Business Tax Exam.

lc1234

Did anyone else think it was unclear in section 2 that the chargeable gain of £6700 was not detailed in the P&L provided, it is normally in there but was unclear so did not know if I should deduct it when adjusting profits or not? (in the end I deducted it and put a note to the examiner stating that it was unclear so I was assuming it was included).

Also in section 1 did anyone else time apportion the partners £15,000 salaries over the 8 months for period 1 (to Dec 06) and did anyone bother getting involved with overlaps?

Thanks

laurenw

Hi,

Your not allowed to discuss the paper until 3pm.

I thought it was overall ok, all the information on the data page threw me abit though.

sebastianforbes

i think it was a fair exam... i haven't scored 100% but i still think it was a fair exam.

finished an hour early... couldn't improve upon it anymore !!!

>Michaela<

I thought it was a horrible exam, will discuss the rest later!

warrants

I didnt think it was to bad - section 2 was abit unclear in parts and im sure I've made mistakes but fingers crossed i did enough to pass. I finished after an hour and a half.

cat12

hi,

i thought it was ok to start with but got confusing as i went on!

lorrfish

not sure about this one

I thought it went ok or at least better than unit 8. But im not convinced I have done enough to pass. I did what I always do - come out of the exam thinking oh I didnt do this n oh I didnt do that then convince myself I have failed. Oh well what will be will be, Hope everyone gets what they deserve for working so hard - a big fat pass!
Lor

laurenw

There was a few tricky bits, so all the rules needed to be learnt.

All in all, it was ok, i was prepared for alot worse.

I also left an hour early.

Roll on 3pm so we can discuss it!!

Maybes

I was disappointed with the exam. Some parts of it unclear to me.

angel

I hated the exam, the only part I felt confident on was the CA's in sections 1 - What a nightmare! :thumbdown:

snooop

it was a pretty simple exam and most people left within the first hour and half

jilbo

I thought it was a dream and left at 11.15 after checking through everything twice. There were so many things I'd learnt and didn't use today, I'm gonna revise just as thoroughly for Friday's PTC cos I've a feeling there may be some nasty surprises in there!

lmiddleham

i thought it was a pretty horrible paper. normally i can judge after whether i've passed or not but i'll have to wait and see on this one.

i managed to answer everything and show good workings out so i'm hoping i got enough out of it to pass.

good luck everyone!

Emma1708

I made one stupid mistake but overall I thought it was ok. I was disappointed that a few things I had spent a long time learning did not come up. Will come back on at 3pm for the specifics

GoldenRetreiver

Well now its 3pm - on part 2 was it a small company or medium company for tax purposes?

phoebe

did i miss something really obvious or did anyone else notice they gave us an already calculated capital allowance figure (section2 ) for a 15month period for a ltd company when the textbooks drum into you that a capital allowance computation should be calculated for each CAP separately? i just time apportioned it after deducted from trading profits. i.e. divide 15 x 12.
also are speeding fines by employees allowed? i know parking fines by employees are and directors speeding fines aren't but never come across employees speeding fines before! disallowed it anyway!
xx

oxongirl78

I was quite pleased with the exam overall...and was expecting much worse!!

In answer to lc1234's question, I did time apportion the partner's salaries to £10,000 each and then split the remaining £12,000 between them at the 3:2 ratio. I hope that £32,000 profit figure was correct :-)

Section 2 seemed more straighforward than I expected. Did everyone else get profit figures that were below the lower limit, so no marginal relief fractions required?
Then to get the corp tax figures I split the PCTCT from the first 12 months into 3 months on one tax yr at 19% and the other 9 months at 20%
I hope that was the right thing to do??

Did everyone remember to adjust for the trading losses brought forward? I wasn't sure where to put it, so I put it in the PCTCT calc.

Good luck all!!

Emma1708

I got both profit figures below the lower limit and split between the two financial years. I was not sure about speeding fines and cant find anything in BPP or Osborne that says what to do with them.

I messed up on the national insurance and did his profit x 8% instead of taking the lower limit off - hopefully that wont be enough to fail though - fingers and toes crossed!

With the capital allowances I deducted from the trading profit, along with the IBA and the losses then split this amount into the 12 and 3 month periods. After reading a reply on here though have I done that wrong?

x

*rockchick*

Yep I got £32000 then deducted £20000 for salaries then spilt the remaining!
How did everyone feel about the emails?

GoldenRetreiver

Emma
I did the same as you with trading losses, however, I totally messed up last part - for some silly reason I classed them as medium sized company and did all the marginal relief! Guess Ive failed this one

popcornlpw

Yeb, I got the profit same as your 32000 Dean 72000 Dorothy 48000

but the PCTCT I have 06/07 6months x 19%

07/08 6months x 20%

Emma1708

that on its own shouldnt mean a fail. Try not to worry

oxongirl78

sorry yes - it was a 6 month split...getting confused lol

popcornlpw

when you caculated the Dean TT NI did anyone add up his salaries as well
I add salaries 15000
trading profit 10579
less personal allowance 5225
then x 8%

any one did the same?

Emma1708

popcornlpw wrote: »

when you caculated the Dean TT NI did anyone add up his salaries as well
I add salaries 15000
trading profit 10579
less personal allowance 5225
then x 8%

any one did the same?

I think that is what should have happened, I did that but without taking off his £5225 - because I am a stupid idiot!

oxongirl78

yes £25,579 - £5,225 = £20,354 x 8% = £1,628.32 class 4 NICs

Gianfranco Zola

popcornlpw,

Yeah, I used the same figures as you; my total contributions were £1,772.72

angel

Reading everyones comments I have surely failed - I dont know whether it was just that my mind went blank or I didnt revise it, but I was really unsure about most of the paper.

The only thing I feel slightly certain about was calculating the capitals allowances and the memos.

I deducted the loss brought forward when calculating the adjusted trading profit as I was unsure where it should go (we have never covered this before) and I took off marginal relief, as I remember a past paper used it even though the 'profits' were not between the bands.

My overall feeling is that I have failed - So much for starting CIMA:sad:

warrants

I got £32,000 for the profit. I messed up on the salaries as I didnt add it to the profit calculation and instead added it to Dean's NIC's calculation hopefully it wont cause me to fail.

I also split the PCTCT by 12 months and 3 months from what i remember. I added the carried forward loss onto the trading profits calculation.

For the Corporation tax part I did 19% and 20% as I thought it was below the lowest rate?

popcornlpw

Gianfranco

Why you got £1772.72 ?

I only have

1742.72(lass2 114.40 + 15k+10579 x8%)

Gianfranco Zola

typo - sorry