As your answers look like this ?

WILL YOU PLEASE TAKE A MINUTE AND DIRECT ME WHERE I WENT WRONG ?

Task 1

Capital allowances 71442

Assessable trading income 126928

Emily’s shares of profit 105196 and Ismail’s 21732

Task 2

Adjusted trading profit after capital allowance 347173

Chargeable gain =150,000-[100,000 X 150,000/ 150,000 +500,000]=23077 X

.571 indexation allowances [13177]= chargeable gain= 113746

Has anyone know the disallowable leasing expenses my 508

PCTCT For period ending 31/12/2008 450824 {P} 456824

Total tax liability payable 127659.30

[2007]=33811.80 less [MR] 266.30=33545.5

[2008]=94673.01 less {MR}559.29=94113.72

Comments

  • Londina
    Londina MAAT, AAT Licensed Accountant Posts: 814
    -I had similar MR figures

    -Ismail only get 6 months of profit share

    check more info in the other post http://forums.aat.org.uk/showthread.php?p=149761#post149761
  • hanapospis
    hanapospis Registered Posts: 111 ? ? ?
    Hi,

    I had

    1.1
    CA - 72,642

    1.2
    Assessable trading income - 125,728

    1.3
    Emily share of profit 99,296
    Ismal share of profit 26,432

    2.1

    Adjusted trading profit after capital allowance - 348,865

    2.2
    gain ......113.746
    less loss..(9345)
    total gain.. 104401

    2.3
    PCTCT 452,516
    Profits 458,516

    2.4
    2007 - 33,938-256 = 33,683
    2008 - 95,028-537 = 94,491

    total tax liability - 128,174

    I had no idea what to do with the leasing instalment of 2,200 .. so I have just addedd back as disallowable expense
  • Londina
    Londina MAAT, AAT Licensed Accountant Posts: 814
    I must got something wrong in the capital allowances because my figure is slightly different!
    Disposa: there was something different than the usual?
    Ismail car: private portion to be applied?
  • hanapospis
    hanapospis Registered Posts: 111 ? ? ?
    I had


    ....................General Pool.......... Emily Car...........Ismal Car.............CA
    WDA..............56995.....................14500................................
    Acquisition
    without FYA
    excess AIA........3675
    Ismal Car.............................................................18370
    Disposal.............(11660)
    ___________________________________________________________
    ......................49010...............14500.....................18370......
    WDA 20%.........(9802)..................................................................9802
    cars
    3000limit...................................(2900x0.6).............(3.000x0.8).......4140
    _________________________________________________________________
    .....................39208................11600.......................15370
    FYA - (8700)...............................................................................8700
    AIA............................................................................................50000

    Total CA.....................................................................................72642


    But I might have gone wrong somewhere... what did you do?
  • Londina
    Londina MAAT, AAT Licensed Accountant Posts: 814
    looks very familiar to me, only problem I think I forgot to put FYA amount into the total allowances column!:crying:
  • lala2009
    lala2009 Registered Posts: 95 ? ? ?
    I did all same except 6/12 for Ismail's car as he joined halfway through the year
  • hanapospis
    hanapospis Registered Posts: 111 ? ? ?
    I thought that for CA does not matter when the item has been purchased or how long have you been in business.... but I might be wrong...
  • lala2009
    lala2009 Registered Posts: 95 ? ? ?
    I am not sure - it was a guess! hopefully they wont penalise me too harshly if it was wrong...........
  • MOHMEDSALIM PATEL
    MOHMEDSALIM PATEL Registered Posts: 184 ? ? ?
    have you not reduced the private usage ?

    As my knowledge concern, there a private usage of car should therefore the proposnate of private use can not claim wda.

    So total emilys 60% can allow wda and same for ismail but ismail came 6 months later which need to consider as well.

    I hope we all right

    thank you
  • hanapospis
    hanapospis Registered Posts: 111 ? ? ?
    I am not so sure we have to take into an account that Ismail joined the company in the middle of an accounting period. It should not matter when he joined and still all 20% WDA allowances should be allowable (after private usage has been taken off).
    In all exercises I’ve done we have always taken into an account a whole accounting period.
    His benefits in kind will be then time apportioned for 6months...

    Or am I wrong?
  • tburchell11
    tburchell11 Registered Posts: 25 ? ? ?
    I think you are correct hanapospis...
    You shouldnt apportion the capital allowances because he started through the year. The capital allowances are for the business before the allocation of trading profits. You are correct by saying a benifity would then be calculated on the private use of a business asset, in this case a car.
  • MOHMEDSALIM PATEL
    MOHMEDSALIM PATEL Registered Posts: 184 ? ? ?
    yes you right

    Hi i do not the person who has replied last one but i must say you are 100% right. No need to time apportion for ismail car but his private usage need to considered.

    I did that bit wrong

    thanks for feedback really appreciated.
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