Ptc Unit 19 Discussion Forums For Dec 2008 Sittings

umerali2003

Hello every body i am starting this new thread for the students who are sitting Ptc Unit 19 in dec . The main purpose of this thread is to discuss the syllabus and approach towards the dec sitting . we all will discuss the key points involved in this unit and will try 2 help each other .All those students who are sitting Ptc Unit 19 in dec are requested 2 participate in this thread so we can share our thoughts ang gain the maximum knowledge and most importantly pass the exam in dec

Umer Ali

tattookitten

oh cool idea, i found the website and this forum really useful for my last lot of exams. I start college tonight so i'll probably have something to say after that!

anniem

Hi

I'm taking this exam in December, along with FRA, BTC and DFS - think I've got my work cut out to do this lot! :001_unsure:

Annie

umerali2003

any body started ptc ????

moneymotivated

Started last week, must say I am really looking forward to doing it. I enjoyed the business taxation unit but this one I reckon will be so much fun.

Also I have had numerous family members/friends asking me if I could help them with their tax returns and hopefully after December I will be able to do it!!

good idea to start this thread by the way :thumbup1:

tattookitten

I'm into my 3rd week now and wow theres a lot to remember, but it seems to be ok atm.

However did your tutors tell you that the forms in the text book are wrong? Apparently the text books were late going out because they were supposed to be reprinted with the new forms in, but when our tutor got them she had a look and they're still the old version.
She's decided that she's going to get print outs from the HMRC website, do the questions in the book and then give us copies of her answers so we get to know the new lay out. Also none of the past exam papers will have the new form layouts (obviously).

I'm sure it will be ok though.

umerali2003

well i am bit confused here which forms are u talking about ??? are they tax returns ????

tattookitten

Yeah sorry sweets I should've been more specific, i think they're the SA100, SA101, SA105, SA108. But you should check with your tutor before doing anything drastic as my tutor sometimes gets in a muddle.

But if you go on the HMRC wesite you can download all the return forms.

umerali2003

well our tutor gave us some forms today which were as follows

1 A form which was Authorizing Your Agent to allow and exchange matters within the responsibilty of HMRC

2 P45 Part 1 ( Details of employee leaving work ) copy for inland revenue office

3 P45 Part 1 (A) ( Details of employee leaving work ) copy for employee

4 P45 Part 2 ( Details of employee leaving work ) copy for new employer

5 p45 part 3 ( Details of employee leaving work ) for completion by new employer

6 P35 ( Employer Annual Return)

7 P14 ( End of year summary ) 2007-2008

8 P60 ( End of year certificate ) 2007-2008

Most of them are not relevant in the exam but it give us a very wide picture how the thing works but who knows AAT might throw some thing in the exam beacuase Chief Assesor mentioned on quite few occasions that students are heavily relying on text books and past papers and ignoring the practical aspect of the course

Big Bird

Hi

Count me in, only had one night at college and it was only an induction so the work should start this week, just one point our tutor said that the exam in December will still probably have the old forms, maybe thats something we will all have to look into

regards:biggrin:

umerali2003

yes your tutor was right + most of the books gets printed once a year so thats why most of the tutor printed out those forms 2 give an up 2 date knowledge 2 there students



UmEr AlI

kjg-kj

Our tutor confirmed that the December exams would have the new tax return forms in them.

She forbid us to look at the forms in the book (the old ones) so we didn't get confused.

She also told us the people who wrote our books didn't even realise the ITR forms were changing!!!

troy

Which year?

Im a little concerned, I am taking the unit 19 exams in December.
We are studying from the 2007/2008 books and our college says that the exams will be using that tax years syllabus, not 2008/2009. Is this information correct?:001_unsure:

kjg-kj

Yes we are studying for the 07/08 tax year, with the personal allowance of 522L.

Aparently you always study a year behind.

umerali2003

hello every body i am finished with income tax computation including benefits, Employment Income and Property Income etc and we are going to start Capital gain tax this week in the college . How is every one else going ???

tattookitten

Crazy as it sounds, but I have to admit I'm actually enjoying this class loads now. It might be what we're studying or that I'm more prepared or that theres some people in my class that amuse me, but its going well.

On Monday we looked at our new forms and they seem "ok" (I don't dare say easy). we just need to start doing some of the questions on the new forms.

Are you lot studying in classes, at home or online? If you're in a class does your tutor give you home work or is it up to you whether or not you study?

umerali2003

we got 2 lectures in 1 week both on same day so yes we cover a lot in 1 day but it gives us the whole week to practice at our own . At this level i think no body bothers about home work its up 2 u how u manage your self but our tutor do give us some practice question every week to do at our own or if we have any prob with those practice questions then we can email him or book an extra time to cover those problems Tomorrow we are going to start capital gains tax the second part of the paper . So far things are going smoothly for me but again its my resit i failed the second part of the paper in june 08 sitting so i am putting my foot on accelrator bit more as compared to other students in the class because 1 month before the exams i just want to do past papers and lot of practice questions because my review report by AAT clearly indicated the lack of practice in the 2nd part of the paper

UmER aLi

Big Bird

Tax Query

Hi There,
Can someone please help me with the query below:

Man earns 40,000 in 07/08 £8429 was deducted as PAYE. Dividend income was £4500, and a gift aid donation of 1170 was made. Personal allowance was £5225
Calculate the tax payable or repayable.

