I will Help!!!!
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thanks u r an angel0

Okay, first let's start with NIC
People who are employed under the PAYE pay NIC at 11% These are Primary Class 1 Contributions.
Employers who employee people on a payroll pay NIC of 12.8% these are defined into 2:
Class 1 Contributions  these are at 12.8% of each employees gross pay....employees are entitled to earn Β£105 per week before paying NIC
Class 1A Conributions  these are at 12.8% on benefits in kind..
So for example....if an employees earns Β£479 per week and has use of a car and the benefit is Β£3120
The employer will pay
Class 1  (479105) x 12.8% (per week)
+
Class 1A Β£3120 X 12.8% = Β£399.36
If you are a sole trader/partnershp (not under PAYE) you pay 
Class 2 which are Β£2.30 per week unless you claim the small earnings excepion which is profits under Β£4,825 and Class 2 or 4 need not be paid
Class 4  People who have profits over Β£5,435 are liable to pay Class 4
it is 8% on profits between Β£5435 and Β£40,040...therefore if you have profits of Β£6000 you are liable to pay Class 2 at Β£2.30 per week = Β£2.30 x 52 = Β£119.60
and also Class 4  take your profits of Β£6,000  Β£5,435 = Β£565 x 8% = Β£45.20
If your profits exceed Β£40,040 you pay them a 1%...
HOPE THIS CLEARS UP NIC.....0 
BADGES OF TRADE are tests to help ecide whether HMRC believe an activity should be classed as traing. (therefore they will have to declare it and pay tax if it is trading!)
There are 6 badges of trade: 
PROFIT MOTIVE
briefly are they out to make a profit, if they are this indicates trading!
SUBJECT MATER OF THE ACTIVITY
does the individual use it for personal use, if not then they are deemed to be trading
LENGTH OF OWNERSHIP
If items are sold quite quickly, they are deemed to be trading!
FREQUENCY OF TRANSACTIONS
If there is a series of similar ransactions they are deemed to be trading
SUPPLEMENTARY WORK
Do they make repairs to the item or work on them o update or renew them? If so they are deemed to be trading
REASONS FOR ACQUISTION AND SALE
If the individual has a deemed purchase and sale ...i.e has an intention to sell....it s deemed trading...
Hope ths helps!!0 
how do you keep so much info in your brain without it turning to mush0

can u tell me all of the PEV ratio and the formula please?0

]Yes No probs 
GROSS PROFIT MARGIN
GROSS PROFIT / SALES X 100
NET PROFIT MARGIN
NET PROFIT/SALES X 100
OPERATING PROFIT %
OPERATING PROFIT / SALES X 100
EXPENSES AS A % OF SALES
EXPENSES/SALES X100
RETURN ON CAPITAL EMPLOYED
OPERATING PROFIT / CAPIAL EMPLOYED X 100
NTEREST COVER
OPERATING PROFIT / INTEREST
ASSET TURNOVER
TURNOVER / FIXED ASSES + NET CURRENT ASSETS
CURRENT RATIO
CURRENT ASSETS/CURRENT LIABILITIES
GEARING
LONG TERM DEBT / CAPITAL EMPLOYED (THERE IS OTHER OPTIONS AVAILABLE BUT I PREFER THS ONE)
QUICK RATIO  ACID TEST RATIO  LIQUID CAPITAL RATIO
CURRENT ASSETS  STOCK / CURRENT LIABILITIES
CREDITORS PAYMENT PERIOD IN DAYS
TRADE CREDITORS/ TRADE PURCHASES (OR COST OF SALES) X 365 ... OR 12 FOR MONTHS
DEBTORS COLLECTION PERIOD IN DAYS
TRADE DEBTORS/ CREDIT SALES X 365....OR 12 FOR MONTHS
STOCK TURNOVER IN DAYS
STOCK/ COST OF SALES X 365 OR 12 FOR MONTHS
RETURN ON NET ASSETS
OPERATING PROFIT/NET ASSETS
AVERAGE AGE OF STOCK
0.5 X (OPENING STOCK + CLOSING STOCK) (THERE IS OTHER OPIONS AVAILABLE)
COST PER UNIT
COST/UNIT
CONTRIBUTION MARGIN
CONTRIBUTION / TURNOVER X 100
EFFICIENCY RATIO
STANDARD HOURS FOR ACTUAL PRODUCTION / ACTUAL HOURS X 100
CAPACITY RATIO
ACTUAL HOURS/BUDGETED HOURS X 100
ACTIVITY RATIO
STANDARD HOURS FOR ACTUAL PRODUCTION/BUDGETED HOURS X 100
PROUCTION VOLUME RATIO
ACTUAL OUTPU/ BUDGETED OUTPUT X 100
HOPE THIS HELPS!!0 
HAHAH PRIMBLE.....I don't to be honest0

