• Interpret the fundamental principles of taxation and the statutory obligations of taxpayers.
• Calculate income tax liabilities for individuals with diverse income sources.
• Compute corporation tax for limited companies, including adjustments for disallowable expenses.
• Master the calculation of capital gains tax and value-added tax (VAT) within various business scenarios.
• Develop the ability to identify tax-efficient strategies while maintaining strict ethical and legal standards.

Upon successful completion of this course, students will be able to:

1. Calculate the personal income tax liability for employees and self-employed individuals.
2. Determine taxable profits for businesses by adjusting accounting profits for tax purposes.
3. Compute capital gains and losses for individuals and companies upon the disposal of assets.
4. Prepare VAT returns and understand the implications of different VAT schemes.
5. Apply current tax legislation to ensure accurate and timely filing of tax computations.

Module 1: Introduction to Taxation & Income Tax

• The Tax System: Overview of direct vs. indirect taxes and the role of the tax authorities.
• Employment Income: Calculating gross pay, taxable benefits (benefits in kind), and allowable expenses.
• Personal Allowances: Applying thresholds and calculating the final tax liability across different tax bands.
• National Insurance/Social Security: Understanding contributions for both employees and employers.

Module 2: Taxation of Business Profits (Sole Traders)

• Trading Income: Adjusting accounting profit to taxable profit (add-backs and deductions).
• Capital Allowances: Calculating tax depreciation on plant, machinery, and motor vehicles.
• Basis of Assessment: Understanding the commencement, cessation, and change of accounting dates.
• Relief for Business Losses: Strategies for carrying losses forward or offsetting them against other income.

Module 3: Corporation Tax

• Taxable Total Profits: Combining trading income, investment income, and capital gains for companies.
• Chargeable Gains for Companies: Indexation allowances and the disposal of business assets.
• Quarterly Installment Payments: Understanding the payment deadlines for large vs. small companies.
• Group Relief: An introduction to transferring losses between companies within the same group.

Module 4: Capital Gains Tax (CGT) & Inheritance Tax

• Scope of CGT: Identifying chargeable assets, exempt assets, and chargeable persons.
• Computation of Gains: Calculating proceeds, allowable costs, and enhancement expenditure.
• CGT Reliefs: Applying Business Asset Disposal Relief (BADR) and Rollover Relief.
• Inheritance Tax (IHT) Basics: Understanding taxable estates, lifetime transfers, and exempt transfers.

Module 5: Value Added Tax (VAT) & Ethical Compliance

• VAT Principles: Input tax vs. output tax and the concept of “taxable supply.”
• Registration & Returns: Mandatory vs. voluntary registration and the completion of VAT returns.
• Special Schemes: Flat rate schemes, cash accounting, and annual accounting.
• Ethics in Tax: Distinguishing between tax avoidance and tax evasion; the importance of professional integrity.

Project