Assessment Brief

Read this assessment brief carefully, it tells you how you are going to be assessed, how to
submit your assessment on-time and how (and when) you’ll receive your marks and
feedback.

Module Code AFE-5-TAP

Module Title Taxation Fundamentals
Lecturer John Forgan
% of Module Mark 40%
Distributed 03/10/24
Submission Method Submit online via this Module’s Moodle site
Submission
21/11/24 at 2pm
Deadline
Release of
Feedback will be available online from 17/12/24
Feedback
Provisional marks will be available in the
Release of Marks
Gradebook on Moodle from 17/12/24____

Coursework:
This is the coursework brief for the L5 Taxation Practice
module. The tasks for this coursework include a scenario-
based taxation computation and report together with
researched answers to taxpayers topical questions. The C/W
carries 40% of the module marks the other 60% are carried in
the end of module 3 hour closed book unseen examination.

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Assessment Details:
Type: Researched computation.
Resources: See list below and module handbook

Word Count: 3,000 words plus computations. The word count for
each component of the C/W is indicated.

Footnotes will not count towards word count totals

but must only be used for referencing, not for the
provision of additional text. The bibliography will not
count towards the word total.

Excessive use of words and poor complicated use of

English will result in a reduced mark being awarded.

Presentation:  Work must be referenced, and a bibliography

provided
 Work must be submitted as a Word document
(.doc/docx)
 Course work must be submitted using Arial font size
11 (or larger if you need to), with a minimum of 1.5
line spacing
 Your student number must appear at the front of
the coursework. Your name must not be on your
coursework.

Referencing: Harvard Referencing should be used, see your

Library Subject Guide for guides and tips on
referencing.

Regulations: Make sure you understand the University

Regulations on expected academic practice and
academic misconduct. Note in particular:

 Your work must be your own. Markers will be

attentive to both the plausibility of the sources
provided as well as the consistency and
approach to writing of the work. Simply, if you
do the research and reading, and then write it
up on your own, giving the reference to
sources, you will approach the work in the
appropriate way and will cause not give
markers reason to question the authenticity of
the work.
 All quotations must be credited and properly
referenced. Paraphrasing is still regarded as
plagiarism if you fail to acknowledge the source
for the ideas being expressed.

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 TURNITIN: When you upload your work to the
Moodle site it will be checked by anti-plagiarism
software.

Learning Outcomes
This assessment will fully or partially assess the following learning outcomes for this module:

• Explain the operation and scope of the UK tax system

• Explain and compute the income tax liabilities of individuals
• Calculate national insurance contributions of employees, employers and the self-
employed.

The other learning outcomes as set out in the module guide will be assessed in the end of
module examination.

Assessment Criteria and Weighting

LSBU marking criteria have been developed to help tutors give you clear and helpful
feedback on your work. They will be applied to your work to help you understand
what you have accomplished, how any mark given was arrived at, and how you can
improve your work in future. Marks attributable to each part of the coursework are
indicated after each section.

Part of the purpose of the coursework in Taxation Fundamentals is to assess the ‘soft
skills’ of students in terms of word processing. Therefore, we require you to submit a
‘Professional’ looking document which can earn up to 10% of the marks available for
the coursework. The marks will be assessed with reference to matters such as:
• Use of spellcheck
• Consistent and appropriate font size and style
• Correct pagination
• Page numbering
• Spacing
• Use of tables
• Word count
• Presentation of numbers
• General format and content issues

It is recommended that the following should be included in your document:

o Title/cover (including the name of course, the name of the module and
coursework, your date of birth, your name and student number, the date and the
word-count)
o Page of contents
o Main body of report (Scenario one, two and three) o
o Bibliography (using Harvard style of referencing)
o Appendices as required

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 Feedforward comments

Criteria
100-80% 79-70% 69-60% 59-50% 49-40% 39-30% 29-0%

1. Research Extensive independent relevant Extensive independent relevant Wide range of relevant A range of sources Limited research Some evidence of Little or no
Systematic identification research evidenced by quality and research evidenced by quality sources identified and used. identified and identified and used. research but research
and use of academic and quantity used. Ability to draw on and quantity used. Some Very little guidance needed. used. Limited Some guidance insufficient amount. presented. Needs
relevant resources own research and that of others. autonomous research. guidance needed. needed to complete Needs support to significant support
research tasks. develop research to develop
50%

skills. research skills.

