I got the same profit and PCTCT as you and also the tax liability looks familiar!!! Well I used the same calculations, maybe just rounding differences!! Fingers crossed

similar figures, only £2000 circa more, maybe is caused by the lease not being part disallowed!

I got dates wrong for the second email too! I put 9 months and 1 day for the return to be done! Realise now this is the dates for payment and it should have in fact been 12 months from the date of accounts!

I am starting to really worry about this mornings exam!!

Firstly, took the total net profit, deducted emilys salary of 20k then apportioned profits equally? (But cant remember if there was a 'wages & salaries' cost to take out emilys salary for taxable trading profits if that makes sense?...cos I didn;t at it back!!)

The dates for tax payable I got:
08/09 = 31/01/09,31/07/09 & 31/01/10
09/10 = 31/01/10,31/07/10 & 31/01/11

I think (fingers crossed) I got the lease car formula correct, but I put political donations as disallowable is that correct?

For the sale of land, I found the cost then took the indexation from the cost calculated?

I did divide PCTCT by 3 and time apportion 3/12 & 9/12!!

I reallly really don't know if I have done well! I have ECR (unit 6), I have FRA (unit5) tomorrow and I have PTC on Friday!! CAN NOT WAIT FOR THE WEEK TO BE OVER!!

I am starting to really worry about this mornings exam!!

Firstly, took the total net profit, deducted emilys salary of 20k then apportioned profits equally? (But cant remember if there was a 'wages & salaries' cost to take out emilys salary for taxable trading profits if that makes sense?...cos I didn;t at it back!!)

The dates for tax payable I got:
08/09 = 31/01/09,31/07/09 & 31/01/10
09/10 = 31/01/10,31/07/10 & 31/01/11

I think (fingers crossed) I got the lease car formula correct, but I put political donations as disallowable is that correct?

For the sale of land, I found the cost then took the indexation from the cost calculated?

I did divide PCTCT by 3 and time apportion 3/12 & 9/12!!

I reallly really don't know if I have done well! I have ECR (unit 6), I have FRA (unit5) tomorrow and I have PTC on Friday!! CAN NOT WAIT FOR THE WEEK TO BE OVER!!

I hope it went OK for everyone!!

Can you please explain me the lease car formula? I have never heard of it....

as far as the profit share... I have deducted only 10.000 from the profit as Emily was entitled the salary from 1.10 when Ismal joined the business ( I hope) so only 6 months from 20.000pa salary..

The dates for tax payable I got:
08/09 = 31/01/09,31/07/09 & 31/01/10
09/10 = 31/01/10,31/07/10 & 31/01/11

I put that he wouldnt need to make any payments on account for 08/09 if it was his first year in self-employment. I'm not 100% sure if that is the correct answer though.

Ah looks like I got that wrong as well! I could me on my way to failing this one!!

Erm... also looking in the book I got the formula wrong for the lease car!

Well because the car is just leased and not your asset it, it has to be restricted like a capital allowance. Over 12k is an expensive car. So there is a restriction fraction that is.... (Cost of car + 12,000)/cost of car X annual rent charge of lease. I couldnt believe it came up.. I thought it wouldn't in a million years!!

Did you gross up the dividends to 6,000 on the profits calculation?

Yes, the dividends in Profits calculation was 6.000 (5400x100/90)

I am studying with distance learning provider from Osborne books.. and there is nothing about the restriction. This is the first time I have heard about it :crying:
From which book have you been studying?

Where did the market value of the land come in ???

I calculated the usual way, quarter of land cost x RPI and deduct from sale price etc, but I also calculated the market value of the land. It sold for 150k, but the market value was 166.6k - I was tempted to add/deduct the 16.6k from the gain, but didnt in the end :001_unsure:

I didn't read too much into the penalties, dates etc, just a quick skim, and there were loads of questions on it :thumbdown: Think I was ok on the penalties, but the dates were a little hazy, and I'm sure they must be different, given pretty much the same question appeared in both parts.

Fingers crossed, felt the calculations on the whole were ok (apart from apportioning PCTCT (and I'm usually good at noticing that sort of thing ) I feel I showed competency in the calculations, but not so hot on the theory.

I find some of these exams difficult, given they have 0% to do with my job :glare:

I've never seen nor heard of this hire charge forumula, so I left it as allowable. It's definitely NOT in the osborne books

oh phooey! I knew it was a mistake to see how folks had done...Thought it had seemed to easy....

Forgot to deduct indexation allowance on the part disposal but did the calculation correctly.

Didn't notice the 2 tax years but did divide the limits by the 3 for the 2 associate companies.

Ignored the lease car as a revenue expense (Don't recall seeing this in the osborn book either) and said so.

Didn't do anything with Emily's salary as the first item said her adjusted profits were xxxxx. Surely this takes into account her salary as drawings and is already added back? I did say that in my answer.

Not looking forward to PTC on Friday.

Looks like yet another resit. Think I might give audit and cash management a whirl instead of the 2 tax units

you will be fine all of the above are quite minor mistakes which, as it was an exam pressure will be taken into account. Also it looks as though everyone has done sort of the same thing so this will to be taken into account when marking the papers. I'd bet money on it x

## Comments

814MAAT, AAT Licensed Accountantsimilar figures, only £2000 circa more, maybe is caused by the lease not being part disallowed!

