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??
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.
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.
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???
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
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
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
i think the answer came to 7800 after apportionment (10/12)
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!!!
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
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!
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:
Comments
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??
280000
(46000)
( 5000)
___________
229000*4% = (9160/12)*10= 7633
Right? I hope so!
Fiorellino - You do apportin IBA my friend!
Did anyone else get something like 792 for the shares?
My book definitely said that IBA and WDA are both time apportioned if the period concerned was not 12 months and FYA wasn't.
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???
thats exactly what i thought
i think the answer came to 7800 after apportionment (10/12)
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%
it was 10 months from april untill january so where does the split come in?
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!!!
285000 X 0.04 X (10/12)
is this correct?
wasnt section 2 taxed at 30% less marginal relief?
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.
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
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?
i think my tax payable was around 200k in the end... i think!
i had the indexation allow of £91 surely we can't both be worng :001_tongue:
Think we might have made a mistake in the IBA if land prep is allowable though!
i got nearly the same answers as you.
was it just the entertaining staff expendite that was not allowable in the other expenses info.