PTC? Help please??

Sully786Sully786 New MemberPosts: 9Registered
Does any one know that Repainting window is allowable expese or disallowed expense for furnished and unfurnished property.

please reply back asap.

Any more tips if possible please??

I have problem with pension and when to expand the band??

try to explain if any body knows about it??

it will be appreciated.

Comments

  • jackiejackie Feels At Home Posts: 81Registered
    hi,

    I am doing PTC too tomorrow....I would say that repainting a window comes under repairs, maintenance, redecoration therefore allowable expenditure.

    With regards to the pension, if it is an occupational pension plan do not expand the band as the tax is paid before PAYE, so deduct an employees contributions in the calculation of their asessable employment income. However, if it is a personal pension plan expand the band when calculating the net income tax payable as you would for gift aid.

    Hope this helps....good luck for tomorrow

    Jackie
  • kyle1kyle1 Feels At Home Posts: 31Registered
    Sully786 wrote: »
    Does any one know that Repainting window is allowable expese or disallowed expense for furnished and unfurnished property.

    please reply back asap.

    Any more tips if possible please??

    I have problem with pension and when to expand the band??

    try to explain if any body knows about it??

    it will be appreciated.
    my understanding would be as the window is being painted it is classed as a revenue expense i.e.repairs and renewals you would be allowed to charge it against the rental income.

    the pension will only be used to extend the band when it is a private pension but remeber you need to gross up the amount paid as the are paid at net of tax therefore you need to divide the amount by (.78). The occupational pension is the one that is paid out of there employement income and is taken of there income at source.
  • speegsspeegs Experienced Mentor Posts: 854Registered
    Hi Sully

    Jackie advice is 100% spot on. I would just like to give you one extra tip.

    FIrstly, with the rental expenses. Only revenue expenditure can be deducted as an expense. Capital expenditure cannot be deducted. Repairs and renewals and maintenance would be revenue expenditure and therefore can be deducted. If however you build a new extension onto the property, this would be capital expenditure and therefore would not be deductible.

    Secondly, pensions. With a occupational pension this is deducted from your salary, so remember that when you complete the salary box on the employment pages of the tax return, the figure you should enter is the salary less the pension contributions. You may have noticed that on the June 07 exam the AAT did not deduct the occupational pension from the salary on the tax return. I have taken the trouble to query this with HMRC and they have confirmed the answer shown was incorrect and the pension should have been deducted. REMEMBER though that this only the case for OCCUPATIONAL PENSIONS and not personal pensions.

    All the very best for tomorrow although I sure we will all be fine.

    Good luck

    Speegs
  • hunterhunter Feels At Home Posts: 54Registered
    jsut looked at June 06 paper and cant understand why for 1.1 wear & tear allowance has been given for the full 12 months when flat only let for 9 months, 3 months being bad debt not recoverable. should the wear & tear allowance not be 10% of rent received ie £3600 and not for whole year £4800. Please can somebody help me understand this, thought i was doing well until now :(
  • kyle1kyle1 Feels At Home Posts: 31Registered
    hunter wrote: »
    jsut looked at June 06 paper and cant understand why for 1.1 wear & tear allowance has been given for the full 12 months when flat only let for 9 months, 3 months being bad debt not recoverable. should the wear & tear allowance not be 10% of rent received ie £3600 and not for whole year £4800. Please can somebody help me understand this, thought i was doing well until now :(
    i have just completed this paper and it did puzzle me at first to, but my understanding is that the rental should be based on the accrual basis and even though the tennant left they should of received a full years rental income hence the bad debt you write off in the expenses. This being the case then the actual rental income for wear and tear purposes is 4800 and the 10% is the 480.

    Hope that helps

    kyle
  • speegsspeegs Experienced Mentor Posts: 854Registered
    Hi Hunter

    The wear and tear allowance is similar to the agency fees. The percentage is calculated based on the "rental income receivable", not what you actually receive. There will be a difference between these two figures unless you have a bad debt.

    I hope this makes sense. Just base it the maximum amount of rent you should have received during the tax year, rather than what you did receive, and you should be fine.

    :thumbup1:

    Speegs
  • hunterhunter Feels At Home Posts: 54Registered
    thanks very much kyle1 i understand that now, haveto remember if it comes up tomorrow :)
  • speegsspeegs Experienced Mentor Posts: 854Registered
    Exactly Kyle. You have expressed it far better than me.

    Thanks

    Speegs
  • hunterhunter Feels At Home Posts: 54Registered
    thats great speegs, thanks very much :)
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