Advanced Personal TaxationCoursework

1. SUBMISSION
This report has a 60% weighting in calculating your overall module mark. It must be electronically produced.

It must be uploaded to Moodle Submission Inbox byFRIDAY 15th APRIL 2016. You must keep a duplicate copy of all work submitted for assessment.

2. Specific instruction relating to the coursework

(a) For your guidance – the report should include the following:

– Title/cover (including the name/number of the course, the name of the module and coursework, your name and student number, the date and the word-count)
– Page of contents
– Main body of report (Parts one, two and three)
– Bibliography (using Harvard style of referencing)
– Appendices.

(b) The attention of every student is drawn to the warning in the course guide on late submission of coursework, mitigating circumstances and plagiarism. For guidance on copyright and referencing see the following section ‘Guidance on referencing’.

(c) It should be noted that 10% of the marks is reserved for the quality of presentation as reflected by the bibliography, reference citations in text and cross referencing. 
Guidance on referencing
(Supplied by Academic Misconduct Officer)

Correct referencing is an academic skill that you will be assessed on.

Correct referencing demonstrates that you have read appropriately on the subject, shows that you are acknowledging the sources you have used (that you are not trying to cheat) and provide information on useful sources of information to your reader.

Doing it correctly demonstrates professionalism. Doing it incorrectly will lead to reduced marks and possibly to disciplinary action, which includes the possibility of having your studies terminated.

I do see cases where the student has clearly deliberately attempted to cheat. These are dealt with very firmly. However, most cases I see are where students have either referenced poorly or not bothered with referencing at all. Otherwise good work often fails in these circumstances.

Guidance on referencing itself is available from the resources listed at the end of this sheet. If you have any concerns about your referencing ask for help before submitting.

Checking your referencing
You are required to upload your coursework to the Advanced Personal TaxationMoodle site BAF_6_APT_1516. Use this site for checking your work for matching text. This will reveal where you have not fully referenced. You will need to reference correctly or remove the matching text from your final submission. The matching source given by the check may not be the one that you used. Make sure you use the Library Help sheets to guide you on correct referencing (style: Harvard).
When you submit your coursework you must submit a copy of the latest matching Turnitin report.
The version to submit is the ‘Show highest matches first’ version (the one with numbers in the boxes) as this is the easiest for you to check your work. When you look at your report (use the ‘Show highest matches first’ version) you will see that there is a list of sources on the right that match (numbers in boxes) to the highlighted text on the left.
Remember, the point of this exercise is not to remove all matching text, but to make sure that it is properly referenced.

If you have a match of 1% or less, this will almost certainly be because of coincidence. We are not concerned about matches of 1% or less. You do not have to do anything about these.

You need to look at all matches of 2% and above. Where there is such material that is matching you must ensure it is referenced or remove it from your work.

Points to note:

1. The source given in Turnitin may not be the source you used. Reference where you got the material.

2. If it is a quote make sure you have used quotation marks and give the page number from the source in your reference too.

3. If you have rewritten somebody’s words (this is called paraphrasing) you must reference the source. You may see this in your report as bits of matching text in a paragraph.

4. If the match given is to another student (either at LSBU or another University), you have probably both used material from a textbook. Make sure you have referenced the material correctly to the textbook you have used.

5. If it matches to another student because you have worked together you are almost certainly going to have to remove it. In an individual coursework this would be seen as academic misconduct, in a group coursework it may be appropriate, but check your submission requirements.

6. If you have used material from a source and the Turnitin check does not show it you still must reference it. Thousands of new sources are added to Turnitin every day.

Further help is available on all academic matters from the ‘Academic Assistant’ at http://www.blc.lsbu.ac.uk/aa/aa/

Advanced Personal TaxationCoursework

You must display your date of birth prominently on the front page.

WORK TO THE NEAREST £.

IGNORE VALUE ADDED TAX.

PART ONE–Self Employed Tax Calculation
Isabelle has started her own business as an Office Personnel Recruitment Agency (‘Froggy Recruitment’), and has asked for your help in respect of her tax affairs.

Your month and year of birth will trigger the amount of the gross profits for the period and also the date the business commenced.

Froggy Recruitment has prepared accounts for the period ending 30 June 2015 based on the following information.

GROSS PROFIT FIGURE
Take your month and year of birth in 2 digit form, reverse them, and multiply by 10 – this will give you the accounting gross profit figure

If you were born in March 1995 = 95, 03, x 10 = £95,030.

