ACCA F6 Taxation Study Guide Information
ACCA F6 Taxation Study Guide : This is the main document that students, tuition providers and publishers should use as the basis of their studies, instruction and materials. Examinations will be based on the detail of the study guide which comprehensively identifies what could be assessed in any examination session. The study guide is a precise reflection and breakdown of the syllabus. It is divided into sections based on the main capabilities identified in the syllabus. These sections are divided into subject areas which relate to the sub-capabilities included in the detailed syllabus. Subject areas are broken down into sub-headings which describe the detailed outcomes that could be assessed in examinations. These outcomes are described using verbs indicating what exams may require students to demonstrate, and the broad intellectual level at which these may need to be demonstrated (*see intellectual levels below).
ACCA F6 Taxation Study Guide Information
ACCA F6 Taxation Study Guide :
A THE UK TAX SYSTEM AND ITS ADMINISTRATION
1. The overall function and purpose of taxation in a modern economy
a) Describe the purpose (economic, social etc) of taxation in a modern economy.
b) Explain the difference between direct and indirect taxation.
c) Identify the different types of capital and revenue tax.
2. Principal sources of revenue law and practice
a) Describe the overall structure of the UK tax system.
b) State the different sources of revenue law.
c) Describe the organisation HM Revenue & Customs (HMRC) and its terms of reference.
d) Explain the difference between tax avoidance and tax evasion, and the purposes of the General Anti-Abuse Rule (GAAR).
e) Appreciate the interaction of the UK tax system with that of other tax jurisdictions.
f) Appreciate the need for double taxation agreements.
g) Explain the need for an ethical and professional approach.
3. The systems for self-assessment and the making of returns
a) Explain and apply the features of the self assessment system as it applies to individuals.
b) Explain and apply the features of the self assessment system as it applies to companies, including the use of iXBRL.
4. The time limits for the submission of information, claims and payment of tax, including payments on account
a) Recognise the time limits that apply to the filing of returns and the making of claims.
b) Recognise the due dates for the payment of tax under the self-assessment system, and compute payments on account and balancing payments/repayments for individuals.
c) Explain how large companies are required to account for corporation tax on a quarterly basis and compute the quarterly instalment payments.
d) List the information and records that taxpayers need to retain for tax purposes.
5. The procedures relating to compliance checks, appeals and disputes
a) Explain the circumstances in which HM Revenue & Customs can make a compliance check into a self-assessment tax return.
b) Explain the procedures for dealing with appeals and First and Upper Tier Tribunals.
6. Penalties for non-compliance
a) Calculate late payment interest and state the penalties that can be charged.
B INCOME TAX AND NIC LIABILITIES
1. The scope of income tax
a) Explain how the residence of an individual is determined.
2. Income from employment
a) Recognise the factors that determine whether an engagement is treated as employment or self-employment.
b) Recognise the basis of assessment for employment income.
c) Recognise the income assessable.
d) Recognise the allowable deductions, including travelling expenses.
e) Discuss the use of the statutory approved mileage allowances.
f) Explain the PAYE system, how benefits can be payrolled, and the purpose of form P11D.
g) Explain and compute the amount of benefits assessable.
h) Recognise the circumstances in which real time reporting late filing penalties will be imposed on an employer and the amount of penalty which is charged.
3. Income from self-employment
a) Recognise the basis of assessment for selfemployment income.
b) Describe and apply the badges of trade.
c) Recognise the expenditure that is allowable in calculating the tax-adjusted trading profit.
d) Explain and compute the assessable profits using the cash basis for small businesses.
e) Recognise the relief which can be obtained for pre-trading expenditure.
f) Compute the assessable profits on commencement and on cessation.
g) Recognise the factors that will influence the choice of accounting date.
h) Capital allowances
i) Define plant and machinery for capital allowances purposes.
ii) Compute writing down allowances, firstyear allowances and the annual investment allowance.
iii) Compute capital allowances for motor cars.
iv) Compute balancing allowances and balancing charges.