Hi beckstar,
Very kind of you to give up your saturday!
Sitting PEV tomorrow, fairly confident, but one area i just cant find/understand in my book is how to explain fixed overhead variance, what they mean and show?
ANy Ideas?
Cheers in advance,
Chris0 
Wow!
Do you think you missed any? LOL
:001_tt2:0 
No problem I am sitting PEV tommorrow aswell so helps me out....
When you say fixed overhead variance are you refering to:
Fixed overhead expenditure variance
Fixed overhead volume variance
Fixed overhead efficiency variance
Fixed overhead capacity variance
Ge back to me just to verify ths is what you mean and I'll answer your question0 
Hi Troy....I was revising them last night so I'd fort I'd list all of them that they could throw at us lol0

lol people are studying so hard they dont know what day it is. dam exams.
i'm so not doing distant learning next time0 
Yeah all of them, Fixed overhead Expenditure is obvious, but the other three. Calculating them is no problem, explaining what they mean is another story!
Yeah, got three exams this week, you? Actually looking forward to PEV and PCR, not so much dfs!0 
sorry to bother you again, but can u tell me what each ratio mean(gd or bad etc) TYVM0

i'm picking you brains again too. on btc can you please explain FYA, AIA, WDA0

Hey cs
Fixed Overhead Expenditure Variance
This variance shows whether actual spending on fixed overheads was more than budgeted if adverse or less than budgeted if favourable. Reasons for variance could include poor budgeting or that actual costs are different due to unforseen price changes. Because these overheads are "fixed" it cannot be due to different output.
Fixed Overhead Volume Variance
this shows the difference between the overheads that would be absorbed by the planned volume of output and the amount absorbed by the actual output. The breakdown of this variance into Efficiency and capacity explains why there had been higher or lower output than the budget forecast.
Fixed Overhead Efficiency Variance
this variance shows how the efficient use of resources effects the volume of output. Favourable = output has been created using less resources than had been expected and quicker than bugeted for. May have worked more efficient due to better materials, better trained labour etc
Fixed Overhead Capacity Variance
this variance shows how the amount of resources used compared with the budget affects the volume of output. Favourable = is when they have over absorbed  more resources have been used therefore spreading the fixed overhead costs more widely. may have produced more due to bad budgeting, better raine teamforce etc
Hope that helps!
Yes I have PEV, BTC and PTC...I just want to ge them out the way lol0 
I have got PCR and PTC Beckstar
How are you finding PTC? I am finding it the worst one of the lot! So many niggly little rules to remember. I think I have just got the hang of section 1. Going over section 2 now0 
Thanks beckstar0

