Write a paper for Business and Personal Taxation in approximately 12 pages (3,000 words).
Required:
Critically analyse the behaviour of Google in the context of the UK tax environment. Your response should a consideration of UK tax law, international aspects of tax regulation, other contemporary tax planning cases, professional ethics for tax accountants and ethics in the wider business community.
Required:
Acting as Emma’s accountant write a business report in preparation for the forthcoming meeting, dealing with the following:
a) A critical discussion of the tax implications of the above matters in preparation for the meeting with Harry next week. The discussions should be based on the information provided, and include all the major business taxes such as NIC, corporation tax, capital gains tax, VAT and the impact on Emma’s personal taxation position.
b) Emma also wishes to discuss with her accountant how she can extract the profits from the company in a tax efficient way. In the report identify the various methods available for extracting profits from a company and explain the tax implications for the company and for Emma herself. The report should include the relevant supporting calculations of the income tax, NIC, and corporation tax implications in an appendix attached to it where appropriate.
For the nine months ended 31 December 2014
1. The forecast net accounting profit is £343,800; expenses disallowed for tax purposes total £49,800. There is no non-trading income included in the net accounting profit.
2. As the director Emma intends to draw a salary of £60,000; adjusted net income for 2014/15 will be below £100,000 and so he will be entitled to the full personal allowance for 2014/15.
3. Emma will be provided with a car by the company. This will be purchased on 1 April 2014. Emma is very environmentally friendly and so the intention is that the company will purchase a car with CO2 emissions of 90g/km at an expected purchase price of £30,000. The company will also pay for all her private fuel.
4. The projected tax written down value brought forward as at 1 April 2014 in respect of the general pool is £25,000, the special rate pool is £18,000 and the short life asset pool of £10,000.
5. Additions eligible for the capital allowances are as follows:
- Fixtures and fittings of £27,000
- Plant and machinery of £30,000
- Moveable partitions of £6,000
- Car (for Emma’s use – see note 3 above) with CO2 emissions of 90g/km for £30,000
It is expected that there will be some disposals of assets on which capital allowances have been claimed; the projected proceeds for the general pool were £4,000 and for the short life asset pool £12,000.
6. Neither the business nor Emma is expected to receive any other taxable income (including dividends received) in 2014/15, nor does it have any associates.