In the ACCA Foundations in Accountancy suite, FTX (Foundations in Taxation) focuses on the principles of taxation and the calculation of tax liabilities for individuals and businesses.
FTX Syllabus Overview (UK Version)
The syllabus is tailored to specific tax jurisdictions (usually the UK). The core areas include:
- The UK Tax System: Understanding the purpose of taxation, different types of taxes, and the administrative duties of HM Revenue and Customs (HMRC).
- Income Tax & NIC: Calculating taxable income, personal allowances, and National Insurance Contributions (NIC) for employees and the self-employed.
- Capital Gains Tax (CGT): Computing gains and losses on the disposal of assets for individuals.
- Corporation Tax: Calculating the taxable total profits of companies and the resulting tax liability.
- Value Added Tax (VAT): Understanding VAT registration, calculation of input/output tax, and filing requirements.
Key Learning Outcomes
By the end of this module, you should be able to:
- Explain the operation and scope of the tax system.
- Calculate income tax liabilities for individuals with various income sources.
- Identify and compute capital gains tax for individual disposals.
- Compute corporation tax liabilities for companies, including adjustments to accounting profit.
- Explain the impact of VAT on business transactions and prepare basic VAT returns.
- Demonstrate awareness of the ethical implications of tax planning versus tax evasion.
Exam Format
- Duration: 2 hours.
- Structure: 50 objective test questions (2 marks each).
- Pass Mark: 50%.
- Tax Tables: Students are provided with tax rates and allowances during the exam.