22Registered78RegisteredI think the lease charge thing is 1/2 x (cost - 12000) / cost x hire charge. The hire charge was something like 2252 i disallowed 254 of it.

111RegisteredI have never heard of this... it is not in Osborne book, not only a mention of it.

25RegisteredI am starting to really worry about this mornings exam!!

Firstly, took the total net profit, deducted emilys salary of 20k then apportioned profits equally? (But cant remember if there was a 'wages & salaries' cost to take out emilys salary for taxable trading profits if that makes sense?...cos I didn;t at it back!!)

The dates for tax payable I got:

08/09 = 31/01/09,31/07/09 & 31/01/10

09/10 = 31/01/10,31/07/10 & 31/01/11

I think (fingers crossed) I got the lease car formula correct, but I put political donations as disallowable is that correct?

For the sale of land, I found the cost then took the indexation from the cost calculated?

I did divide PCTCT by 3 and time apportion 3/12 & 9/12!!

I reallly really don't know if I have done well! I have ECR (unit 6), I have FRA (unit5) tomorrow and I have PTC on Friday!! CAN NOT WAIT FOR THE WEEK TO BE OVER!!

I hope it went OK for everyone!!

111RegisteredCan you please explain me the lease car formula? I have never heard of it....

as far as the profit share... I have deducted only 10.000 from the profit as Emily was entitled the salary from 1.10 when Ismal joined the business ( I hope) so only 6 months from 20.000pa salary..

373RegisteredI put that he wouldnt need to make any payments on account for 08/09 if it was his first year in self-employment. I'm not 100% sure if that is the correct answer though.

25RegisteredErm... also looking in the book I got the formula wrong for the lease car!

Well because the car is just leased and not your asset it, it has to be restricted like a capital allowance. Over 12k is an expensive car. So there is a restriction fraction that is.... (Cost of car + 12,000)/cost of car X annual rent charge of lease. I couldnt believe it came up.. I thought it wouldn't in a million years!!

Did you gross up the dividends to 6,000 on the profits calculation?

111RegisteredI am studying with distance learning provider from Osborne books.. and there is nothing about the restriction. This is the first time I have heard about it :crying:

From which book have you been studying?

25RegisteredDo you know how easy going they are with pass rates/errors

111Registered111Registeredlook at my answers here:

http://forums.aat.org.uk/showthread.php?t=22818

373RegisteredI hope your answers are right, they seem pretty similar to mine!!

Good luck.

95RegisteredAnd mine!! We will be fine:thumbup1:

7RegisteredThe formula is:

½ x (Retail price when new - £12000)x Hire chargeRetail price when new

I got £254 & added this back to net profit which seems right according to the textbook.

Saying that I think I totally mucked up the apportionment for the two tax years in section 2 & my dates for the tax payable in section 1.

Just have to wait till August & see what happens! I hope whoever said 60% for each section is all that's needed is correct!! :001_unsure:

17RegisteredI calculated the usual way, quarter of land cost x RPI and deduct from sale price etc, but I also calculated the market value of the land. It sold for 150k, but the market value was 166.6k - I was tempted to add/deduct the 16.6k from the gain, but didnt in the end :001_unsure:

I didn't read too much into the penalties, dates etc, just a quick skim, and there were loads of questions on it :thumbdown: Think I was ok on the penalties, but the dates were a little hazy, and I'm sure they must be different, given pretty much the same question appeared in both parts.

Fingers crossed, felt the calculations on the whole were ok (apart from apportioning PCTCT (and I'm usually good at noticing that sort of thing ) I feel I showed competency in the calculations, but not so hot on the theory.

I find some of these exams difficult, given they have 0% to do with my job :glare:

I've never seen nor heard of this hire charge forumula, so I left it as allowable. It's definitely NOT in the osborne books

734RegisteredThat was horible guess i'll be doing it again in Dec

10RegisteredI agree, and i will be back in december for sure! oh wel longer for me to complete my project now! :tongue_smilie:

3RegisteredForgot to deduct indexation allowance on the part disposal but did the calculation correctly.

Didn't notice the 2 tax years but did divide the limits by the 3 for the 2 associate companies.

Ignored the lease car as a revenue expense (Don't recall seeing this in the osborn book either) and said so.

Didn't do anything with Emily's salary as the first item said her adjusted profits were xxxxx. Surely this takes into account her salary as drawings and is already added back? I did say that in my answer.

Not looking forward to PTC on Friday.

Looks like yet another resit. Think I might give audit and cash management a whirl instead of the 2 tax units

:thumbdown:

1Registeredpleasebe brutally honest with me....??I made the following mistakes

- I didnt take off her salary in section 1 before apportioning the profits.
- I STUPIDLY put the submission date for paper returns 31 september!
- I added back all of the lease payments in section 2
- I calculated the gain on the land by pooling it like you do with shares
- And i said the submission

date for the return should have been 9 months and a day and got the penalties wrongi know it doesnt leave much but i found the rest of it fine!! is there any chance in hell of me passing???? :crying:

8Registered