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  • LondinaLondina Experienced Mentor Posts: 814MAAT, AAT Licensed Accountant
    x-lauren-x wrote: »
    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!
  • x-lauren-xx-lauren-x Settling In Nicely Posts: 22Registered
    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!
  • JointyJointy Feels At Home Posts: 78Registered
    lease charge

    I 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.
  • hanapospishanapospis Well-Known Posts: 111Registered
    Jointy wrote: »
    I 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.

    I have never heard of this... it is not in Osborne book, not only a mention of it.
  • tburchell11tburchell11 Feels At Home Posts: 25Registered
    Hey,

    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!!
  • hanapospishanapospis Well-Known Posts: 111Registered
    Hey,

    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..
  • RichardRichard Trusted Regular Posts: 373Registered
    Hey,

    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.
  • tburchell11tburchell11 Feels At Home Posts: 25Registered
    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?
  • hanapospishanapospis Well-Known Posts: 111Registered
    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?
  • tburchell11tburchell11 Feels At Home Posts: 25Registered
    I am with BPP, Are you confident about passing?

    Do you know how easy going they are with pass rates/errors
  • hanapospishanapospis Well-Known Posts: 111Registered
    I was quite fine when I left the exam.. but now I am not so sure. And we have to wait two months...
  • hanapospishanapospis Well-Known Posts: 111Registered
    I am with BPP, Are you confident about passing?

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

    look at my answers here:
    http://forums.aat.org.uk/showthread.php?t=22818
  • RichardRichard Trusted Regular Posts: 373Registered
    hanapospis wrote: »

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

    Good luck.
  • lala2009lala2009 Feels At Home Posts: 95Registered
    Richard wrote: »
    I hope your answers are right, they seem pretty similar to mine!!

    Good luck.

    And mine!! We will be fine:thumbup1:
  • DuncyMoonDuncyMoon New Member Posts: 7Registered
    There seem to be a few queries about the lease car formula. I've been studying the Kaplan textbook & it's on page 19.

    The formula is:

    ½ x (Retail price when new - £12000) x Hire charge
    Retail 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:
  • jh999jh999 Settling In Nicely Posts: 17Registered
    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 :/
  • PrimblePrimble Experienced Mentor Posts: 734Registered
    I hate it i hate it i hate it!!!!!!!!!
    That was horible guess i'll be doing it again in Dec
  • Amy1234Amy1234 New Member Posts: 10Registered
    Primble wrote: »
    I hate it i hate it i hate it!!!!!!!!!
    That was horible guess i'll be doing it again in Dec

    I agree, and i will be back in december for sure! oh wel longer for me to complete my project now! :tongue_smilie:
  • ChrisWV10ChrisWV10 Just Joined Posts: 3Registered
    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

    :thumbdown:
  • jessie_888jessie_888 Just Joined Posts: 1Registered
    can someone please be 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 wrong

    i know it doesnt leave much but i found the rest of it fine!! is there any chance in hell of me passing???? :crying:
  • sleepymesleepyme New Member Posts: 8Registered
    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
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