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    Attachment 2 Guidance For Assessment

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    ultimatecombat92

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    © All Rights Reserved
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    Attachment 2 Guidance For Assessment

    Uploaded by

    ultimatecombat92
    29 views5 pages

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    Attachment 2 Guidance for assessment

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    29 views5 pages

    Attachment 2 Guidance For Assessment

    Uploaded by

    ultimatecombat92

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    Compliance Caseworker

    In tray exercise – July 2023

    OFFICIAL
    Activity Guidance
    During your assessment we will give you an email from a customer that you will need to reply to. The
    customer thinks they may have made an error and will give you information about their tax payments.

    You don’t need experience working with tax to be able to complete the task.

    This booklet has all the information you need to successfully complete the task and you can read
    through this prior to your assessment session. You will also need a copy of this on the day of your
    assessment.

    You will be able to use a calculator.

    Activity Information & Guidance

    Information to be provided on all emails


    When responding to customers HMRC needs to give the right information. When giving customers
    any tax calculations, all emails must include the following sentence:

    “All tax calculations provided by HMRC may be subject to a final review, if there are any changes to
    be made, HMRC will contact you within 60 days”

    Income and Expenses


    Income Tax is paid on profits and is paid for by the person getting the income. For example, an
    electrician who has income from charging customers for their services.

    On a Bank Statement:

    Income is the “Paid In” amount

    Expenses is the “Paid Out” amount

    It is charged on the profits of a trade and under Section 7 ITTOIA 2005 and is ‘the full amount of the
    profits of the tax year’. Profit is the payments received minus the expenses of the business.

    For example, an electrician who needs to buy tools and materials to complete the job for which
    he has been employed and will invoice the customer for.

    OFFICIAL
    To do this, we must:

    1. Identify the total money that a company makes


    2. Minus the expenses

    Business expenses vs Personal expenses


    No deductions are allowed for expenses that is not for a business reason. For example, an electrician
    who purchases a family holiday through his business.

    For an expense to satisfy our test, the business purpose must be the only purpose. If the business
    element cannot be separated from the non-business element, the expense cannot be deducted from
    trading profits in full.

    Tax bracket information


    Income Tax rates and Personal Allowances : Current rates and allowances - GOV.UK (www.gov.uk)

    OFFICIAL
    Tax Calculations
    The table below shows how to calculate tax in each tax bracket.

    Tax Threshold Tax Due

    Tax Free: £12,570 £0

    (£0 - £12,570)

    Tax at 20%: £37,700 Total Amount X 0.2

    (£12,571 – £50,270) Total Amount (Multiply by) 0.2

    Tax at 40%: £5,059 Total Amount X 0.4

    (50,271 – £125,140) Total Amount (Multiply by) 0.4

    Total to be paid Tax at 20% + Tax at 40%

    Tax at 20% (add) Tax at 40%

    Bank Statement

    Date Type Description Paid In Paid Out Balance

    OPENING BALANCE 3803.90

    01 May 2022 BACS PhoneBuyerDirect 745.00 3058.90

    01 May 2022 Faster Payment Hurst Oven Clean 28/03 400.00 3458.90

    01 May 2022 Faster Payment Kelly Oven Clean 28/03 350.00 3808.90

    02 May 2022 BACS Cleverley Oven Clean x4 29/04 1600.00 5408.90

    OFFICIAL
    03 May 2022 BACS Petrol Station 80.00 5328.90

    03 May 2022 BACS CleanEazy Ltd 280.00 5048.90

    05 May 2022 Faster Payment Marshall Oven Clean 600.00 5648.90

    06 May 2022 Cash Withdrawal ATM High Street 100.00 5548.90

    Headworth Lettings – 5x Oven


    06 May 2022 Faster Payment 3000.00 8548.90
    Clean

    06 May 2022 BACS Franchise Payment 2000.00 6548.90

    10 May 2022 BACS Petrol Station 80.00 6468.90

    13 May 2022 CHQ Cheque 0000234 – Dodds’ Oven 450.00 6918.90

    14 May 2022 Int. Bank Interest Paid 9.33 6928.23

    18 May 2022 DD Energies Energy 240.00 6688.23

    Savings Transf er – Family


    19 May 2022 Int Transf er 2000.00 8688.23
    Holiday

    20 May 2022 BACS f amilyholidays.com 1477.30 7210.93

    27 May 2022 DD DVLA 280.00 6930.93

    Balance Received Forward 6930.93

    *End of Document*

    OFFICIAL

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