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Btc

2456

Comments

  • kjg-kjkjg-kj Feels At Home Registered Posts: 68
    I added back the Salary for Harrison and his wife. Added back £600 for the goods he took. Was debating on £800 though, but decided against it because he contributed £200.

    I deducted the cost of the land for the IBA. But I time apportioned the 4% by 10/12 because it was a 10 month period...not sure if that was right??
  • StaffzStaffz Feels At Home Registered Posts: 40
    I did that!

    280000
    (46000)
    ( 5000)
    ___________
    229000*4% = (9160/12)*10= 7633

    Right? I hope so!
  • cs_1988cs_1988 Well-Known Registered Posts: 231
    Kj - I did almost everything like you, did you deduct land preperation costs too, becasue their associated with the land.

    Fiorellino - You do apportin IBA my friend!
  • cs_1988cs_1988 Well-Known Registered Posts: 231
    YAYAYAYAY Staffz nice one! Its reassuring to see answers the same as yours!!!

    Did anyone else get something like 792 for the shares?
  • kjg-kjkjg-kj Feels At Home Registered Posts: 68
    I didn't deduct the land prep costs, in our Kaplan book it says qualifying costs include costs of preparing the land ie levelling, tunnelling and drainage.
  • KairiKairi Feels At Home Registered Posts: 25
    kjg-kj wrote: »
    I added back the Salary for Harrison and his wife. Added back £600 for the goods he took. Was debating on £800 though, but decided against it because he contributed £200.

    I deducted the cost of the land for the IBA. But I time apportioned the 4% by 10/12 because it was a 10 month period...not sure if that was right??

    My book definitely said that IBA and WDA are both time apportioned if the period concerned was not 12 months and FYA wasn't.
  • StaffzStaffz Feels At Home Registered Posts: 40
    Also added extra 600, to make up cost of aircon units.

    Disallowed wife's wages altogether, as wasn't a business cost, but left his in -argh!!! I guess that is key, as without it there are no profits so cannot show that I can work out the split year 19% & 20% - will it be a straight fail for section 1???
  • DJUKDJUK New Member Registered Posts: 5
    KJG KJ - Ohhh Thanks for that my mind is now at rest! I knew I saw that 'someone' had commenced in Trading that year just couldn't remember who......mind playing traicks and all that
  • KairiKairi Feels At Home Registered Posts: 25
    kjg-kj wrote: »
    I added back the Salary for Harrison and his wife. Added back £600 for the goods he took. Was debating on £800 though, but decided against it because he contributed £200.

    Sorry I meant to reply this as well earlier. I understand what you are saying about £600 rather than £800 but does it really matter that he paid money for it? Isn't just the amount of the sale (which is £800) that goes through P&L rather than cash flow.
    I don't know. I am just thinking out loud here because I deducted £800
  • Ash1711Ash1711 Feels At Home Registered Posts: 26
    kjg-kj wrote: »
    I didn't deduct the land prep costs, in our Kaplan book it says qualifying costs include costs of preparing the land ie levelling, tunnelling and drainage.

    thats exactly what i thought :D

    i think the answer came to 7800 after apportionment (10/12)
  • cs_1988cs_1988 Well-Known Registered Posts: 231
    There wasnt a split 19% 20% was there.

    End of section two was a ten month cap. So April, May, June, July, August, Sep, Oct, Nov, Dec, and Jan = 10months, all at 20% corp tax.

