taxation - 1 Personal and Corporate Taxation 1 Summary The...

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1 Personal and Corporate Taxation 1 Summary The following report is a response, following our meeting with Mr Dean regarding the questions that he has placed concerning the tax implications related to some business changes/decisions he is considering for the taxable year 2007/8. Mr Dean has raised some issues concerning self employment and most importantly the tax burden for individuals working from home. This is a matter that is very popular at the moment as daily more people turn to self employment in a search for a better income. In the report I try to set out a brief guide of what an individual should be familiar with before plunging into self-employment and how it will affect his/her tax liability. In addition Mr Dean raised the subject of income from property and investments. In the UK, it is the law that when letting every property is considered as a business on its own but these businesses are also connected between them as if an individual makes a loss on one business he can set the loss against the gain of another business. Mr Dean at the moment is running one such business and was interested in whether he should continue running it or selling the property and I believe that what I set out in p.11-12 will direct him to the most valuable solution. Following, there was the matter of working overseas. Unfortunately, I was not able to acquire sufficient information during our meeting with Mr Dean regarding this matter so I was only able to give him general information concerning the matter but as soon as we have the chance to receive the rest of the information I shall give him more specific data. Overall I have tried to include all the tax implications that the subjects raised will have on an individual.
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2 2 Introduction A tax "is not a voluntary payment or donation, but an enforced contribution, exacted pursuant to legislative authority" and is "any contribution imposed by government […] whether under the name of toll, tribute, impost, duty, custom, excise, subsidy, aid, supply, or other name." 1 Any individual, either self-employed or not, is liable for providing the necessary documents and information to the Tax Office in order to receive the correct tax that s/he is liable to pay. In neglecting to do so and pay tax then s/he is charged under tax fraud and will have to pay a fine. Following is the report of income tax that Mr Dean is liable to pay for the taxable year 2007/8 and some information that might aid him in his future employment direction. 1 Black's Law Dictionary , p. 1307 (5th ed. 1979).
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3 Personal and Corporate Taxation 3 Income Tax for Mr Dean 2007/8 The following is the Income Tax Computation based on the information that you have provided us with Mr Dean. Tax Computation:
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taxation - 1 Personal and Corporate Taxation 1 Summary The...

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