Solved: UGB 225 Business Taxation

This assessment covers the following learning outcomes from the module.
Key Information

Students are required to submit their assignments through Turnitin on Canvas then to JIRA. Only assessments submitted through JIRA and Canvas will be marked.
Assignment Brief:
Canvas & JIRA Deadline: Tuesday 16th February 2021 at 14:00
Please note that this is an individual assignment and the policy of the University on “Policy on Cheating, Collusion and Plagiarism”applies.
Question 1:
Linda’s income statement for the year ended 31 March 2021 is as follows:

Notes:
a) Linda draws a salary of £200 per week from the business. This is included in the wages and salaries figure.

c) It has been agreed with HMRC that one-quarter of telephone costs and one-fifth of motor expenses relate to private use.
d) Sundry expenses include business entertaining of£520.
e) Trade debts written off in the year amounted to £440 and £200 has been set aside as a general allowance (or provision) for bad and doubtful debts.
Required:
Compute Linda’s trading profit (before deduction of capital allowances) for the year ended 31 March 2021. (25marks)
Question 2 :
a) Discuss the criteria which can be used to distinguish employment from self employment? (19 marks) b) Why do people prefer self-employment rather than being employed, resulting in so many IR 35 cases? (6 marks)
Question 3 :
a) Discuss the six badges of trade? (18 marks)
b) Briefly discuss the different VAT schemes available to the VAT registered business? (7 marks)
Question 4 :
On 23 August 2014, Peter made a gift of a house valued at £420,000 to his son, John. This was a wedding gift when John got married. The nil rate band for the tax year 2014/15 is £325,000.
Peter
Peter died on 20 March 2021 at which time his estate was valued at £880,000. Under the terms of his will, Peter divided his estate equally, before inheritance tax, between his wife and his son, John. Peter had not made any gifts during his lifetime except for the gift of the house to John. Peter did not own a main residence.
John
John sold the house which he received as a wedding gift from Peter, his father, on 5April 2021. The following information relates to the property:
£

a) Calculate the inheritance tax that will be payable as a result of Peter’sdeath. (15 marks)
b) Calculate John’s capital gains tax liability for the tax year2020/21.
(10 marks)
Guidance
Complete all the tasks in order. Consult withyour tutor if you are uncertain about any aspect of the assignment.
Submission Policies:
• You are required to submit your work within the bounds of the University Infringement of Assessment Regulations.
• Your assignment must be submitted to Canvas for Turnitin and JIRA in electronic form with an accurately and clearly completed title page.
• All Students must submit a Turnitin© report along with their assignment to JIRA. If under any circumstances the assignment is submitted without this, the final mark will be withheld and there will be potential delays.
• Students may submit drafts through Turnitin and generate reports prior to submission. The last submission prior to the deadline will be deemed to be the final submission for assessment purposes. Please note that you need to allow 24 hours between submissions through Turnitin to generate a fresh/new/different report so please do not leave submission to the last
moment.
• All works submitted MUST be original. If under any circumstances a student is found to be violating any of the ‘Academic Integrity’ rules, the university deserves the right to take legal and disciplinary actions against the individual.
• Your submission links will become available approximately 3 weeks prior to your submission deadline, along with detailed instructions on how to submit your assignment, but in the meantime please feel free to also watch this Assignment Submission Instructions video.
Word limits for assignments
If the word limit is exceeded, the following penalties apply:

• The word count includes everything except the title page and the reference list.
• Students must indicate word count (excluding title page, references and appendices) in submitted work – this word count should appear on your title page.
The word count for this assignment is 3,000 with a leniency of 10% (+/-) i.e. a maximum word count of 3,300 and a minimum of 2,700
Assessment Regulations
For further information regarding Assessment Regulations, extenuating circumstances or extensions and academic integrity, please refer to your Programme Handbook on the University of Sunderland in London information page on Canvas.
Grading
You will be marked in accordance to the University of Sunderland assessment criteria attached below.
The assessment criteria covers; Relevance, Knowledge, Analysis, Argument and Structure, Critical Evaluation, Presentation, Reference to Literature.
Generic Assessment Criteria – Undergraduate Bachelor’s degree
These should be interpreted according to the level at which you are working