AC207-Principles of Tax

Module Provider: Business Informatics, Systems and Accounting
Number of credits: 20 [10 ECTS credits]
Level:5
Terms in which taught: Autumn term module
Pre-requisites: AC101 Introduction to Accounting or AC105A Introductory International Financial Accounting A and AC105B Introductory International Financial Accounting B
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Module version for: 2017/8

Module Convenor: Mr Posi Olatubosun

Email: o.olatubosun@reading.ac.uk

Summary module description:
This module introduces students to the main areas of taxation.

Aims:
To enable students to understand the general objectives of tax and to calculate income tax, national insurance contributions, capital gains tax, corporation tax and VAT in straightforward scenarios. Students will also consider the regulatory and ethical frameworks surrounding tax work carried out in the UK.

Assessable learning outcomes:

By the end of the module it is expected that students will be able to:



1. Explain the general objectives of tax, the influences upon the UK system of tax, and the different types of tax in the UK.



2. Recognise the ethical issues arising in the course of performing tax work.



3. Identify the administrative obligations the UK tax system imposes on tax payers and the implications of non-compliance.



4. Calculate the amounts of income tax owed by or to individuals and the amounts of national insurance payable.



5. Calculate the capital gains tax payable by individuals and the chargeable gains subject to corporation tax.



6. Calculate the corporation tax payable by companies.



7. Calculate the amount of VAT owed by or to businesses.


Additional outcomes:
The module also aims to encourage the development of professional skills including oral communication skills and the students’ effectiveness in group situations. Structured activities are designed to develop independent learning.

Outline content:

• General objectives of tax, types of tax, influences on the UK tax system, and ethical issues



• Introduction to income tax; employment income and benefits, trading profits (sole trader and partnership), tax allowances, calculation of tax and national insurance, tax administration



• Introduction to capital gains tax for companies and individuals; calculation of chargeable and taxable gains



• Introduction to corporation tax; allowable and disallowable expenditure, taxable profits, calculation of corporation tax, tax administration



• Introduction to VAT; taxable and exempt supplies, calculation of input and output VAT, special schemes applicable to small businesses, VAT administration


Brief description of teaching and learning methods:
Lectures will be used for the exposition of the main concepts, principles and techniques associated with the main topic areas. Workshops will focus on numerical practice and discussion of examination style questions.

Contact hours:
  Autumn Spring Summer
Lectures 20 3
Practicals classes and workshops 16
Guided independent study 161
       
Total hours by term 197.00 3.00
       
Total hours for module 200.00

Summative Assessment Methods:
Method Percentage
Written exam 80
Class test administered by School 20

Other information on summative assessment:

Formative assessment methods:
Formative assessments are available in the workbook for all weeks of the module to enable students to practice techniques and exam style questions. This work is primarily designed as a learning vehicle, and students will be provided with marking guides and feedback where appropriate so that they can assess their own performance.

Penalties for late submission:
The Module Convenor will apply the following penalties for work submitted late, in accordance with the University policy.

  • where the piece of work is submitted up to one calendar week after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for the piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;
  • where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

  • The University policy statement on penalties for late submission can be found at: http://www.reading.ac.uk/web/FILES/qualitysupport/penaltiesforlatesubmission.pdf
    You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

    Length of examination:
    One 2 hour closed book unseen written exam in the Summer term.

    Requirements for a pass:
    A minimum mark of 40% is required for a University pass.

    This module contributes to the Principles of Taxation module of the ACA Professional Stage Knowledge level. In order to apply for ICAEW credit for prior learning, a minimum mark of 50% must be obtained on this module.

    Reassessment arrangements:
    Reassessment is by examination only in August / September of the same year.

    Additional Costs (specified where applicable):


    1. Principles of Taxation (Study Text) Published by the ICAEW

    2. Principles of Taxation (Question Bank) Published by the ICAEW



    Both materials are needed by students, and the total cost of the two via https://www.gillards.com/icaew/Shop.aspx is £30.00


    Last updated: 31 March 2017

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