ULMS Electronic Module Catalogue

The information contained in this module specification was correct at the time of publication but may be subject to change, either during the session because of unforeseen circumstances, or following review of the module at the end of the session. Queries about the module should be directed to the member of staff with responsibility for the module.
Title TAX COMPLIANCE
Code ACFI212
Coordinator Mrs CA Gregory
Finance and Accounting
Catherine.Gregory@liverpool.ac.uk
Year CATS Level Semester CATS Value
Session 2021-22 Level 5 FHEQ Second Semester 15

Pre-requisites before taking this module (other modules and/or general educational/academic requirements):

ACFI101 INTRODUCTION TO FINANCIAL ACCOUNTING 

Modules for which this module is a pre-requisite:

 

Programme(s) (including Year of Study) to which this module is available on a required basis:

 

Programme(s) (including Year of Study) to which this module is available on an optional basis:

 

Teaching Schedule

  Lectures Seminars Tutorials Lab Practicals Fieldwork Placement Other TOTAL
Study Hours   12

      12

36

60
Timetable (if known)   60 mins X 1 totaling 12
 
      60 mins X 1 totaling 12
180 mins X 1 totaling 36
 
 
Private Study 90
TOTAL HOURS 150

Assessment

EXAM Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
Timed Mock Exam Assessment Type: Written Exam Duration: 1.5 hours Penalty for Late Submission: Standard UoL penalty Applies Anonymous Assessment: Yes  1.5 hours    25       
Assessment 1: Written Unseen Examination Assessment Type: Written Exam Duration: 2.5 hours Weighting: 100% Reassessment Opportunity: Yes Penalty for Late Submission: Standard UoL penalty ap  2.5 hours    100       
CONTINUOUS Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
             

Aims

To enable students to understand, prepare and explain UK tax computations for individuals, companies and trustees including income tax, corporation tax, capital gains tax, VAT, inheritance tax, national insurance and stamp duty.
To provide an understanding of the ethical issues arising from performing in the context of taxation


Learning Outcomes

(LO1) Explain the general objectives of tax, the influences upon the UK system of tax and the different types of tax in the UK

(LO2) Recognise the ethical issues arising in the course of performing tax work and identify the obligations the UK system of tax imposes on taxpayers and the implications for taxpayers of non-compliance

(LO3) Calculate the capital gains tax payable by individuals and trustees

(LO4) Calculate the amounts of income tax owed by or owed to individuals and trustees

(LO5) Calculate the amounts of inheritance tax due on lifetime transfers and transfers on death by individuals, personal representatives and trustees

(LO6) Calculate the amounts of national insurance payable by individuals, businesses and companies

(LO7) Calculate the corporation tax liabilities of companies

(LO8) Calculate the amount of VAT owed by, or owed to, businesses

(LO9) Calculate the amount of stamp taxes due in straight forward transactions.

(S1) Adaptability

(S2) Problem solving skills

(S3) Numeracy

(S4) Commercial awareness

(S5) Organisational skills

(S6) Communication skills

(S7) International awareness

(S8) Lifelong learning skills

(S9) Ethical awareness


Teaching and Learning Strategies

Teaching Delivery: Mixed, hybrid delivery with social distancing on campus

Teaching Method: Online Asynchronous Learning Materials
Description –recordings provided online
Unscheduled Directed Student Hours: 36
Attendance Recorded: No

Teaching Method: Seminar
Description: Face to face
Scheduled Directed Student Hours: 12
Attendance Recorded: Yes

Teaching Method: Group Study
Description: Weekly 1 hour session to foster student community and engagement by working with others on their ‘active learning’ activities
Scheduled Student Hours: 12
Attendance Recorded: No

Self-Directed Learning Hours: 90 hours
Description: Homework will be set following each lecture consisting of extra reading, use of VLE resources and question practice on the topics covered. - Seminars will involve an exam style question for students to prepare and this will be reviewed during each seminar and the te chnique for answering the question will be shown. Group work will also be scheduled as part of self directed learning giving you an opportunity to work through questions and exam technique with other students.

Costs Information:
no additional costs necessary for students

This module is a pre-requisite for the following modules:
ACFI305

Skills/Other Attributes Mapping

Skills / attributes: Ethical awareness
How this is developed: Lectures, seminars, workshops
Mode of assessment (if applicable): Examination and Mid-term test

Skills / attributes: Lifelong learning skills
How this is developed: Lectures, seminars, workshops
Mode of assessment (if applicable): Examination and Mid-term test

Skills / attributes: International awareness
How this is developed: Lectures, seminars, workshops
Mode of assessment (if applicable): Examination and Mid-term test

Skills / attributes: Communication skills
How this is developed : Lectures, seminars, workshops
Mode of assessment (if applicable): Examination

Skills / attributes: Organisational skills
How this is developed: Lectures, seminars, workshops
Mode of assessment (if applicable): Examination and Mid-term test

Skills / attributes: Commercial awareness
How this is developed: Lectures, seminars, workshops
Mode of assessment (if applicable): Examination and Mid-term test

Skills / attributes: Numeracy
How this is developed: Lectures, seminars, workshops
Mode of assessment (if applicable): Examination and Mid-term test

Skills / attributes: Problem solving skills
How this is developed: Seminars, workshops
Mode of assessment (if applicable): Examination and Mid-term test

Skills / attributes: Adaptability
How this is developed: Lectures, seminars, workshops
Mode of assessment (if applicable): Examination and Mid-term test


Syllabus

 

1 - Ethics and law
Candidates will be able to recognise ethical issues arising in the course of performing tax work and identify the obligations the UK system of tax imposes on taxpayers and the implications for taxpayers of non-compliance.  
In the assessment, candidates may be required to:
a. Identify the five fundamental principles and guidance given in the IFAC Code of Ethics for Professional Accountants and the ICAEW Code of Ethics in relation to a tax practice with regard to:
         The threats and safeguards framework
Disclosure of information
Conflicts of interest
Confidentiality
b. Identify the law and the guidance in the ICAEWCode with regard to:
         New client procedures
     HM Revenue & Customs errors
          Money laundering
         Tax avoidance and tax evasion
c. Identify legal and ethical issues arising from tax work undertaken and explain the significance of these issues.

