F6 Taxation (UK). Section A: The UK tax system Section B: Income tax liabilities Section C: Chargeable gains Section D: Corporation tax liabilities Section.

Slides:



Advertisements
Similar presentations
Taxpayers Tax base Tax calculation Tax exemption Tax preferences 10. VAT (2)
Advertisements

11–1 1-1 Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Operating Decisions and the Income Statement Chapter 3.
JCQTA Forum Financial Issues THE FUN BIT! David & Lorelei Broadbent.
Република Србија, Министарство финансија - Пореска управа Belgrade April 2011 Republic of Serbia Ministry of Finance Tax Administration.
Frank Wood and Alan Sangster, Frank Wood’s Business Accounting 1, 12 th Edition, © Pearson Education Limited 2012 Slide 19.1 Chapter 19 Value added tax.
Beneby & Company Chartered Accountants Preparing for The Bahamas Government Proposed Value Added Taxes (VAT)
SELF ASSESSMENT. ORDER OF PRESENTATION: 1.WHAT IS SELF ASSESSMENT (SA). 2.WHO ARE REQUIRED TO FILL OUT SA FORM. 3.FILING & PAYMENT DATES. 4.PENALTIES.
Tax 2014/15 Personal tax allowance – £10,000 Basic rate tax (20%) – £10,000 - £31,865 Higher rate tax (40%) – £42,285 - £150,00 The Personal Allowance.
The Journal and Source Documents
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Tax Procedures for your Business by Ian Birt, Slides prepared by Peter Miller 1 Goods and Services.
McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 All rights reserved. Clinic 6-1 Accounting Clinic VI.
Sole trader and partnership tax Trading Income Application to partners VAT Stamp Duty.
Tax Administration of Self Assessment System
UGANDA LEASING ASSOCIATION ACCOUNTING AND TAXATION OF LEASING TRASACTIONS BY: IRAGUHA ADAD DATE:17 th June,2015.
Amendments brought to VAT Act & MRA Act by the Finance Act 2015
Accounting for VAT Chapter 7 © Luby & O’Donoghue (2005)
ACCF 3108 : Business and International Taxation University Of Technology Mauritius Pravesh1.
Chapter 3 (Lecture 3). Personal taxation Company taxation Capital gains tax Other taxes Double taxation South African taxation.
1 AN INTRODUCTION TO VAT. 2 What is VAT? Value Added Tax (VAT) is a form of indirect taxation It is one of many forms of taxation in the United Kingdom,
Accounting Clinic VI McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
PROVISIONAL TAX WORKSHOP.  Who is liable for Prov Tax  Registration as Prov Taxpayer  Calculation of Prov Tax  Non-compliance to Procedures POINTS.
6.3 Taxes Chapter 6. Types of Taxes Sales Taxes Accounting for taxes can be complex because of the government regulations.
1 Chapter 5-1C. Corp. Taxation Reconciliation of Book and Taxable Income Howard Godfrey, Ph.D., CPA Professor of Accounting Copyright © 2016.
UK TAXATION, VAT & ACCOUNTING REQUIREMENTS Please note that Hurkan Sayman & Co do not take any responsibility for the information used or acted upon in.
F6 Taxation (UK). Section A: The UK tax system Section B: Income tax liabilities Section C: Chargeable gains Section D: Corporation tax liabilities Section.
F6 Taxation (UK). 2 Section A: The UK tax system Section B: Income tax liabilities Section C: Chargeable gains Section D: Corporation tax liabilities.
F6 Taxation (UK). Section A: The UK tax system Section B: Income tax liabilities Section C: Chargeable gains Section D: Corporation tax liabilities Section.
F6 Taxation (UK). Section A: The UK tax system Section B: Income tax liabilities Section C: Chargeable gains Section D: Corporation tax liabilities Section.
F6 Taxation (UK). Section A: The UK tax system Section B: Income tax liabilities Section C: Chargeable gains Section D: Corporation tax liabilities Section.
PROCEDURE OF ADVANCE PAYMENT OF TAX (PPT)
GLENCOE / McGraw-Hill. Payroll Taxes, Deposits, and Reports.
F6 Taxation (UK). Section A: The UK tax system Section B: Income tax liabilities Section C: Chargeable gains Section D: Corporation tax liabilities Section.
F6 Taxation (UK). Taxation (UK) Section A: The UK tax system Section B: Income tax liabilities Section C: Chargeable gains Section D: Corporation tax.
F6 Taxation (UK). 2 Section A: The UK tax system Section B: Income tax liabilities Section C: Chargeable gains Section D: Corporation tax liabilities.
F6 Taxation (UK). 2 Taxation (UK) Section A: The UK tax system Section B: Income tax liabilities Section C: Chargeable gains Section D: Corporation tax.
F6 Taxation (UK). 2 Taxation (UK) Section A: The UK tax system Section B: Income tax liabilities Section C: Chargeable gains Section D: Corporation tax.
F6 Taxation (UK). Section A: The UK tax system Section B: Income tax liabilities Section C: Chargeable gains Section D: Corporation tax liabilities Section.
Financial Planning December 2013 Today Incorporation Assessment Bookkeeping Tax and VAT Finances Risk Social Currency.
F Designed to give you the knowledge and application of: Section C: Financial Statements C1. Statements of cash flows C2. Tangible non-current.
METAC Workshop March 14-17, 2016 Beirut, Lebanon National Accounts Compilation Issues Session 9: Taxes on products.
F6 Taxation (UK). Section A: The UK tax system Section B: Income tax liabilities Section C: Chargeable gains Section D: Corporation tax liabilities Section.
Why do People Pay Income Tax? Federal and provincial governments require ALL residents to pay a % of their income in tax (with the exemption of people.
Introduction to Value Added Tax (VAT). Indirect Tax (Value Added Tax) Learning Outcomes LO1 Understand VAT regulations. LO2 Complete VAT returns accurately.
F6 Taxation (UK). Taxation (UK) Section A: The UK tax system Section B: Income tax liabilities Section C: Chargeable gains Section D: Corporation tax.
Value Added Tax Part D Seller - tax payer Seller - tax payer Buyer - tax bearer Buyer - tax bearer Tax payable = output tax - input tax Tax payable =
Presented by Mphagahlele Ndlovu CA (SA), MCom Taxation (Wits) 18 February 2016.
By CMA. P Suresh B.Com., ACMA., Practicing Cost Accountant
GST TRANSITIONAL PROVISIONS
VALUE ADDED TAX ACCOUNTING
Value Added Tax Calculation of VAT Liability
VAT Invoices Value Added Tax
Lesson 9.3 Recordkeeping for Businesses
Public Awareness Seminar on GST
RWANDA REVENUE AUTHORITY
Business process under GST
Statutory Compliance Business Taxation - EDBA
Pay and File for Corporation Tax
Accounting Clinic VI.
Chapter 6 Advanced BAS Topics.
Income Tax Collection Income Tax Collection
ADJUSTING THE ACCOUNTS
Budget 2017 – Important Tax Implications
A guide to the fundamental principles of VAT
ACC402 - Foundation Accounting Topic 2 - INCOME TAX FOR SALARY AND WAGE EARNERS Week 4 lecture 1.
Tax Lesson 20 YOURLOGO Start Lecture
ELECTRICAL ENGINEERING
A GUIDE TO MAKING TAX DIGITAL (MTD) FOR VAT
VAT Module 10 (a) VAT Administration and Compliance
Presentation transcript:

