UGB 225 Business Taxation
Alternative Assessment 2020/21
Canvas & JIRA Deadline: Tuesday
Outcomes Assessed: All
This assessment covers the following learning outcomes from themodule.
Length: Answer ALL QUESTIONS .This is an individual assignment of 3,000 words. (+ or – 10%)
Weighting: 100% of the marks for the module
Students are required to submit their assignments through Turnitin on Canvas then to JIRA. Only assessments submitted through JIRA and Canvas will be marked.
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:|
|Less: Cost of Sales||37,200|
|Add: Rents receivable||1,200|
|Bank interest receivable||80|
|Profit on sale of non-current asset||510||1,790
|Less: Wages and salaries||22,620|
|Business rates and insurance||1,750|
|Heating and lighting||2,170|
|Repairs and renewals||4,280|
|Bad and doubtful debts||640|
|Credit card interest||120|
|Loss on sale of non-current asset||70|
Depreciation 2,500 39,930
Net profit for the year 7,160
- Linda draws a salary of £200 per week from the business. This is included in the wages and salaries figure.
- Repairs and renewals are as follows:
Decorating of business premises 400
Installation of new improved heating system 3,800
Minor repair 80
- It has been agreed with HMRC that one-quarter of telephone costs and one-fifth of motor expenses relate to private use.
- Sundry expenses include business entertaining of£520.
- 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 doubtfuldebts.
Compute Linda’s trading profit (before deduction of capital allowances) for the year ended 31 March 2021. (25 marks)
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 :
- Discuss the six badges of trade? (18 marks)
- Briefly discuss the different VAT schemes available to the VAT registeredbusiness?
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 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 ofthe house to John. Peter did not own a main residence.
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:
Net sale proceeds after costs of disposal 496,400
Cost of new boundary wall around the property (there was
previously no boundary wall) (5,200)
Cost of replacing the property’s chimney (2,800)
John has taxable income (after deduction of the personal allowance) of £13,950in 2020/21. The house was never occupied by John.
- a) Calculate the inheritance tax that will be payable as a result of Peter’sdeath.
- b) Calculate John’s capital gains tax liability for the tax year 2020/21.
Complete all the tasks in order. Consult withyour tutor if you are uncertain about any aspect of the assignment.
- 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 Instructionsvideo.
Word limits for assignments
If the word limit is exceeded, the following penalties apply:
|Exceeds word limit by up to 10%||No Penalty – tolerance band|
|Exceeds word limit by 10.1-20%||5 percentage points deduction|
|Exceeds word limit by 20.1-30%||10 percentage points deduction|
|Exceeds word limit by 30.1-40%||15 percentage points|
|Exceeds word limit by 40.1-50%||20 percentage points deduction|
|Exceeds word limit by more than 50%||Mark of zero|
- 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
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.
You will be marked in accordance to the University of Sunderland assessment criteria attachedbelow. The assessment criteria covers; Relevance, Knowledge, Analysis, Argument andStructure, Critical Evaluation, Presentation, Reference to Literature.
Generic Assessment Criteria – Undergraduate Bachelor’s degree
These should be interpreted according to the level at which you areworking
|Grade||Relevance||Knowledge||Analysis||Argument and Structure||Critical Evaluation||Presentation||Reference to Literature|
|The work examined is exemplary and provides clear evidence of a complete grasp of the knowledge, understanding and skills appropriate to the Level of the qualification. There is also unequivocal evidence showing that all the learning outcomes and responsibilities appropriate to that Level are fully satisfied. At this level it is expected that the work will be exemplary in all the categories cited above. It will demonstrate a particularly compelling evaluation, originality, and elegance of argument, interpretation or discourse.|
|76-85%||The work examined is excellent and demonstrates comprehensive knowledge, understanding and skills appropriate to the Level of the qualification. There is also excellent evidence showing that all the learning outcomes and responsibilities appropriate to that level are fully satisfied. At this level it is expected that the work will be excellent in the majority of the categories cited above or by demonstrating particularly compelling evaluation and elegance of argument, interpretation or discourse and there may be some evidence of originality|
70 – 75%
|The work examined is of a high standard and there is evidence of comprehensive knowledge, understanding and skills appropriate to the Level of the qualification. There is also clearly articulated evidence demonstrating that all the learning outcomes and responsibilities appropriate to that level are satisfied At this level it is expected that the standard of the work will be high in the majority of the categories cited above or by demonstrating particularly compelling evaluation and elegance of argument, interpretation or discourse.|
60 – 69%
|Directly relevant to the requirements of the assessment||A substantial
knowledge of relevant material, showing a clear grasp of themes, questions and issues therein
|Good analysis, clear and orderly
|Generally coherent and logically structured, using an appropriate mode of argument and/or theoretical mode(s)||May contain some distinctive or independent thinking; may begin to formulate an independent position in relation to theory and/or practice.||Well written, with standard spelling an grammar, in areadable style with acceptable format||Critical appraisal of up- dtodate and/or appropriate terature. Recognition of different perspectives. Very good use of sourcematerial.
Uses a range of sources
|The evidence provided shows that the majority of the learning outcomes and responsibilities appropriate to that Level are satisfied – for compensation consideration.|
|Some correlation with the
requirements of the assessment butthere are instances of irrelevance
|Basic understanding of the
subject but addressing a limited range of material
|Largely descriptive or narrative, with
little evidence o analysis
|A basic argument is evident, but mainly supported by assertion and there may be a ack of clarity and coherence||Some evidence of a view starting to be formed but mainly derivative.||A simple basic style but with significant deficiencies in expression or format that may pose obstacles for the reader||Some up-to-date and/or appropriate literature used. Goes beyond the material tutor has provided. Limited use of sources to support a point.|
|Relevance to the requirements of the assessment may be very intermittent, and may be reduced to its vaguest and least challenging||A limited understanding of a narrow range of material||Heavy dependence on description, and/or on paraphrase, is common||Little evidence of coherent argument: lacks development and may be repetitive or thin||Almost wholly derivative: the writer’s contribution rarely goes beyond
deficiencies expression presentation; writer may achieve
clarity (if at all) only by using a simplistic or
|in and the
|Barely adequate use of iterature. Over reliance on material provided by the tutor.|
|The work examined provides insufficient evidence of the knowledge, understanding and skills appropriate to the Level of the qualification. The evidence provided shows that some of the learning outcomes and responsibilities appropriate to that Level are satisfied. The work will be weak in some of the indicators.|
|15-29%||The work examined is unacceptable and provides little evidence of the knowledge, understanding and skills appropriate to the Level of the qualification. The evidence shows that few of the learning outcomes and responsibilities appropriate to that Level are satisfied. The work will be weak in several of the indicators.|
|0-14%||The work examined is unacceptable and provides almost no evidence of the knowledge, understanding and skills appropriate to the Level of the qualification. The evidence fails to show that any of the learning outcomes and responsibilities appropriate to that Level are satisfied. The work will be weak in the majority or all of the indicators.|