If the question ask:
calculate fixed production overheads absorbed into production
would you work out that is was the standard fixed overheads for actual production?
I messed up a question because I didn't understand what was actually required!0 
Hey david  i will try to do my best
GROSS PROFIT MARGIN, shows how much gross profit you have as an %  the higher the better , we want it to increase over time.
NET PROFIT MARGIN, shows how much net profit you have as an %. the higher the better , we want it to increase over time. If it is low it s generally due to costs arisng.
OPERATING PROFIT % shows how much operating profit you have as an %, his is before interest charges and tax. It is the final figure of what you have made!
EXPENSES AS A % OF SALES, shows a expenses as a % of your turnover....how much of your turnover was spent on tha exact expenses, helps planning an reducing costs
RETURN ON CAPITAL EMPLOYED
The return as a % you get on your money employed  generally want this to be high and increasing over time.
NTEREST COVER
shows how many times you can afford to pay your interest, want this high so we can afford interest payments if not the company is in bother
ASSET TURNOVER
is the number of times the value of the assets has been obtained in sales.
CURRENT RATIO
i shows the number of times that the curren liabilites are covered by the current assets. ideally 2:1
GEARING
shows how much as a % the company is finanaced by debt want this to be as low as possble preferably below 50%
QUICK RATIO  ACID TEST RATIO  LIQUID CAPITAL RATIO
shows that the current liabilities can be covered by the companies current assets excluding stock beacuse that is the least liquid current asset. The guide is 1:1
CREDITORS PAYMENT PERIOD IN DAYS
how long it take sus to pay suppliers, try and make terms so that the company gets as long as possible to help cashflow
DEBTORS COLLECTION PERIOD IN DAYS
how long it takes for debtors to pay us  want this as soon as possible in order to improve cashflow  money is better in our pockets than thers!!!
STOCK TURNOVER (IN DAYS or months)
shows the number of times per year that the stock is turned over or sold. the result can also be the average holding of stock in days or months.
RETURN ON NET ASSETS
the amount of return you get back on your net assets. want this to be fairly big
COST PER UNIT
dividing the cost by a unit e.g. materials cost by 100 units
HOPE THIS HELPS!!0 
Hi,
I always get confused in BTC with the different rules for Income tax and Corporation tax can you help me with the different rules?
Thanks0 
PEV Volume Variance
Hi Hope you dont mind me asking.
But with the fixed overhead capacity variance, and the efficiency variances i am normally fine working these out, but i keep getting caught out with the volume variance.
The Fixed overhead volume variance is broken down into efficiency & capacity just wondering if there is a good way of working out the volume if you know the efficiency & capacity.
Also with the lifecycle costing, can depreciation be involved if it can how can we deal with this.
Thankyou very much for your help.
Zoe, Good luck to all tomorrow:001_smile:0 
Primble, sorry i'm late on replying
AIA  ANNUAL INVESTMENT ALLOWANCE
This can be claimed up to Β£50,000 per year, it applies to all plant and machinery except CARS
Any acquisitons that exceed 50,000 wll be dealt with through the pool.
This allowance will need to be apportioned for shorter CAP'S
FYA  FIRST YEAR ALLOWANCES
These are 100% Only for low emission cars 110 g or lower. These are added on to AIA Claims and Capital Allowances worked through the pool
WDA  Writing Down Allowances 20%
Theseare for assets that enter the pool.
20% is allowable for the main pool and 20% or Β£3,000 which ever is lowest for expensive cars
These also nee to be apportioned for llong CAP'S I.e longer than 12 months
If you have any more problems I'll try o answer them.0 
Chris
Finding PTC the best actually, not revised too much though saving that for Wed and Thurs !!0 
Londina,
quite possibly but I don't quite get that myslef....f you tell me the quesion and answer I'll try to get back to you with a better answer...0 
Ino t is quite tricky to remember this especially if you are doing both exams like me!!
PTC  Income Tax
Personal Allowance 6035
Using tax bands 20%  40%
Capital Allowances (INC AIA +FYA)
CGT:
Annual Exempt Amount Β£9,600
Rate of 18%
Part Disposal Rules
Chattel Rules
Improvement Expenditure
Shares
Gift Relief
Rollover Relief
Entrepreneurs Relief
BTC Corporation Tax
Marginal Relief
Corporation Tax Profits 21%, 28%
Capital Allowances (inc AIA, FYA)
Indexation Allowance
Part Disposal Rules
Chattel Rules
Improvement Expenditure
Shares (Remember the indexation)
Rollover Relief
That's all I can think of atm!!!
Need any more help let me know!!0 
Hi Zoe
Yes if you know the fixed overhead capacity variance, and the efficiency variance... I just make i easier for myself and take one of the other.
Or I take the standard hours for actual production  budgeted hours and mutliply by the absorpton rate.
All 3 link you see:)0 
Thanks
Thankyou very much for your help worried about tomorrow.
Zoe0 
Don't be  your'll be fine0

In PEV, I'm a bit confused by currency variances. I think it has only come up in Dec 05 (maybe due to come again .. ??). Is this the right formula as my notes from class are a bit vague :001_unsure:
Actual quantity x (standard price  standard price at new rate) = variance due to currency
Actual quantity x (standard price at new rate  actual price) = variance due to other reasons
Osbourne only has one little question on it so I just want to check in case :thumbup1:0
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