Recent Question/Assignment

For the purpose of this assignment, please read and understand Chapter titled “Small Business Taxation” by Claire Crawford and Judith Freedman the then answer the four questions which you have been asked.

1. What is the key structural question which is discussed in this chapter and why is this question important? 20 marks
Proposed maximum word count 700 words.

In your answer to this question we expect you to write about your understanding of the key structural question and why you consider it to be important. Marks will be awarded for the clarity of your understanding and how it is communicated in your answer.

2. What approaches have been tried or proposed to address the tax implications of the differential tax treatment. 30 marks
Proposed maximum word count 800 words.

Please read the chapter and also engage in research to identify the approaches used or
proposed to deal with the differential tax outcomes resulting from alternate structures
the authors have discussed.

3. Assuming profits/income of £25,000 and £75,000 update Tables 11C.1 and 11C.2 using 2014-15 tax and NIC rates and discuss the implications of the historical trends for individuals who are employed or employed. 20 marks
Proposed maximum word count 700 words.

In your answer to this question you will update Tables 11C.1 and 11C.2 using 2014-15 tax and National Insurance rates. These rates are available in Taxation text book and on the HMRC website. You are also required to discuss the implications of the changes for the self-employed and employed persons.

4. In your opinion, is there a need to address the differential tax treatment referred to in this chapter. . 20 marks
Proposed maximum word count 700 words.
In your answer to this question you are required to present arguments both for and against the differential tax treatment. A total of two arguments in favour of continuing with the differential treatment and two arguments against continuing with differential tax treatments should be included.