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Level III Diploma in Self Assessment Tax Returns Completion
Type of Examination: Home-based Assessment
Prior knowledge: Competence at ICB Level II
This module comprises both Personal and Business Taxation and relates to preparing tax computations and returns for businesses (sole trader) and individuals.
Element (1) Prepare Business Taxation Computations
(A) Prepare capital allowance computations.
(B) Adjust accounting profits and losses for trades and professions.
Learning Outcomes: (A)
- Computations are made in accordance to current tax law and practice
- Expenditure on Capital Assets is classified in accordance with the statutory distinction between Capital and Revenue
- Make adjustments for private use by business owners
- Entries and calculations relating to such computations are correct
Range:
- First Year Allowance (FYA), Writing Down Allowance (WDA), Annual Investment Allowance (AIA)
- Capital Expenditure on plant and machinery, and motor vehicles
Learning Outcomes : (B)
- Adjusted profit is calculated for inclusion on the tax return
- Make necessary adjustments for private use by business owners
- The bases of assessment are correctly applied
- Complete accurately the supplementary pages on the tax return for a sole trader
- Identify NI contributions payable by self employed
- Returns are submitted to HMRC within the required timescale
- Identify due dates for payment of Income Tax
- Professional advice is given to clients on the recording of information for the tax return and confidentiality is maintained at all times
Element (2) Prepare Personal Taxation Computations
(A) Calculate income from employment
(B) Prepare Computations of Property and Investment Income
Learning Outcomes (A)
- Computations of earnings including benefits in kind, allowable expenses are accurately prepared
- Returns are completed accurately and submitted to HMRC on a timely basis
- Professional advice is given to clients on the recording of information for the tax return and confidentiality is maintained at all times
Range:
- Emoluments: UK resident employees
- Allowable expenses, contributions to pension schemes and charitable contributions
Learning Outcomes (B)
- Schedules of dividends and interest received on shares and securities are accurately prepared
- Schedules of property income are accurately prepared, profits and losses determined and appropriate relief applied
- Returns are submitted to HMRC on a timely basis
Range:
- Sources of investment income from banks, building societies and property income, holiday lets and wear and tear
Elements of CGT to include:
Annual exemption
Allowable expenses
Exempt assets
Chattels
Private residence relief
And part disposals
Duties of a Bookkeeper
The relationship of the client with the bookkeeper
The elements in this module and learning outcomes are partly based on the former AOSG national standards for Personal and Business Tax.
It is recommended that candidates taking this test should study the ICB's tutorial text, or similar material, to ensure they are sufficiently prepared.
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