Thanks

smileyface

PTC in Dec

Hello,

I think it's a great idea to discuss the ptc exam for Dec. I'm sitting it but I have not yet looked at it yet. Is it supposed to be hard or ok? I'm starting to study it this week. I've done a lot of the pev as well and sitting that exam also.


S

umerali2003

hi i have done the question on the paper will post here after re checking it

umerali2003

Salary 40,000 Personal Allowance (5225)
Total 34775
Dividend 4500x100/90 =5000


Tax On Non Saving Income

2230@10% = 223
32370@22% = 7121.4. (32370+1500 = 33870 ) (1170x100/78 = 1500)
175 @ 22% = 38.5
_____
34775
Tax On Dividend Income

1325* @ 10% = 132.5 (1325 is the remaining basic rate band left )
3675 @ 32.5% = 1194.375
_____
5000
Total Tax Liability 8709.775
Tax Deducted at Source
PAYE ( 8429)
Dividend (500)

Tax RePayable (219.225)

I hope so this will help and is the correct answer to your question although i have not used the proper format of income tax computation because of the shortage of time

Umer Ali

Big Bird

Thanks a lot for the answer to my question, thats what I got as well, I though I was going wrong, its a question that has been set by college, but thats not the answer on the answer sheet the tutor has given us.

See Below

Tax on Savings.
2230 x 10% 223
32370 X20% 6853
1500 X 22% 330
175 x 40% 66

Tax onDividends
5000x32.5% 1625
Tax Payable 9097

Less Paid (500)
PAYE (8429)
Tax to pay 168

I have gone over and over the question as I do not expect college answers to be wrong, and its not a difficult question, and its easy to see where the given answer is wrong, but with the more complicated questions where you are not sure about your answer, you may take the answers to be correct when in fact they are not, I think I will have to take this up with college.

Anyway thanks for your help

umerali2003

Hello Big Bird

The Answer provided by your tutor is not making any sense 2 me because we are going 2 extend the basic rate band by 1500 but the answer u have provided they have actually taxed 1500 @ 22 % which is not making any sense 2 me because the total income is 34775 and 175 can not be taxed at 40 % becuase when we extended the basic rate band the new limit was 33870 so clearly the remaining 175 will be taxed at 22% not 40 % and after that they taxed dividend income of 5000 directly at 32.5% ignoring the fact that 1325 is the remaining limit left which can be taxed at 10%

one thing more see they have taxed 32370 @ 20 % which is worng because its a non saving income and they have have used the rate of saving income because the question they have provided have no saving income at all so how can they tax that under saving income .

i hope so this will clear your all doubts do speak with your tutor and discuss this question because the answer they have provided u is totally illogical , wrong and is not making any sense at all

Umer Ali

Big Bird

I think I may have confused things slightly the tax on savings should have said tax on income, but that does not alter the fact that the answer was wrong. Been to college tonight and had a word with the tutor, and at first he could not get what I was talking about, he then went through the question on the board with the whole class, and admitted that he had got it wrong, and he apologised, but now I am quite concerned as that was not a difficult question, and he should have been able to see it was wrong straight away.

Another query which came up tonight was the 30,000 exempt allowance for redundancy monies, Is this 30,000 in one tax year or is it 30,000 per redundancy payment, which could be spread over more than one year. Can anyone answer this query?

Thanks

umerali2003

Hello Big Bird
Nice to hear that your problem is solved . We all make mistakes it happens some time ... but the good thing is at least u r going through those questions at your own and discussing it back with your tutor and clearing all the confusions thats what we call learning process ...

coming back to your 2nd query

Redundancy payments are usually made on the termination of employment
The payments are taxable in the year which they are recived rather then be taxed in the year of termination
Firstly 30,000 is the exempt allowance for one year not for every redudency payment made in the same year
Secondly Yes you can spread this 30,000 exempt allowance within the year but not more than one year because the 30,000 exempt allowance is just for one year
Look at the example below

E.g if some one receives a redudency income of 10,000 on 31st of march 2008 and 40,000 in september 2008 How it will be taxed ?

first payment of 10,000 on 31st of march will be clearly exempt as it falls within in 30,000

2Nd payment
September 2008 40,000
Less exemption remaining (20,000)
Taxable in 2008/09 = 20,000

I Hope so this example will help u

Umer Ali

Big Bird

Another question

If an employee makes a capital contribution towards a car this is deducted from the value of the car, before the fuel benefits are worked out. If an employee makes a private use contribution, is this also taken off before the petol benefit is calculated or does this come off after the petrol benefit is calculated.:001_unsure:

ju2003

osborne books

Hi, I am sitting the exam in December too and I am hoping someone might be able to help me. I am using the osborne book and I have the answers up to chapter 6 but really need to know the answers for chapter 7 and the practice stuff at the back. If you have them please could you let me know....even just the final answers for the questions just so I can check if I am doing all this share stuff right!

Not long til the exam now....good luck to everyone!

rusbfs44

Re: Big Bird Car Contribution

The way I understand it is that contributions made to the company are tax deductable but if contributions are made on the fuel (no matter the amount) this is not deductable. Always 14400 times x%

rusbfs44

i have the answers for all questions in the osbourne book. send me an email to russell.smith@ndds.co.uk stating what chapter and i will scan them in and send them to you