Module Title:Business Tax for Self-Employed and VAT
Language of Instruction:English
Credits: 5
NFQ Level:7
Module Delivered In No Programmes
Teaching & Learning Strategies: Lectures -The Lecturer communicates knowledge and techniques to the students. Problem Solving Exercises -The students will work as part of a team to resolve various tax scenarios. Class Discussion/Debate - Students will be encouraged to actively participate in class sessions which will develop their analytical and communication skills. Self-Direct Independent Learning - the emphasis on independent learning will develop a strong and autonomous work and learning practice.
Module Aim: The course aims to give students a comprehensive and detailed knowledge of Income Tax and VAT for self-employed individuals. The students will be employment- ready to complete tax calculations, income tax and VAT returns on ROS and be familiar with the administration, and compliance requirements. This module will develop the students analytical skills in assessing the relevant liabilities arising from Income Tax and VAT, and applying in practical scenarios. It develops students' analytical skills by applying their knowledge and understanding to solving practical problems.
Learning Outcomes
On successful completion of this module the learner should be able to:
LO1 Calculate the Income tax liability for a self-employed individual, sole trader or partner, and provide advice regarding tax obligations, ethical responsibilities and advising the client of available tax reliefs.
LO2 Compare the taxation effects of different business options-sole trader/partnership versus Limited company.
LO3 Explain the basic principles of VAT, and calculate VAT liabilities and complete a VAT return on ROS.
Pre-requisite learning
Module Recommendations

This is prior learning (or a practical skill) that is recommended before enrolment in this module.

No recommendations listed
Incompatible Modules
These are modules which have learning outcomes that are too similar to the learning outcomes of this module.
No incompatible modules listed
Co-requisite Modules
No Co-requisite modules listed
This is prior learning (or a practical skill) that is mandatory before enrolment in this module is allowed.
No requirements listed

Module Content & Assessment

Indicative Content
Administration, Procedures & Ethics
Revenue Online Service . Revenue Website .Revenue Audits. Revenue Powers. Charter of rights. Sources of Revenue Law- tax legislation, tax cases, revenue practice, EU Directives, and international tax treaties. Tax avoidance. Tax evasion. The application of Code of Ethics for Accountants to Tax work.
Taxation of Self-Employed Trades and Professions-Case 1, 11
The badges of Trade; Apply the badges of Trade to establish if a business or individual is trading. Calculation of adjusted profits for tax purposes – add backs, deductions, allowable and disallowable expenditure. Pre-trading expenditure. Motor Lease formulas. Personal expenses. Professional Services Withholding Tax. Relevant Contracts Tax. Self –Assessment. Return filing dates. Preliminary tax. Tax Return. Relief for pension contributions
Basis of Assessment
The basis of assessment for self –employment Income. Commencement- the basis of Assessment for the first three years in business. Taxpayer’s option to reduce the assessment in Year 2. Cessation. Revenue’s option to revise Year 2 to actual. Change of Accounting period. Revision of the preceding period to same basis.
Capital Allowances
Capital Allowances – Calculate Wear & Tear allowances, treatment of grants, compute balancing allowances & charges. Replacement option. Motor Cars – the relevant ceiling. Personal motor expenses. Industrial buildings. Prepare Capital Allowances on Excel Spreadsheet.
Taxation for Farming
Compute farming income on the income averaging basis. Compute the relief available for an increase in Stock.
Partnerships. Computation of tax liabilities of partners. Apportionment of profits, or losses. Interest on capital, partners salaries. Commencement & Joining a partnership. Cessation and leaving an existing partnership.
The tax implications of incorporating an existing business. Cessation. Transfer of a business to a company, Section 600. Compare tax and business consequences of operating as a sole trader/partner or as a company.
Loss Relief
Case 1 & 11 Loss relief. Advising the client on whether Section 307 should be claimed. Case V Loss Relief.
Computer Lab
Revenue Website. Revenue Online Service. Filling up a Form 11 and a VAT return for sole traders and partnerships. Tax Computation. Capital Allowances Schedules.
Value Added Tax
Describe the scope of VAT. Explain how VAT is accounted for and administered. -The charge to VAT. The multi-stage nature of VAT. Define a supply of goods, and services and the place of supply. Registration –mandatory & voluntary Explain how a person can de-register for VAT. Records to be maintained. List the information that must be included on a VAT invoice. Explain the package and the two-thirds rules. Multiple, Composite, Ancillary Supplies Deductible and non-deductible VAT. Partial deduction. Describe the relief that is available for bad debts. Distinguish between the treatment of zero-rated and exempt supplies Describe cash accounting and the invoice basis. Annual accounting schemes Compute the VAT payable, repayable for a vat period. State the circumstances in which interest and penalties apply. Group Registration. Intra-Community supplies of goods and services
Assessment Breakdown%
End of Module Formal Examination100.00%
Continuous Assessment
Assessment Type Assessment Description Outcome addressed % of total Assessment Date
Examination Formative assessments including MCQ's, Short numerical questions and tax computations. Using Excel for tax. Filing Tax returns in ROS. 1,2,3 0.00 Week 7
No Project
No Practical
End of Module Formal Examination
Assessment Type Assessment Description Outcome addressed % of total Assessment Date
Formal Exam End-of-Semester Final Examination 1,2,3 100.00 End-of-Semester

ITCarlow reserves the right to alter the nature and timings of assessment


Module Workload

Workload: Full Time
Workload Type Frequency Average Weekly Learner Workload
Lecture Every Week 3.00
Independent Learning Time Every Week 8.00
Laboratory Every Week 1.00
Total Hours 12.00
Workload: Part Time
Workload Type Frequency Average Weekly Learner Workload
Lecture Every Week 2.00
Independent Learning Time Every Week 7.00
Total Hours 9.00