Question

evaluate the impact of income tax on a couple’s employment and all self-employment income (with examples)? (ACCA TAX-UK)

Answer 1

The impact of income tax on couple's income will be done as : both the persons will be treated as an individual assessee as they are earning income in their individual capacity. For ex - There are two persons named as A and B forming a couple both are employed in a company in a company named as Ashra limited . The salary received by both the A and B is taxable in their individual capacity and is liable to tax under the head ' Income from salary' .

And the tax liablity of a self employed person is taxable under the head ' Income from business and profession' . For ex: A person named as Harry has his enterpreneurship firm named as ' Afatb enterprises'. He earned rs.500000 as his net profits from his business. Hence this income will be liable to tax under the head of profits and gains from nusiness or profession.