AAT – Business Tax

This course introduces UK business taxation, covering the tax calculations for sole traders, partnerships, and limited companies. Students will learn to identify tax planning opportunities while maintaining ethical standards.

The curriculum will teach students how to prepare tax computations, including the tax treatment of capital expenditure and the adjustment of accounting profits for tax purposes. They will learn to allocate profits across tax years, including opening and closing years, and distribute profits among partners in a partnership. Additionally, students will calculate National Insurance contributions for the self-employed and advise on tax implications of business losses.

The course also covers administrative requirements of UK tax law, such as the consequences of errors in tax returns, late filings, late tax payments, and the importance of retaining records. Students will learn to compute tax on the sale of capital assets by companies and understand capital gains implications and tax reliefs for selling a business.

Ethical considerations in tax reporting and the responsibilities of accountants as tax advisors will be discussed, highlighting the role of ethical standards in tax advice.

This course is an optional component of the Level 4 Diploma in Professional Accounting.

Learning Outcomes:
On successful completion of this subject, you should be able to:

1. Prepare tax computations for sole traders and partnerships
2. Prepare tax computations for limited companies
3. Prepare tax computations for the sale of capital assets by limited companies
4. Understand administrative requirements of the UK’s tax regime
5. Understand the tax implications of business disposals
6. Understand tax reliefs, tax planning opportunities and agent’s responsibilities in reporting taxation to HM Revenue & Customs