2. Subject Knowledge Shows sustained breadth, Shows breadth, accuracy and Accurate and extensive Accurate Understanding of key Some evidence of Little or no
Understanding and accuracy and detail in detail in understanding key understanding of key aspects understanding of aspects of subject. superficial evidence of
application of subject understanding key aspects of aspects of subject. Contributes of subject. Evidence of key aspects of Some evidence of understanding of understanding of
knowledge. Contribution to subject. Contributes to subject to subject debate. Some coherent knowledge. subject. Evidence coherent knowledge. subject. subject.
subject debate. debate. Awareness of ambiguities awareness of ambiguities and of coherent Inaccuracies. Inaccuracies.
and limitations of knowledge. limitations of knowledge. knowledge.

3. Critical Analysis Very high-quality analysis Sustained evaluation and Evaluation and synthesis of Evaluation and Some attempt at Limited evaluation of Little or no
Analysis and interpretation developed independently. synthesis of resources. Use of resources. Use of evidence- synthesis of evaluation and resources. Limited evaluation of
of sources, literature Sustained evaluation and evidence-based arguments. based arguments. Identifies resources. Use of synthesis of use of evidence- resources. Very
and/or results. Structuring synthesis of resources. Use of Thoroughly identifies trends, trends, inconsistency, evidence-based resources. Some based arguments little use of
of issues/debates. evidence-based arguments. inconsistency, congruence, and congruence, and states the arguments. use of evidence- evidence-based
Thoroughly identifies trends, states the implications. implications. based arguments. arguments.
inconsistency, congruence, and
states the implications.
4. Practical Competence Consistently applies Applies comprehensive practical Applies practical and/or Applies practical Applies a sufficient Applies some Limited application
Skills to apply theory to comprehensive practical and/or and/or technical skills which technical skills very well and and/or technical level of practical aspects of the of some aspects of
practice or to test theory technical skills which reflect the reflect the correct application of with careful application of skills correctly and and/or technical skills practical and/or the practical and/or
correct application of theory to theory to context. theory to context. with some but with some errors. technical skills but technical skills. No
context. application of Limited application of these are incomplete application of
theory to context theory to context. or contain important theory to context.
with only minimal errors. Very limited
errors. application of theory
to context.
5. Communication and Communication is entirely clear, Communication is clear, Communication is clear, Communication is Communication is Communication is Communication is
Presentation persuasive and compelling with persuasive and compelling with mostly persuasive and clear, with skilful mostly clear and unclear because very unclear
Clear intention in very skilful use of the presentation very skilful use of the compelling with skilful use of use of the presentation format presentation format because
communication. Audience format. Presentation addresses presentation format. the presentation format. presentation is adequate. is not used presentation
needs are predicted and fully the needs of the audience. Presentation addresses fully the Presentation addresses the format. Presentation may adequately and/or format is not used
met. Presentation format needs of the audience. needs of the audience. Presentation takes sometimes not take the needs of the adequately, and
is used skilfully. Work is into account the into account the audience are not the needs of the
well structured. needs of the needs of the taken into account. audience are not
audience. audience. taken into account.
6. Academic Integrity1 Consistent, error free application of Consistent, error free application Consistent application of Application of Generally correct Limited application of Very limited or no
Acknowledges and gives relevant referencing conventions of relevant referencing relevant referencing relevant application of referencing application of
credit to the work of others with great attention to detail. conventions. conventions with few errors. referencing relevant referencing conventions and / or referencing
follows the conventions conventions, with conventions, with errors. conventions,
and practices of the some errors and / some errors and / or and/or multiple
discipline including or inconsistencies. inconsistencies. errors.
appropriate use of
referencing standards for
discipline.

