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?
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
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?
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?
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?
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...
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.
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?
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?
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.
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?
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....
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
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!
Comments
part of the lease is a disallowable expense since the car was costing more than £15000
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...
yes i did that too with the salary...
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
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...
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.
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..
She only started receiving a £20k salary in November, so needed apportioning to 6 months.
did you half the limits twice. or divide the limits by 3 as there were 2 associates?
Proceeds less cost less indexation..[/QUOTE]
yes, you are right.. sorry for speeling mistake.. it should have been 113.746
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....
just panicking cos i think i have made some quite random errors ...
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
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!