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BTC How did everyone get on?

24

Comments

  • lala2009lala2009 Feels At Home Registered Posts: 95
    never heard of it and can't see it in my book? Is it in the Osborne book? :)
  • Crazy ChickCrazy Chick Feels At Home Registered Posts: 38
    ive never heard of it..i just ignored it as it is an allowable expense...the salry i added sorry not deducted from trading profit
  • LondinaLondina Experienced Mentor MAAT, AAT Licensed Accountant Posts: 814
    Ismal profit portion, he was in the company for 6 months, therefore the profit has to be split in two and then the portion for his part? is this correct?
  • LondinaLondina Experienced Mentor MAAT, AAT Licensed Accountant Posts: 814
    Crazy Chick wrote: »
    ive never heard of it..i just ignored it as it is an allowable expense...the salry i added sorry not deducted from trading profit

    part of the lease is a disallowable expense since the car was costing more than £15000
  • lala2009lala2009 Feels At Home Registered Posts: 95
    I split it in two and then in two again for Ismail's portion :)
  • hanapospishanapospis Well-Known Registered Posts: 111
    I also think It went ok.

    I was a bit confused with the part disposal.

    The land (20acres) cost 100.000 when bought. Part of it was sold for 150.000 (5acres) and rest of it was valued for 500.000. Logically if 20 acres cost 100.000 so 5 acres should have cost 25.000

    but when you do the calculation 100.000 * 150.000/650.000 you get 23077.

    So I put

    Proceeds ......150.000
    cost .............23.077
    indexation.......13177
    23.077 x 0.571
    gain.............. 113.177

    I was so confused...
  • lala2009lala2009 Feels At Home Registered Posts: 95
    how do we know whose car the lease was for?
  • EllybellybarbietoeEllybellybarbietoe Just Joined Registered Posts: 2
    SammySh wrote: »
    We just had to explain the ent relief to Emily think.

    Part disposal, threw me a bit too. I has proceeds, less cost of acq (100,000/20), less (indexation of £5000 x 0.257), less (100,000 x 150,000/(150,000+500,000)), is that what you all got?
    YAY! That's what I did!
  • Crazy ChickCrazy Chick Feels At Home Registered Posts: 38
    i didnt know it was disallowable... oh well..

    yes i did that too with the salary...
  • lala2009lala2009 Feels At Home Registered Posts: 95
    hanapospis I did exactly the same as you :)
  • beansprout64beansprout64 Feels At Home Registered Posts: 29
    didnt you have to split the profit in half (6months each).
    the first 6 months the original person (can't remember the name) got all of the profits.
    in the second 6 months when the other person joined. the original person got 10,000 of salary. then split the remaining profit in half for the 2 owners.
    does that make sense?
  • RichardRichard Trusted Regular Registered Posts: 373
    beansprout64 wrote: »
    didnt you have to split the profit in half (6months each).
    the first 6 months the original person (can't remember the name) got all of the profits.
    in the second 6 months when the other person joined. the original person got 10,000 of salary. then split the remaining profit in half for the 2 owners.
    does that make sense?

    Yes, thats what I did
  • hanapospishanapospis Well-Known Registered Posts: 111
    I have also added up the lease expense of 2.200 as it is a capital nature therefore disallowable.

    With the profit share..
    I have split it up in two 6 and 6 months. And the second part divided between two partners. Emily was also entitled to receive 10.000 as her salary from the profit...
  • RichardRichard Trusted Regular Registered Posts: 373
    hanapospis wrote: »
    I also think It went ok.

    I was a bit confused with the part disposal.

    The land (20acres) cost 100.000 when bought. Part of it was sold for 150.000 (5acres) and rest of it was valued for 500.000. Logically if 20 acres cost 100.000 so 5 acres should have cost 25.000

    but when you do the calculation 100.000 * 150.000/650.000 you get 23077.

    So I put

    Proceeds ......150.000
    cost .............23.077
    indexation.......13177
    23.077 x 0.571
    gain.............. 113.177

    I was so confused...