1 The application of this criterion is independent of the process outlined in the Student Academic Misconduct Procedure
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7. Collaborative and/or Integrates a highly developed Integrates a sense of own Aware of and able to meet Aware of and able Aware of main Some evidence of Little or no
Independent Working sense of own identity productively identity productively into real or most standards required for to meet the main standards required of knowledge of evidence of
Demonstration of into real or simulated disciplinary simulated disciplinary situations. relevant discipline in simulated standards required relevant discipline. relevant disciplinary knowledge of
behaviour appropriate to situations. Meets the standards Meets the standards required for or real disciplinary situations. of relevant Able to work in a standards; relevant
discipline, including required for relevant discipline. relevant discipline. Can work Can work effectively in a team discipline in team or alone collaborates disciplinary
individual contribution to Can work very effectively in a team very effectively in a team or or alone. simulated or real reluctantly or standards. No
team or working with or alone. alone. disciplinary struggles to work evidence of
others in teams situations. Able to alone. collaboration with
work in a team or others;
alone unproductive
working alone

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How to get help
We will discuss this Assessment Brief in class. However, if you have related
questions, please contact me [email protected] as soon as possible.

GUIDANCE ON REFERENCING (Supplied by Academic Misconduct

Officer)
The attention of every student is drawn to the warning in the course guide on
late submission of coursework, mitigating circumstances and plagiarism.
Correct referencing is an academic skill that you will be assessed on.

Correct referencing demonstrates that you have read appropriately on the

subject, shows that you are acknowledging the sources you have used (that
you are not trying to cheat) and provide information on useful sources of
information to your reader.

Doing it correctly demonstrates professionalism. Doing it incorrectly will lead to

reduced marks and possibly to disciplinary action, which includes the possibility
of having your studies terminated.

Further help is available on all academic matters from the ‘Academic

Assistant’ at http://www.blc.lsbu.ac.uk/aa/aa/

Resources
The core text Alan Melville, TAXATION, FINANCE ACT 2023, 29th edition. Financial
Times / Prentice Hall. DO NOT USE any previous or later editions

2023/24 editions of Tolley’s Tax Computations and LexisNexis UK.

Websites

As well as the library facilities, you should also use the University Learning Resource
Centre to acquire information, in particular using the CD-ROM and other information
retrieval systems, especially relevant sites on the www.

The unit’s Moodle site will be used as a notice board and additional materials for
learning will be posted there. It is therefore essential for students to familiarise
themselves with the site and to ensure they access it on a regular basis.

 HM Revenue and Customs hmrc.gov.uk

 Chartered Institute of Taxation tax.org.uk
 HM Treasury hm-treasury.gov.uk
 Institute for Fiscal Studies ifs.org.uk

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 This coursework is in two sections you must answer all parts of both
sections. Both sections carry 50% of the available marks.

SECTION A (one part)

BACKGROUND

Your good friend Sophia has contacted you for some tax related advice. She is
aware that you are studying taxation at London South Bank University, and she
would like you to help her to clarify some tax issues.

Sophia is resident in the UK and on 1 April 2023 she started a new job. Sophia
is very excited about her job working as a design executive in Heath Interior
Designs Limited (HIDL) a high-end interior design company working in the UK,
Europe and USA. There is lots of international travel, she will be staying in 5
star hotels, be meeting many famous clients and attending high-profile design
events. The salary and benefits package is amazing, details are set out below.

She would like to know how much tax she will have to pay in the tax year 23/24.

The following information is relevant:

1. Sophia’s gross salary from HIDL for 23/24 is £YYYYMM/2 (You should
use your year and month of birth and divide by 2. For example, if you were
born in September 2003 her salary would be £100,155) (Note: you may
choose another date within 5 years). This salary was paid monthly and the
salary for March 2024 was paid on Thursday April 11 th 2024.

2. Sophia left her former employer, High Society Designs Monthly, on 31st
March 2023. On 22nd April 2023 she received £21,500 (before deduction
of any tax or NIC) this was her March 23 salary of £5,500 and an ex gratia
payment of £16,000 in recognition of her services to High Society Designs
Monthly. They were very sorry to see her leave but hoped she would keep
in contact and write some feature articles on her experiences with HIDL in
the future and maybe take some pictures for them.

