Taxation Master Case Study Example | Topics and Well Written Essays - 5000 words

Taxation Master - Case Study Example On the other hand, in computing tax liability of corporations, we use the Financial Year. Financial Year runs from 1 April in one year and ends on 31 March of the following year. For taxation purposes, taxable profits by a corporation for Financial Year 2008 are those obtained from 1 April 2008 to 31 March 2009. Income tax is a tax on income. Not all income is taxable and you're only taxed on 'taxable income' above a certain level. Even then, there are other reliefs and allowances that can reduce your Income Tax Bill - and in some cases mean you have no tax to pay ("Income Tax - the Basics"). Non - taxable income are certain sorts of income that you never pay on tax. These include certain benefits, income tax exempt accounts, Working Tax Credit (WTC) and premium bond wins. These income sources are ignored altogether when working out and how much Income Tax you may need to pay. ("Income Tax - the basics") Married Couple's Allowance (includes civil partnership)- if you are married or in a civil partnership, you or your partner may get Married Couple's Allowance (MCA) if you are living together and you and your spouse or civil partner were born before 6 April 1935. The amount you will receive depends on the age of the oldest spouse/civil partner and the level of claimant's income. Your tax bill will be reduced by ten per cent (10%) of the amount of the MCA you can claim. ("Introduction to tax allowances and reliefs") Other allowances, reliefs and expenses You can get tax relief for different expenses, depending whether you are an employee or director or self-employed. If you are an employee or a director, you can get tax relief for business expenses you have paid for and if: they were for the cost of travelling you had to do in doing your job, and other expenses you