If you were born in September 1984 = 84, 09, x 10 = £84,090.

MONTH BUSINESS COMMENCED
We are going to assume that your business commenced on the 1stday of the month 2014that you were born unless you were born in March or April. Then we shall assume that your business commenced in either September (for March) or October (for April).

If you were born in November 1992 – business commenced 1 November 2014.

If you were born in July 1994 – business commenced 1 July 2014.

If you were born in February 1990 – business commenced 1 February 2014.

If you were born in March 1995 – business commenced 1 September 2014.

If you were born in April 1993 – business commenced 1 October 2014.

EXPENSES
Expenses are expressed as a percentage of your gross profit – you can turn them into £ values by inserting your birth driven gross profit.WORK TO THE NEAREST £.

 
Financial Accounts for Froggy Recruitment for period ended 30 June 2015.
£
Gross Profit (based on date of birth) 100%

Add
Rental Income 10%

Less
Depreciation 8%
Wages and salaries 10%
Rent and other expenses 20% (Note 1)
Utility costs 12%
Printing & Stationery 5% (Note 2)
Motoring expenses 7%(Note 3 )
62%
Net Profit 48%

NOTES TO THE ACCOUNTS.

1. Other expenses include:
• Membership fees (£1,200) of the professional body to which Isabelle belongs.
• Interest on late payment of income tax (£500).
• Legal fees incurred in respect of the new 5 year lease on her office building (£3,000)

2. Printing costs include a gift of fleece jackets bearing the name ‘Froggy Recruitment’ to Isabelle’s top 50 customers (£3,100).

3. All motoring expenses relates to business usage. The expenses include the fee for the lease of a Mazda CX5 2.2d SKYACTIV 150 StopStart EU6 SE-L SNav Autofor 3 months at a cost of £1,400.

4. Capital Allowances: The only two capital items that Isabelle’s business acquired were:

• A new motor car with a cost of approximately £20,000 (YOUR CHOICE). The car was deemed to be used 20% for private mileage. The car was acquired 3 months after the business commenced.

• A desktop PC and accessories, costing £4,000.

 
Other Matters

1. Isabelle paid £5,000 into a personal pension plan on 1 May 2015.

2. Isabelle owns a rental property in Westminster and the net taxable income figure on that property is as shown in the accounts above. When the 18 year lease was signed in July 2015, the tenant paid Isabelle a premium of £60,000.

3. Isabelle received dividend income of £9,000 from her shares in Barclays Bank and £4,000 of interest on a savings account

4. Isabelle was liable for Class 2 and Class 4 national insurance contributions.

5. If necessary, assume Isabelle’s business will make a taxable profit of £60,000 for the accounting year-ended 30 June 2016.

REQUIRED
Calculate Isabelle’s tax liability for the tax year 2015/16.

25 marks

PART 2
Prepare a report for Isabelle that explains your calculations. Isabelle has very little knowledge of taxation and would appreciate a report that was not too technical.

(25 marks –800 words)

PART 3– Choice of Accounting Date (Year-End)
A friend of yours (Peter) is about to start his own business and he has been chatting to you for advice about financial and taxation aspects of his new venture.

He has now asked you for some specific advice about which accounting date to choose when he is preparing his accounts. He understands there are a number of factors to consider from the view point of taxation.

REQUIRED:
Write a report that discusses all the implications arising from particular accounting dates. Factors such as overlap profits, time delay in paying the tax liability and tax planning need to be covered in your report.

Your report should be written in user friendly terms that Peter (not a tax expert) can understand

(20 marks – 750 words)

 
ANSWER EITHER PART 4 or PART 5

PART 4
The accounting firm you work for have asked you to produce a client guide on ‘Trading Losses for the Self-Employed’. The guide must cover all relevant areas and should be written in a concise way that addresses the level of understanding of the likely readers,

REQUIRED
Produce the client guide as suggested above.

(20 marks – 750 words)

PART 5
Peter has recently inherited £100,000 and intends to save the majority of this amount.

However, he does have a strong aversion to paying tax. He would like to know what options he has in terms of making tax- efficient savings.

REQUIRED
Write a report for Peter that explains the options he has in terms of investing his money.

(20 marks – 750 words)

Presentation (10 marks)

Bibliography and referenced citations in text and cross referencing 5 marks.

General presentation and English 5 marks.