Taxation Principles and Concepts (Taxation) - Coursework Example

Only on StudentShare

Extract of sample
Taxation Principles and Concepts (Taxation)

A capital allowance refers to the amounts in cash that a business operating in the United Kingdom can deduct from the overall income tax on its profits or the corporate tax. The sources of these sums of money come from certain purchases as well as investments as outlined in the Capital Allowances Act of 2001 (Channer & Rogers 2007, p.xiv). A business or corporate organization can claim capital allowances on the costs of cars, vans and machines purchased for business use, or other assets in the business such as scaffolding, equipment, ladders, furniture, computers, and tools. In addition, a business can also claim capital allowances on the expenditures incurred on plant and machinery, as well as, on facilities and equipment used for research and development, and items that a business operator uses privately before using them commercially. Another capital deduction occurs on the premises used for the company to run its business, such as improving a property, and converting a space above a building for rental purposes. As for your case Tobby, you can claim capital allowances on the following items: computers, car, premises and rent for Tamara. The capital allowance on computers is ? 200, car as ? 2,700, premises at ? 12, 5000 and Tamara’s rent at ? 4,000. As such, the total capital allowance that Tobby can claim from the tax authority is ? 19,400 (Dunn & Rogers 2008, p.664). ...
Download paper

Summary

Taxation Principles and Concepts (Taxation) By Code+ University Name Taxation Principles and Concepts (Taxation) FIRST REQUIREMENT Dear Tobby, Hello, my friend. It has been a long time since we last met at campus…
Author : jhalvorson

Related Essays

Taxation
50,760.34 Salary - Tax - NIC Tax brackets Income 10% (starting rate for savings only) 0 - ?2,560 20% for basic rate 0 - ?35,000 40% for higher rate ?35,001 - ?150,000 50% for additional rate Over ?150,000 (HM revenue and Customs 480 (2011) The liability of income tax payable from the above computation is ?25,718.3. A deduction of personal allowance of 7,475 is made in the year 2011/2012 (Great Britain: Parliament: House of Commons: Treasury Committee, 2011,103). This figure was increased by ?1000 (Budget, 2011, pp.1).The National insurance Contributions (NICs) are calculated under the annual...
8 pages (2008 words) Essay
Taxation
Whether someone is employed or self employed depends upon the terms and conditions of relevant engagement. The tax and National Insurance contributions (NICs) rules do, however have special rules that apply to certain special categories of workers in certain circumstances. If you work for someone else it is important to know whether you are working for that person in employed capacity or in a self- employed capacity as an independent contractor.” (HMRC)ii Self employed taxpayers have the advantage of claiming wide range of expenses against the receipts of self employment services. “The...
6 pages (1506 words) Non-word Assignments
Taxation in UK
The paper tells that the Largest source of revenue collection for government is income tax. Everyone in the country has an income tax personal allowance below which he does not have to pay tax in a particular tax year. For people aging below 65 years have a tax allowance of £6,475 in 2010-11. However, in June 2010, this figure has been increased by £1,000 by the Chancellor therefore the tax personal allowance is £7,475. If anyone has an income below the income tax personal allowance, he is not supposed to pay any tax however if the earnings of an individual is above the tax allowance then...
12 pages (3012 words) Essay
International Taxation Essay
Essentially, this means that a multinational company with hundreds of companies worldwide is not regarded as a single economic entity but rather as an amalgam of independent tax paying companies1. There has been intense debate on whether it would be wise for the international taxation to be changed to allow for the holding company to pay the group’s consolidated tax. The proponents of this argument state that it would be much more convenient and efficient for consolidated tax returns as applicable to multinational companies. Anti-avoidance legislation Tax avoidance can be defined as the...
8 pages (2008 words) Essay
Taxation
Back in 2002, the government introduced new reforms on company cars. The company car tax reform encourages people to buy of choose cars with lower levels of carbon dioxide (CO2) emissions. Purposely, the reforms are aimed at tackling changes in climate and greenhouse gas emissions. Also, it also encourages manufacturers to introduce greener cars. As a result, businesses should evaluate their current fleet arrangements and especially those that emit carbon in order to minimize costs. The Government also aims at increasing its revenue (Melville 2012). It has already estimated additional...
5 pages (1255 words) Essay
Business taxation
Understanding Revenue and Capital Expenditures Revenue expenditures such as rent of premises for conducting business, employee wages, raw materials and many such items are ongoing expenditures that are necessary to generate business profits. Revenue expenditure is also known as circulating capital that means capital changes hands to produce profit and loss. On the other hand, capital expenditures such as purchasing land or building, plant and machinery or goodwill form a long-term expenditure that accrue benefits until its useful life. The Statute ICTA88/S74 (1) (a) provides that only those...
8 pages (2008 words) Essay
Taxation
These two systems worked independently in the past and the tax authorities maintained separate tax systems for income tax and national insurance contributions. Income tax was taxed annually in a progressive manner on individuals and corporate bodies whereby low income earners were taxed lower than high income earners (UK Government, 2012). The tax rates increased with increase in incomes of individuals. On the other hand, benefits are payments to individuals by the state. They are paid to individuals through the bank, credit union account or building societies. If one does not have any of...
8 pages (2008 words) Assignment
Got a tricky question? Receive an answer from students like you! Try us!