2 - Capital gains tax
Candidates will be able to calculate the capital gains tax payable by individuals and trustees. In theassessment, candidates may be required to:
a. Calculate the chargeable gains and losses on assets, including leases, shares and securities and pre 31 March 1982 assets
b. Describe the circumstances in which the following reliefs apply and calculate the effect of full or partial relief available in a given situation:
Letting relief
       Principal private residence relief
       Explain the impact of an individual’s residence, ordinary residence and domicile
      Calculate total taxa ble gains and tax payable there on, utilising available reliefs to reduce the liability, including the computation of double tax relief where appropriate.

3 - Income tax
Candidates will be able to calculate the amounts of income tax owed by or owed to individuals and trustees. In the assessment, candidates may be required to:  
Trading profits
a. Explain the relevance of the distinctionbetween revenue and capital for both receipts and expenses and apply thedistinction in a given scenario
b. Recognise the effect on trading profits of thetreatment of:
         Provisions
         Capitalised revenue expenditure
         Intangible assets
c. Calculate trading profits or losses after adjustments and allowable deductions (including capital allowances on plant and machinery).  
Unincorporated businesses
d. Calculate the assessable trading profits or losses of a partnership including after a change in the profit sharing ratio or change in partners, and allocate the profits or losses to each partner including the allocation of notional profits and losses
e. Calculate the assessable trading profits orlosses for a new unincorporated business and identify the overlap profits onthe commencement of trade
f. Calculate the final assessable trading profits or losses for an unincorporated business ceasing to trade
g. Calculate the assessable trading profits or losses of a continuing business following a change in accounting date  
Taxation of income
h. Calculate assessable employment income for an employee or director, taking into account expenses, allowable deductions and assessable benefits
i. Calculate taxable savings, income from property, dividend income, taxed income and investment income
j. Describe the principal aspects of the taxationof property income, including rent-a-room relief and premiums on short leases
k. Explain the alternative ways in which an individual can provide for retirement and calculate the tax relief available
l. Explain theimpact of an individual’s residence, ordinary residence and domicile
m. Calculate total taxable income and the income tax payable or repayable for trustees, beneficiaries, employees, company directors, partners and self-employed individuals including the computation of double tax relief where appropriate.

4 - Inheritance tax
Candidates will be able to calculate the amounts of inheritance tax due on lifetime transfers and transfers on death by individuals, personal representatives and trustees. In the assessment, candidates may be required to:
a. Explain the principles of inheritance tax and identify the different classes of taxpayer liable to pay inheritance tax
b. Explain the impact of an individual’s domicile and deemed domicile
c. Explain when the lifetime transfer of an asset gives rise to an inheritance tax liability, calculate the inheritance tax payable on chargeable lifetime transfers in straight forward scenarios and state the due date for payment
d. Calculate the death tax due on lifetime transfers and state the due date for payment
e. Calculate the value of an individual’s estate at death and the inheritance tax due and state the due date for payment
f. Describe the circumstances in which the following inheritance tax reliefs apply and calculate the amount of relief available in a given situation:
         Quick succession relief
         Taper relief
g. Calculate the interest and penalties due in respect of late payment of inheritance tax.

5 - National insurance contributions
Candidates will be able to calculate the amounts of national insurance payable by individuals, bu sinesses and companies. In the assessment, candidates may be required to:
a. Identify the different classes of national insurance contributions.
b. Calculate the national insurance due on employment income and the assessable trading profits of the self-employed.
c. Explain and apply annual maxima rules for the payment of national insurance contributions.
d. Calculate the total national insurance contributions payable by employees, employers and self-employed individuals

6 - Corporation tax
Candidates will be able to calculate the corporation tax liabilities of companies. In the assessment, candidates will be required to:
a. Explain the relevance of the distinction between revenue and capital for both receipts and expenses and apply the distinction in a given scenario.
b. Recognise the effect on trading profits of the treatment of
         Provisions
         Capitalised revenue expenditure
         Intangible asset
c. Calculate trading profits or losses after adjustments and allowable deductions (including capital allowances on plant and machinery).
d. Recognise the effect of the following issues on corporation tax payable:
         Having a period of account less than or more than 12 months in length
         Having one or more associated companies.
e. Calculate the taxable total profit and the tax payable or repayable for companies including the computation of double tax relief where appropriate.

7 - VAT and stamp taxes
Candidates will be able to calculate the amount of VAT owed by or owed to businesses and calculate the amount of stamp taxes due in straightforward transactions. In the assessment, candidates may be required to:
a. Explain the VAT consequences ofprop erty transactions
b. Explain the VAT consequences ofthe option to tax
c. Explain and calculate the VAT consequences of the capital goods scheme
d. Calculate the VAT due to or from HM Revenue & Customs for both wholly taxable and partially exempt traders
e. Explain the VAT consequences of imports and exports of goods and services to and from VAT registered and non-VAT registered entities in the EU and overseas
f. Explain the classification of supplies and the distinction between goods and services
g. Explain the VAT treatment of mixed and composite supplies
h. Identify common situations in which a liability to Stamp Duty Land Tax, Stamp Duty Reserve Tax, and Stamp Duty arises
i. Identify situations where there is an exemption from stamp taxes.
j. Calculate the amount of stamp taxes due in straightforward transactions


Recommended Texts

Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module.