    I think that is the same answer as mine - I remember my tutor telling me that you calculate part disposal of land on value, and not on the acres.
  • JointyJointy Feels At Home Registered Posts: 78
    I did the CT payable at 28% i halfed the limits twice for the associates and prorated for the different financial years so for the 1,500,000 I had 281250 can anyone remember the profit figure for the 9 months?
  • Crazy ChickCrazy Chick Feels At Home Registered Posts: 38
    Proceeds ......150.000
    cost .............23.077
    indexation.......13177
    23.077 x 0.571
    gain.............. 113.177


    I got the same but the gain works out at 113746
    Proceeds less cost less indexation..
  • EllybellybarbietoeEllybellybarbietoe Just Joined Registered Posts: 2
    Crazy Chick wrote: »
    no but i remember they had put the rates in reverse order on the printout at the front i nearly used the 2007 ones for 2008...bit of a trick....

    what did you do with the salary for emily (was it her ) for 20k ? I time apportioned it to the 6 months and then deducted it of the trading profits ...what did you do?
    I never time apportioned it as Emily had been there for the whole year, the business had been trading for years, it was Ismail who had only been there six months. is this right? Should I have time apportioned it?
  • RichardRichard Trusted Regular Registered Posts: 373
    Ellybellybarbietoe wrote: »
    I never time apportioned it as Emily had been there for the whole year, the business had been trading for years, it was Ismail who had only been there six months. is this right? Should I have time apportioned it?

    She only started receiving a £20k salary in November, so needed apportioning to 6 months.
  • beansprout64beansprout64 Feels At Home Registered Posts: 29
    Jointy wrote: »
    I did the CT payable at 28% i halfed the limits twice for the associates and prorated for the different financial years so for the 1,500,000 I had 281250 can anyone remember the profit figure for the 9 months?

    did you half the limits twice. or divide the limits by 3 as there were 2 associates?
  • hanapospishanapospis Well-Known Registered Posts: 111
    I got the same but the gain works out at 113746
    Proceeds less cost less indexation..[/QUOTE]

    yes, you are right.. sorry for speeling mistake.. it should have been 113.746
  • JointyJointy Feels At Home Registered Posts: 78
    did you have to knock off the capital losses b/fwd off the 113746?
  • JointyJointy Feels At Home Registered Posts: 78
    i halfed the limits twice most people seem to have used marginal relief just wondering were i went wrong
  • Amy1234Amy1234 New Member Registered Posts: 10
    Does anyone remember what tax payable figure they ahd at the end, i ended up with something like 122,000!! :blushing: not too sure how.
    Also think i messed up the marginal relief, do u time apportion the upper and lower limits to use in the calculation.
    e.g for upper band 1500000/3 X 9/12?? giving u a upper limit of 375000?
    i'm stressin as i'm pretty sure i messed up the part disposal and the date questions....
  • Crazy ChickCrazy Chick Feels At Home Registered Posts: 38
    cheers hanapospis

    just panicking cos i think i have made some quite random errors ...
  • sleepymesleepyme New Member Registered Posts: 8
    you did not need to time apportion the corp tax as it does not when the year end falls as long as its a 12mth period. All you had to be aware of is the 2 Associated companies
  • hanapospishanapospis Well-Known Registered Posts: 111
    I had PCTCT as 452.516
    and Profits as 458 516

    For the 3 months period I had
    113.129 x 30% - 256 = 33 683

    For the 9 months period I had
    339 387 x 28% - 537 = 94 491

    Tax 33 683 + 94 491 = 128 174
  • lala2009lala2009 Feels At Home Registered Posts: 95
    you did have to time apportion the cap cos it was over 2 financial years - 3months FY07 and 9 months FY08
  • beansprout64beansprout64 Feels At Home Registered Posts: 29
    Amy1234 wrote: »
    Does anyone remember what tax payable figure they ahd at the end, i ended up with something like 122,000!! :blushing: not too sure how.
    Also think i messed up the marginal relief, do u time apportion the upper and lower limits to use in the calculation.
    e.g for upper band 1500000/3 X 9/12?? giving u a upper limit of 375000?
    i'm stressin as i'm pretty sure i messed up the part disposal and the date questions....


    my tax seemed really high but i'm sure i did all the formula correctly!
    i did the same with the limits. divided them by 3 then time apportion them (3/12 and 9/12) I think i messed the same things up as well!
  • lala2009lala2009 Feels At Home Registered Posts: 95
    Same as you again Hanapospis!
  • sleepymesleepyme New Member Registered Posts: 8
    I thought it was a 31 March 2009 year end
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