assignment

Actual submission date

Submission Format:

ASSIGNMENT:

The submission is in the form of an individual numerical/written report. This should be written in a concise, formal business style using single spacing and font size 12. You are required to make use of headings, paragraphs and subsections as appropriate, and all work must be supported with research and referenced using the Harvard referencing system. Provide working notes wherever required. The document must be submitted to turnitin in word document. Please provide a bibliography using Harvard referencing system if you referred any sources for theoretical parts or questions. The numbers/numerical statements and calculations must be neatly/clearly shown so that the assessor assess the work of the learner appropriately. This assignment is assessed as a written assessment and not as a presentation component.

Unit Learning Outcomes:

LO2 - Determine taxation liabilities for unincorporated organisations and individuals

LO3- Determine taxation liabilities for incorporated organisations

Assignment Brief and Guidance:

Task Summary

Mr. Frank is a Customer relationship Manager with Apex bank. The employment details of Mr. Frank is given below;

In addition to the above, Mr. Frank continues to contribute both financially as well takes part in business activities and dealings in their family business which is currently run by his brother. When it comes to decision making, it is Mr. Frank who takes the call .He has set long term plans for their business and one of the concerns he has is whether to continue the business as a sole trader or to incorporate the business as a Private Company or Public Limited company.

In case, if Mr. Frank incorporates his business as a Limited company, Mr. Frank will take 100% shares in the company and the profits will be taken as dividend by Mr. Frank.

The profit and loss account of his business for the year ended 31 March 2020 is as follows:

£ £

Following notes are relevant for the calculation of Adjusted Trading profit for Mr. Frank:

Note 1: Internet charges includes £1500, relating to internet home connection charges of Frank’s residence- personal usage.

Note 2: Lift maintenance bill includes cost of cameras and fan fitting inside the lifts £2000,

Note 3: Rent and rates consists of:

Note 4: Advertisement is incurred for:

Note 5: Gift and Entertainment expenses break up:

Note 6: Motor Car Expenses includes:

Note 7: Car Lease rent is for car with a CO2 emission of 150g/km.

Note 8: The capital allowance for the year ended 31 March 2020 is £4,900.

Mr. Frank’s other personal income for computing taxable income purpose includes: -

Annexure 1: -

Note: the above income mentioned in Annexure 1 are in addition to the income mentioned in the Profit & Loss A/c

Assume that Mr. Frank’s employment and his business details will continue to remain the same, if he continues his business either as a sole trader or as a company.

For the tax year 2019/20,

Investigate taxation liabilities when the business is unincorporated (sole trader) as well as when the business is incorporated (company).

(You may use appropriate application models and formulae wherever necessary to interpret and analyse data correctly.)

(refer to page 7and page 8 for Tax Summary )

Tax Rate for Tax year 2019/20: (Non-Saving income, Savings income & Dividend income):

(Non -Saving income, Saving income & Dividend income):

Non-Savings

Savings

Dividend

income

income

income

£1 to £5,000

20%

0%

7.5%

£5,001 to £37,500 (basic rate band)

20%

£37,501 to £150,000 (higher rate band)

40%

40%

32.5%

above £150,000 (Additional rate)

45%

45%

38.1%

Tax Rate for Tax year 2019/20:

Non-Savings income:

%

£1 to £37,500 (basic rate band)

20%

£37,501 to £150,000 (higher rate band)

40%

above £150,000 (Additional rate)

45%

Savings income:

%

£1 to £5000 (starting rate band)

0%

20%

£5001 to £37500 (basic rate band)

£37,501 to £150,000 (higher rate band)

40%

above £150,000 (Additional rate)

45%

Dividend income:

%

£1 to £37,500 (basic rate band)

7.5%

£37,501 to £150,000 (higher rate band)

32.5%

above £150,000 (Additional rate)

38.1%

CO2 emission per Km

Petrol car %

Diesel Car %

Not exceeding 50g/km

16%

20%

51 g/km to 75g/km

19%

23%

76g/km to 94g/km

22%

26%

95 g/km

23%

27%

Each complete additional 5 g/km above 95 g/km

An additional 1% is added to the 23% up to a maximum % of 37%.

 An additional 1% is added to the 27% up to a maximum % of 37%.

Merit

Distinction

LO-2 Determine taxation liabilities for unincorporated organisations and individuals

P2 Explore and explain the implications of taxation liabilities for unincorporated organisations

M2 Apply recognised models and formulae to interpret data appropriately to calculate and determine taxation liabilities for unincorporated organisations

D2 Investigate taxation liabilities and use appropriate application models and formulae to interpret and analyse data correctly

LO-3 Determine taxation liabilities for incorporated organisations

P3 Explore and explain taxation liabilities for both private and public companies

M3 Apply recognised models and formulae to interpret data and determine taxation liabilities, including late payment interest penalties, for incorporated organisations.

Task ref.

Evidence submitted

Page numbers or

description

Additional comments to the Assessor:

Learner declaration

I certify that the work submitted for this assignment is my own. I have clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice.

Learner signature: Date:

ASSESSMENT RECORD SHEET – FORMATIVE FEEDBACK

Programme

BTEC HND BUSINESS LEVEL 5

Learner name

Assignment title

Determine taxation liabilities for unincorporated organisation and individuals and incorporated organisations

Assessor name

Ms. Sujata Suresh

& Ms. Sujatha Bhat

Unit no. & title

Unit-30/Taxation

Targeted learning aims/assessment criteria

LO-2 and LO3

First Submission

Deadline

Date submitted

Targeted criteria

Criteria achieved

Assessment comments

P2

M2

P3

M3

D2

General comments

Assessor declaration

I certify that the evidence submitted for this assignment is the learner’s own. The learner has clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice.

Assessor signature

Date

Date of feedback to learner

Resubmission authorisation

by Lead Internal Verifier*

Date

* All resubmissions must be authorised by the Lead Internal Verifier. Only one resubmission is possible per assignment, providing:

· The learner has met initial deadlines set in the assignment or has met an agreed deadline extension.

· The tutor considers that the learner will be able to provide improved evidence without further guidance.

· Evidence submitted for assessment has been authenticated and accompanied by a signed and dated declaration of authenticity by the learner.

**Any resubmission evidence must be submitted within 15 working days of receipt of results of assessment.

ASSESSMENT RECORD SHEET - RESUBMISSION – SUMMATIVE FEEDBACK

Deadline

Date submitted

Targeted criteria

Criteria achieved

Assessment comments

P2

M2

P3

M3

D2

General comments

Learner Declaration

I certify that the evidence submitted for this assignment is my own. I have clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice.

Learner signature

Date

Assessor declaration

I certify that the evidence submitted for this assignment is the learner’s own. The learner has clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice.

Assessor signature

Date

Date of feedback to learner

ASSESSMENT RECORD SHEET - RETAKE – (for QCF only)

Programme

BTEC HND BUSINESS LEVEL 5

Learner name

Assignment title

Determine taxation liabilities for unincorporated organisation and individuals and incorporated organisations

Assessor name

Ms. Sujata Bhat &

Ms Sujata Suresh

Unit no. & title

Unit -30/Taxation

Targeted learning aims/assessment criteria

Deadline

Date submitted

Targeted Pass criteria

Criteria achieved

Assessment comments

P2

M2

P3

M3

D2

General comments

Learner Declaration

I certify that the evidence submitted for this assignment is my own. I have clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice.

Learner signature

Date

Assessor declaration

I certify that the evidence submitted for this assignment is the learner’s own. The learner has clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice.

Assessor signature

Date

Date of feedback to learner