3. During the year to 5th April 2024 Sophia worked very hard with many
more days spent overseas than originally planned and she also secured
some awards for her designs. Her new employers were particularly
pleased with Sophia’s work and in recognition this HIDL paid her a bonus
for the year 23/24 this amounted to £14,000 and was paid on April 11th 2024
at the same time as her March salary.

4. Sophia contributed 5% of her monthly gross salary into HIDL’s HMRC

registered occupational pension scheme

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 5. Sophia was given the choice of a company car up to a list price (at April
2021) of £30,000, including all extras. She was also given unlimited fuel.
Choose a car (your personal preference although the engine must be
diesel) from the web for Sophia’s car. Give full details of make, model, list
price, type of engine system and CO2 emissions. Get a screenshot of the
car details from the website you used and attach in the coursework as an
appendix. (Note you must use the Manufacturers’ list price not Auto
Trader price)

6. On 6 July 2023 HIDL lent Sophia a home cinema system costing

£14,000 for her private use and to watch art and fashion shows, her boss
thought it might help with inspiration. On 31th March 2024 the market value
of the system was £5,000.

7. On 7th April 2023 HIDL lent Sophie £32,000 to build an extension at her
home (to house the cinema system). Sophie repaid the loan on 3rd April
2024. HIDL charged Sophia £320 interest (Note you will have to find the
official interest rate).

8. On joining HIDL Sophie was given some tech equipment for use in her
work although she was free to use them personally as well. She still had
all the equipment at 5th April 2024:
▪ Apple iPhone 15 Pro Max £1,100.00
▪ Apple Mac PC £1,800.00
▪ Nikon camera £1,250.00

The following is also relevant for the tax year 2023/24.

i. Sophia is not married and is eligible for the full 2023/24 personal
allowance, subject to any high-income restriction.

ii. Sophia makes charitable donations to the Princess Alice Hospice. The
net value of these donations is equal to 3% of her gross annual salary
(excluding any bonuses). The donations qualify for gift aid.

iii. Since leaving University Sophia has carried out assignments relating to
the interior design industry, photographing exhibitions and some design
consultancy, also writing articles on interiors and latest design trends
and doing some PR type work. She does this in her own time usually
combing with a holiday looking at interior designs. Her father helps her
with the invoicing and record keeping. He prepares a simple income and
expenditure account (to 30 September) and completes Sophia’s Self-
Assessment Tax return. The small business had a tax adjusted profit of
£16,500 in the year to 30 September 2023 and £15,000 in the year to 30
September 2024. She also had overlap profits brought forward of
£2,500.

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iv. Sophia has some other income in 2023/24. She received gross building
society interest of £3,200. She also received dividend income from her
investment portfolio of £7,300 and income of £4,000 from an ISA.

REQUIRED:

Write a report with detailed explanation of Sophia’s income tax payable and
her NICs for 2023/2024. (700-1,000 words)
(20 marks)

You must clearly show all the relevant calculations in detail, added as
supporting documents for your report. Your calculation should be set out in a
way that Sophia (not a tax expert) can easily understand. You are advised to
use an Excel worksheet for the calculations.
(20 marks)

Remember! – Sophia is a creative person, she has some financial

understanding but does not have much knowledge of Taxation issues!
Therefore, you have to be clear in your presentation. You should also state any
assumptions you make.

Professional marks will be awarded for

• the overall presentation of the report,
• the provision of relevant advice and
• the effectiveness with which information is communicated.
(10 marks)
Total for section A 50 Marks

SECTION B (three parts)

Part 1 – Employment or self-employment?

During one of your coffee meetings with Sophia she explains that she been
offered some design work on an interesting high profile penthouse
refurbishment project in Mayfair. The actual time commitment is flexible, she
would have to attend the site several times but most of the actual design work
would be in her studio at her home in the evening and at weekends. It is a
one-off contract but if it went well there could be more assignments from the
contractor, ABC Contracts Limited (ABCC).

Because of the flexible nature of the work HIDL are happy for Sophia to
undertake project work of this nature. Some of the detailed drawing work
would be completed on a CAD system and hence be outsourced to an
associate she works with from time to time on other small projects.

Sophia also explains that the fee for the work is fixed but is very generous and
any design rights stay with her so they could be adapted and used on other
projects.
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She would like to know if working for ABC Contracts Limited should treated as
employment or as self-employment and would like you to check this out with
HMRC and to explain to her the implications of both types of working
arrangement.

