Introduction to UK Tax & Administration Wk1 Flashcards
What are the purposes of taxation?
1- to raise revenue for public expenditure
2- to alter patterns of behaviour ( ie taxing ciggaretes and alcohol to make less popular)
3- to distribute income and wealth (individuals taxed at different rates and redistributed)
4- to encourage economic growth
5- to encourage certain sectors of the economy
What are the Indirect methods of taxation in UK taxation
Value Added Tax (VAT)
Excise Duty
What are the Direct methods of taxation in UK taxation?
Income Tax
Corporation Tax
Capital Gains Tax
Inheritance Tax
National Insurance Contributions (NIC)
What are the SDG goals that the UK tax system try to incorporate?
Goal 8 - Decent work and Economic Growth
Goal 13- Climate Action, (As well as goal14&15, life below water and life on land)
Goal 17- Partnerships for the Goals
How does the UK tax system align with SDG goal 8?
Collect the right tax and pay out the right financial support. Make it easy to get tax right and hard to break or bend the rules
How does UK tax system align with SDG goal 13,(14,15)
Environmental Taxes such as climate levy ,emmission trading, landfill tax aggregate, plastic packaging etc
What is the Plastic Packaging Tax (PPT)?
As of April 1, 2024 £217.85 per tonne for plastic packaging that is less that 30% recycled, increase from pervious year
How does the UK tax system align with SDG goal 17?
Maintain tax payers consent through fair treatment and protect society from harm
What are 13 other main tax statutes
The Income Tax Act 2007
Corporation Tax Act 2010
The Capital Allowances Act 2001
Income Tax (Earnings and Pensions Act) 2003
Taxes Management Act 1970
The Taxation of Chargeable Gains Act 1992
The Inheritance Tax Act 1984
The Value Added Tax Act 1994
The Custom and Excise Management Act 1979
The Social Security Contributions and Benefits Act 1992
Finance Act 2024
Income Tax (Trading and Other Income) Act 2005
The Scotland Act 2012/2016
What are the Statutory Instruments issued by HMRC
Statements of Practice (S.P)
Extra - statutory concession (E.S.C)
European Union Law
EU Directives
Cae Law (grey area so case law used)
What is the main purpose of Statements of Practice?
The main purpose of Statements of Practice (SPs) is to explain the Department’s view of the law where the statute is unclear and may have more than one interpretation or where HMRC considers it would assist taxpayers to have an explanation of HMRC’s view of the law.
What is Extra- statutory concession (E.S.C)
An Extra-Statutory Concession is a relaxation which gives taxpayers a reduction in tax liability to which they would not be entitled under the strict letter of the law.
What are the duties of the commissioners of Revenue and Customs?
to implement the statute law relating to direct and indirect taxation
to provide advice to the Chancellor of the Exchequer on direct tax matters
to administer the divisions and offices of HMRC
What are some additional duties undertaken by HMRC?
National Insurance Contributions
Working Tax Credit and Child Tax Credit
Child Benefit
Collection of student loans
Monitoring the minimum wage
What are the types of HMRC offices and what format are they trying to move towards?
- Specialists Offices
- Call centres
- Nowadays there are very little offices you can walk into as HMRC are trying to move towards digitalisation
