Dean

System

What do you think to these?

13/06/2006 15:12:50
BTC - Redecoration, PCT and Tax (Em)



Hello,

I am very worried about my performance in this morings exam .

I did not adjust for the redecoration and I cannot find an example of this anywhere - does anyone know the answer?

Task 2.3 PCTCT

I took the adjusted profits and deducted the capital gains and added the share gain to form the PCTCT - was that correct?

Task 2.4 Tax Payable

I applied 30% tax to the PCTCT.

Then I thought about the dividends for ages and then I used the dividends paid rather than the dividends given so used the £100,000 and grossed them up. Then applied the marginal relief formula.

Because I got this task wrong will my answer to Task 2.5 be wrong?

I stated did not have to make payments on account as not making over £1.5 million and went on to detail the date of 9mths one day.

I did write about the payments on account.

Oh my word -sorry post so long - but very worried and now have PTC on Fri

Any thoughts welcome

System

Re:Dean

Hi Em

I didn't adjust for the redecoration either as this i classed as a revenue expense therefore allowable, it didn't indicate that it was capital expenditure.

The PCTCT figure I would agree that you take the adjusted profits figure and add the capital gain arsing from shares, but was there capital gains other than this and why did you deduct them? Also did you not claim your capital allowance worked out in the previous question?

Once you had made the PCTCT figure did you then add on the bottom to it the dividens received? To the come to your Profits for the year?

Dividends paid to share holders arern't taxable are they? You didn't need to do anything with the £100k, you would of only done something with dividends paid if they were NCD dividend.

The full rate of CT was applied - 30% with the marginal relief fraction reducing this.

something like this:

((c)1.2m - 1.5m) x PCTCT over profits x 11/400

Correct that there was no payments on account and CT payable 9 months and 1 day. You needed to explain the statory payments on account for large companies in the final memo.... I take it this is what you mean.

Hope this helps but as im only a wee student too it might be wrong and i fail lol

Regards

Dean

System

Re:Dean

Opps meant capital allowances - too much stress/panic!! I did deduct the capital allowance that I worked out!! So I think I got this task correct.

I only definantly got Task 2.4 wrong but hopefully will get a few marks for some correct method.

My Task 2.5 answer will be okay even though I got Task 2.4 wrong.

Fingers crossed for a pass

Hope you do well

Take care

Em :P

System

Re:Dean

Well done!

Regards

Dean