F6 Taxation (UK)

Section A: The UK tax system Section B: Income tax liabilities Section C: Chargeable gains Section D: Corporation tax liabilities Section E: Inheritance tax Section F: National insurance contributions Section G: Value Added Tax Section H: The obligations of tax payers and/or their agents Taxation (UK)

Designed to give you the knowledge and application of: Section G: Value Added tax G1. The scope of Value Added Tax G2. The VAT Registration Requirements G3. The computation of VAT liabilities G4. The effect of special schemes

G3 : The computation of VAT liabilities  Explain how VAT is accounted for and administered. [2]  Recognise the tax point when goods or services are supplied. [2]  Explain and apply the principles regarding the valuation of supplies. [2]  The circumstances in which the default surcharge, a serious mis - declaration penalty, and default interest will be applied. [1] Learning Outcomes

G4: The effect of special schemes  The cash accounting scheme and when it will be advantageous to use the scheme. [2]  Describe the annual accounting scheme, and recognise when it will be advantageous to use the scheme. [2]  Describe the flat rate scheme, and recognise when it will be advantageous to use the scheme. [2] Learning Outcomes

Explain how VAT is accounted for and administered 6  Normally a VAT return is completed quarterly (i.e. for a period of 3 months) however the taxable person may request to submit monthly returns  Return is submitted to HMRC by the end of the month following the end of the return period.  Return also shows amount payable / repayable.  Payments should be sent with return. VAT period period covered by the VAT return VAT Return Refer to Example (Cellarage Ltd) on page 482

