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Finance and Accounting

AAT - Business Tax (BSTX) (AWAATBSTX22)

This subject introduces you to UK taxation relevant to businesses. It is about the computing of business taxation, preparation of tax returns and how taxation has an impact on the running of a business for sole traders, partnerships and limited companies.

In learning how to prepare tax computations, you will gain skills in the tax treatment of capital expenditure, and the adjustment of accounting profits for tax purposes for sole traders, partnerships, and limited companies. In addition, you will be able to allocate profits between partners in a partnership and be able to calculate National Insurance (NI) contributions for the self-employed.

You will become familiar with the completion of tax returns. You will know when these returns need to be filed with the UK’s Revenue and Customs authority (HMRC), and the implications of errors in tax returns, the late filing of returns, and the late payment of tax. You will understand how to compute tax on the sale of capital assets and they will have an introduction to some of the tax reliefs available to businesses.

Syllabus structure
• Analyse trading profits and losses for tax purposes
• Identify the correct basis period for each tax year
• Identify and calculate capital allowances
• Analyse taxable profits and losses of a partnership between the partners
• Calculate the NI contributions payable by self-employed taxpayers
• Complete the individual and partnership tax returns relevant to sole traders and partnerships
• Analyse trading profits and losses for tax purposes
• Identify and calculate capital allowances
• Calculate total taxable profits and corporation tax payable
• Demonstrate an understanding of the tax return filing requirements and tax payments due
• Demonstrate an understanding of the penalties and finance costs for non-compliance
• Appraise the effective use of trading losses
• Demonstrate an understanding of the current tax reliefs and other tax issues
• Calculate capital gains tax payable by self-employed taxpayers
• Calculate chargeable gains and allowable losses for limited companies

Main Capabilities
On successful completion of this subject, you will:
1. Complete tax returns for sole traders and partnerships and prepare supporting tax computations
2. Complete tax returns for limited companies and prepare supporting tax computations
3. Provide advice on the UK’s tax regime and its impact on sole traders, partnerships and limited companies
4. Advise business clients on tax reliefs, and their responsibilities and their agent’s responsibilities in reporting taxation to HMRC
5. Prepare tax computations for the sale of capital assets

Format: Computer based
Availability: On demand at EIMF Examination Center
Pass: A score of 100 out of 150 will represent a Pass
Length: 120 minutes
Questions: Contains 11 tasks.
Marking: Partially computer / partially human marked
Results: Results will be available in six weeks
Please Note: Official Exam is not provided, It should be purchased separately

Registration and Access
Once you complete an online purchase you will receive confirmation of account activation. Please allow 48 hours to get access to all the modules and for your eLearning account to be set up.
If you wish to receive an invoice instead of paying online, please contact us at info@eimf.eu. Access to the subject is valid for 365 days.

Who is this subject for?
• Small business owners
• Undergraduates and graduates
• Experienced accountants
• Anyone with an interest in pursuing a career in accountancy

• Completion of Foundation Certificate in Accounting and Advanced Diploma in Accounting
• Bachelor’s Degree in accounting and finance or other related studies
• Work experience

Upon the successful completion of the subject of Business Tax, you can advance to the next subject of the Professional Diploma in Accounting or if you have already completed other subjects, can apply to the synoptic exam of Professional Diploma in Accounting.

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Completion rules
  • All units must be completed