Posted: February 2nd, 2015

What is the key structural question which is discussed in this chapter and why is this question important?

Paper, Order, or Assignment Requirements

 

AAF001-3

Taxation Assessment 1

 

A report on the reform of UK taxation was commissioned by the Institute for Fiscal Studies (IFS). The report was written by leading public finance economists, led by a Nobel Prize-winning Cambridge professor James Mirrlees. The report, published in 2012, takes a broad view of taxation taking into account the vast research which has been done in the area of public finance and taxation..

Small Business Taxation   by Claire Crawford and Judith Freedman forms Chapter 11of this report. This chapter deals with aspects of individual taxation which are readily apparent to tax practitioners.

For the purposes of this assessment you are required to read this chapter and answer the following questions:

 

1. What is the key structural question which is discussed in this chapter and why is this question important?                                                                                                 20 marks

Proposed maximum word count 700 words.

 

 

2. What approaches have been tried or proposed to address the tax implications of the differential tax treatment. 30 marks

Proposed maximum word count 800 words.

 

 

3. Assuming profits/income of £25,000 and £75,000 update Tables 11C.1 and 11C.2 using 2014-15 tax and NIC rates and discuss the implications of the historical trends for individuals who are employed or self-employed.                                                                                                                                                                                                                                                 20 marks

Proposed maximum word count 700 words.

 

 

 

 

4. In your opinion, is there a need to address the differential tax treatment referred to in this chapter.                                 .                                                                               20 marks

Proposed maximum word count 700 words.

 

 

Presentation and format                                                                                                         10 marks

                 Maximum word count 2900 words

                   Total marks                                                                                                     100

 

 

Instructions

1. Please write each question before answering it.
2. Each question should start on a new page.
3. Include all your references at the end of the assignment.
4. There is no requirement for an introduction or contents page.
5. Use Harvard (author-date) style referencing.
6. References and questions’ word count is excluded from total 2900 word count.
7. You will need to submit a hard copy via the assignment office and an electronic copy via turn-it-in.

 

 

 

 

Marking Guide

For the purpose of this assignment, please read and understand Chapter titled “Small Business Taxation”   by Claire Crawford and Judith Freedman the then answer the four questions which you have been asked.

 

 

1. What is the key structural question which is discussed in this chapter and why is this question important?                                                                                                 20 marks

Proposed maximum word count 700 words.

 

In your answer to this question we expect you to write about your understanding of the key structural question and why you consider it to be important. Marks will be awarded for the clarity of your understanding and how it is communicated in your answer.

 

 

2. What approaches have been tried or proposed to address the tax implications of the differential tax treatment. 30 marks

Proposed maximum word count 800 words.

 

Please read the chapter and also engage in research to identify the approaches used or

proposed to deal with the differential tax outcomes resulting from alternate structures

the authors have discussed.

 

3. Assuming profits/income of £25,000 and £75,000 update Tables 11C.1 and 11C.2 using 2014-15 tax and NIC rates and discuss the implications of the historical trends for individuals who are employed or employed.                                                                                                                                                                                                                                 20 marks

Proposed maximum word count 700 words.

 

In your answer to this question you will update Tables 11C.1 and 11C.2 using 2014-15 tax and National Insurance rates. These rates are available in Taxation text book and on the HMRC website. You are also required to discuss the implications of the changes for the self-employed and employed persons.

 

4. In your opinion, is there a need to address the differential tax treatment referred to in this chapter.                                 .                                                                               20 marks

Proposed maximum word count 700 words.

In your answer to this question you are required to present arguments both for and against the differential tax treatment. A total of two arguments in favour of continuing with the differential treatment and two arguments against continuing with differential tax treatments should be included.

It is important that you start your work as early as possible and plan it carefully. The language should be clear, grammatical and competently spelled and punctuated

 

There is no need for any introduction but you will need to include references at the end of your assignment. The references are excluded from the maximum word count.

You will need to submit a hard copy via the assignment office and an electronic copy via turn-it-in.