Introduction To Tax

Question 1

What are the objectives of tax?

Answer 1

1. Management of the economy.
2. Social justice.
3. Environmental concerns.
4. Other influences: devolution and external influences.

Question 2

When is the financial year?

Answer 2

1st April to the 31st March

Question 3

What is HMRC responsible for?

Answer 3

1. Income tax, corporation tax, capital gains tax, inheritance tax and stamp duty tax.
2. Environmental taxes.
3. Value added taxes.
4. National insurance taxes.
5. Tax credits.
6. Child benefits.
7. Recovery of student loan repayments.
8. Anti-money laundering supervision.
9. Enforcement of the National minimum wage.

Question 4

What is a source of tax law in the UK?

Answer 4

Statutory instruments.

Question 5

Employees are taxable of the provision of living accommodation unless it is non related accommodation. When can accommodation be classified as job relating?

Answer 5

The accommodation is necessary if the proper performance of the employees duties (care taker)
The accommodation is provided for the better performance of the employees duties and the provision of accommodation is customary(police officers) .
The accommodation is provided as part of arrangement in force because of the special treatment to the employees security.