Required:

Write a report advising Sophia as to the difference between employment and self-
employment and the employment nature of her proposed work with ABCC. You
should use the HMRC Employment Status checker to see if Sophia should be
treated as self-employed or employed. Your report should include a commentary
on the result and should also include references to relevant cases. You should
state any assumptions you make and identify any additional information needed.

Your report should explain the implications of the different status to Sophia.

This is a link to the HMRC employment status checker:

https://www.gov.uk/guidance/check-employment-status-for-tax

Click start > read the disclaimer click Accept and continue > select “If work is
classed as employment or self-employment for tax purposes” click continue >
select “worker” click Continue > select “Construction ….” (the second option)
click Continue > complete the rest of the online questionnaire based upon the
information given above, make a note of any assumptions you make.

After five sets of questions you will arrive at a declaration, click Confirm for
result > at the result page select option 1 “Save or print a copy of this result
(opens in a new tab)” in the new tab select “Your name” > at “what is your
name?” insert your LSBU student ID number click Continue > print a pdf copy of
your results. Attach as an appendix to your report.

Note: Calculations are not required for this question, nor should you make
reference to IR35.
(800 words)

(20 marks)

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Part 2 - Impact of taxes and tax planning

Sophia tells you that The Chief Designer and owner of Heath Interior Designs
is Sebastian Heath and that he is interested in knowing more about the use of
tax avoidance schemes. She gives you a photocopied paragraph and you
read it together:

”No man in this country is under the smallest obligation, moral or

other, so as to arrange his legal relations to his business or to his
property as to enable the Inland Revenue to put the largest
possible shovel into his stores. The Inland Revenue is not slow –
and quite rightly – to take every advantage which is open to it
under the taxing statutes for the purpose of depleting the
taxpayer’s pocket. And the taxpayer is, in like manner, entitled to
be astute to prevent, so far as he honestly can, the depletion of
his means by the Inland Revenue”
Lord Clyde in Aryshire Pullman v CIR 1929

She then asks for your opinion “what’s it all about?”. She then pauses and
asks if you can meet her in a weeks-time once you have done some research
and considered your response more fully. She then explains that Sebastian
will be meeting his tax advisor in two weeks’ time to discuss tax avoidance
and that he would like Sophia to be there (apparently Sebastian has less of a
grip on tax than Sophia). Sophia hopes that your research will help her in the
discussions.

Required:

In advance of your next meeting write notes setting out to what extent
changes to UK tax legislation have overturned the verdict in the above cited
case. You should support your answer with references to legislation and
cases. However, you need to frame your answer in such a way that Sophia
can understand.

References to the relevant sections of the 2013 GAAR legislation will enable you
to secure higher marks. You should also explain to what extent the GAAR
legislation has been effective.

Present your detailed notes in a report format. (Calculations are not required for
this question).

Your summary should be detailed enough to be a basis for Sophia to

understand and contribute to discussions in the meeting. It may contain
examples if that will improve the clarity of your report.
(800 words)
(20 marks)

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PART 3 – The standards for Tax planning

Before your meeting with Sophia is over, she explains that Sebastian is not very
happy with his tax advisor and she asks you “is there is a code of conduct that
tax advisors work under?” You explain that “tax practitioners must observe the
standards that have been developed by Professional Conduct in relation to
Taxation bodies (PCRT) when advising on UK tax planning”. You explain that
the standards are merely a supplement to five fundamental principles and don’t
substitute the five fundamental principles. Which are:

 Client specific
 Lawful
 Disclosure and transparency
 Advising on tax planning arrangements
 Professional judgement and appropriate documentation

Sophia is interested and asks for more information on the standards and
maybe some examples. She thinks it could be another topic for next week’s
meeting. You think it will be a long meeting next week!

Required:

With the support of relevant examples, define and explain the five
standards for Tax Planning.
(400 words)

(10 marks)

Total for Section B 50 marks

Note: Presentation

Bibliography and referenced citations in text and cross referencing, general

presentation and English are all important and will be considered when
arriving at the mark.

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