Tax point for transactions when a VAT invoice is issued Date invoice is issuedTime of supply (tax point) Effect of full advance payment Before the date the supply takes place (or same day) The date the invoice is issued If payment is received before the invoice is issued, tax point is the date payment received Between 1 and 14 days after the date the supply takes place The date the invoice is issued If payment is received before the date the supply takes place, tax point is the date payment received 15 or more days after the date the supply takes place The date the supply takes place If payment is received before the date the supply takes place, tax point is the date payment received Refer to Example (Shine Ltd) on page 486 Recognise the tax point when goods or services are supplied Continued…

Tax point when no VAT invoice is issued Date full payment receivedTime of supply Before the date the supply takes placeThe date the payment is received On the day when the supply takes placeThe date the supply takes place After the date when the supply takes placeThe date the supply takes place Continued…

Explain and apply the principles regarding the valuation of supplies Value of supply is the price charged by a taxable person when the supply is of goods or services VAT = (Value of supplies) x (VAT rate) Taxable turnover the total value of taxable supplies made 9 Refer to Example (Twinkle) on page 489

The circumstances in which the default surcharge, a serious mis- declaration penalty, and default interest will be applied VAT return:  Summarised information of transaction  Must be submitted to HMRC in “Form 100” for each tax period  Must be filed within 1 month of end of tax period  The period of one month gets extended by 7 days if the VAT return is filed electronically Default surcharge occurs when:  VAT return submitted late or VAT is paid late  A surcharge liability notice (SLN) is issued in respect of a default. The SLN remains in force for a period of 12 months from the end of the period in which the default occurred.  For further default, SLN period is extended to 12 months from the end of the period in respect of which the second default arose. Late payment of VAT during surcharge period Percentage of surcharge 1 st default2% 2 nd default5% 3 rd default10% 4 th default15% Refer to Example (Sun Shine Co) on page 498

The cash accounting scheme and when it will be advantageous to use the scheme Cash accounting scheme  It allows one to account for VAT on a cash receipts basis rather than an accrual basis.  A person accounts for VAT on the basis of payment received or made.  The actual date of receipt or payment will determine the return under which the transaction should be covered. Conditions to join  Value of taxable supplies in next 12 months is not expected to exceed £1,350,000  Company must be up-to-date with its VAT returns and payments  No convictions for VAT offences or assessment penalties for VAT evasion in the preceding 12 months  Businesses using the scheme must cease doing so once the value of taxable supplies in the previous 12 months exceeds £1,600,000 Refer to Example (Edward) on page 516

Describe the annual accounting scheme, and recognise when it will be advantageous to use the scheme  Only one VAT return is submitted each year  VAT dues may be paid by either of the following methods : 9 monthly payments are made on account, first one at the end of the 4th month of the year in three quarterly instalments which fall due at the end of months 4, 7 and 10.  HMRC estimates the liability for the year on the previous year’s liability  Any balancing payments must be made with return  The VAT return should be submitted within 2 months after the end of the annual accounting period.  Value of taxable supplies in the next 12 months is not expected to exceed £1,350,000  All eligible businesses can join the annual accounting scheme as soon as they register for VAT  Businesses using the scheme must cease doing so once value of taxable supplies in previous 12 months exceeds £1,600,000 Refer to Example (Peter) on page 518 Conditions for joining the annual accounting scheme

Describe the flat rate scheme, and recognise when it will be advantageous to use the scheme Important  VAT invoices issued charging VAT at either standard or zero rate  Records of input VAT suffered do not need to be kept  VAT payable to HMRC = VAT liability = Total turnover x Flat rate percentage  No input VAT is recovered  There is a reduction of 1% of the normal rate in first year of registration  Value of annual taxable supplies (excluding VAT) does not exceed £150,000  Total annual turnover, (including VAT and the value of any exempt and non-taxable income) does not exceed £187,500. Refer to Example (Neptune Ltd) on page 519 Conditions for joining

RECAP  Explain how VAT is accounted for and administered. [2]  Recognise the tax point when goods or services are supplied. [2]  Explain and apply the principles regarding the valuation of supplies. [2]  The circumstances in which the default surcharge, a serious mis - declaration penalty, and default interest will be applied. [1]  The cash accounting scheme and when it will be advantageous to use the scheme. [2]  Describe the annual accounting scheme, and recognise when it will be advantageous to use the scheme. [2]  Describe the flat rate scheme, and recognise when it will be advantageous to use the scheme. [2]