    They also gave three indexation factors to confuse us. i Used 17%
  • ma1thewma1thew Settling In Nicely Registered Posts: 22
    why was the taxt split between 2 years.
    it was 10 months from april untill january so where does the split come in?
  • Ash1711Ash1711 Feels At Home Registered Posts: 26
    did anyone create a seperate pool for the short life assets? i did and i dont know if this is correct or not:confused1:
  • StaffzStaffz Feels At Home Registered Posts: 40
    I agree, section 2 was the April to Jan period, was it not? Jeez, no wonder I am rubbish at exams, can't even remember 3 hours later!!!
  • bennyboy88bennyboy88 New Member Registered Posts: 8
    I didn't deduct the cost of preparing the land. i remember seeing somewhere that it is a qualifying cost.
    As for the shares i just remember that i had an indexation allowance of £91...?!
    The airconditioning units in the first one, i added on the £800 in which they were worth? didnt have a clue what to do for this one!
    The written questions, i dont feel like i wrote enough! oh well!!!
  • kjg-kjkjg-kj Feels At Home Registered Posts: 68
    When I was doing the corp tax I used 30% with marginal relief, but I suppose it depended on your other figures from the previous questions. I had a taxable profits for the company of seven hundred and something thousand
  • ma1thewma1thew Settling In Nicely Registered Posts: 22
    i got 9500 for iba
    285000 X 0.04 X (10/12)

    is this correct?
  • Ash1711Ash1711 Feels At Home Registered Posts: 26
    cs_1988 wrote: »
    There wasnt a split 19% 20% was there.

    End of section two was a ten month cap. So April, May, June, July, August, Sep, Oct, Nov, Dec, and Jan = 10months, all at 20% corp tax.

    They also gave three indexation factors to confuse us. i Used 17%


    wasnt section 2 taxed at 30% less marginal relief?
  • DJUKDJUK New Member Registered Posts: 5
    ash1711 I created a separate pool for the short lifeassets
  • FiorellinoFiorellino Feels At Home Registered Posts: 82
    corporation tax was at 30 % because Marginal Relief is given, am I right?
  • ma1thewma1thew Settling In Nicely Registered Posts: 22
    i got 700 and something thousand for the profit so i used marginal releif
  • StaffzStaffz Feels At Home Registered Posts: 40
    Yes, you nalways have a separate pool for S.L.A.- anything you intend to keep under 5 years I think, tho may be 3 - I always confuse those two! That's why accountant consult using books!
  • KairiKairi Feels At Home Registered Posts: 25
    Ash1711 wrote: »
    did anyone create a seperate pool for the short life assets? i did and i dont know if this is correct or not:confused1:

    Yes you are supposed to have a separate pool for SLA. And when an asset is not sold after 4 years it is moved to the general pool.
  • LondonMattLondonMatt Experienced Mentor Registered Posts: 1,110
    For Section one I got:
    Capital Allowances £67564
    Scd D Case 1 profits £53216
    NIC contributions £2667.36
    PCTCT (?) £174076

    Section two I got:
    IBA £7633
    PCTCT £735664
    Tax Liability £207841

    I can only save 7 answers in my calculator, so not sure about the rest - and the labels might be wrong as well... but those are the numbers I put
  • cs_1988cs_1988 Well-Known Registered Posts: 231
    OH Crap ****

    I deducted marginal relief to, please tell me i didnt use 20%!!!!

    Dont think i did, i remember making sure the months were 07 for the formula!

    What corp tax figure did you get?
  • bennyboy88bennyboy88 New Member Registered Posts: 8
    i used 30% less marginal relief.

    i think my tax payable was around 200k in the end... i think!
  • Ash1711Ash1711 Feels At Home Registered Posts: 26
    bennyboy88 wrote: »
    I didn't deduct the cost of preparing the land. i remember seeing somewhere that it is a qualifying cost.
    As for the shares i just remember that i had an indexation allowance of £91...?!
    The airconditioning units in the first one, i added on the £800 in which they were worth? didnt have a clue what to do for this one!
    The written questions, i dont feel like i wrote enough! oh well!!!

    i had the indexation allow of £91 surely we can't both be worng :001_tongue:
  • GoldenRetreiverGoldenRetreiver Feels At Home Registered Posts: 64
    End of section 2, I just had one tax year, however, they were eligible for marginal relief I hope
  • cs_1988cs_1988 Well-Known Registered Posts: 231
    London Matt....Snap!

    Think we might have made a mistake in the IBA if land prep is allowable though!
  • ma1thewma1thew Settling In Nicely Registered Posts: 22
    LONDONMATT

    i got nearly the same answers as you.

    was it just the entertaining staff expendite that was not allowable in the other expenses info.
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