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For those wih ptc on friday!

111beckstar111111beckstar111 Well-KnownRegistered Posts: 158
H GUYS :thumbup1:

PLEASE POST ANY QUERIES YOU HAVE REAGARDING PERSONAL TAX ONLY AND I WILL TRY MY BEST TO ANSWER THEM.

Comments

  • alicemaylaraalicemaylara Trusted Regular Registered Posts: 259
    Ohhh i want to ask you something just for the hell of it now!
  • Gemma CullissGemma Culliss New Member Registered Posts: 12
    Pcr

    Hi,

    i took the exam Dec 07 just wondered, if any thing had changed for this year.

    Is there a 10% tax band, on Net Income Tax Payable?

    Is there indexation on capital gains for individuals?

    Is there Taper Relief on capital gains?

    Entrepreneur 10%

    Single capital gains rate 18%.

    Sorry my teacher gave me a few ideas, but was never very good at teaching. (He told us not too revise standards for DFS):thumbdown:
  • 111beckstar111111beckstar111 Well-Known Registered Posts: 158
    Go on Alice fire away lol
  • 111beckstar111111beckstar111 Well-Known Registered Posts: 158
    Hi Gemma

    No indexation on capital gains what so ever or taper relief.

    Capital gains tax rate is 18% your right :)

    Entrepenaurs relief is your gain x 4/9

    No 10% tax band on general income
    10% rate for £2,320 of savings income

    Hope that helps
  • Gemma CullissGemma Culliss New Member Registered Posts: 12
    Thats great thanks
  • alicemaylaraalicemaylara Trusted Regular Registered Posts: 259
    Go on Alice fire away lol

    I proberly will tomorrow when i get stuck revising:thumbup1:
  • 111beckstar111111beckstar111 Well-Known Registered Posts: 158
    lol ;) no probs
  • Gemma CullissGemma Culliss New Member Registered Posts: 12
    Net Income Tax Payable

    Please can you tell me what the table is now the above;

    G S D
    22% 10% 10% £?
    22% 20% 10% £2,320
    40% 40% 32.5% £0.00

    Thanks
  • 111beckstar111111beckstar111 Well-Known Registered Posts: 158
    General Income N/A 20% 40%

    Savings income 10% 20% 40%

    Dividend Income 10% 10% 32.5%

    Tax Bands

    Starting rates to 2320 (savings and dividends only)
    basic rate to 34,800
    higher rate 34,800 +
  • DOTTYDOTTY Settling In Nicely Registered Posts: 22
    hi becksta
    H GUYS :thumbup1:

    PLEASE POST ANY QUERIES YOU HAVE REAGARDING PERSONAL TAX ONLY AND I WILL TRY MY BEST TO ANSWER THEM.

    please can you advise.......................

    chattel, were an exempt chattel has sold for less than 6000 and made a loss, the loss is restricted asuming the chattel was sold for 6000, but it cannot turn the loss into a gain, now if this were the case is this rule than ignored?

    ppr, can't really get me head round this, there is something about the periods of absence but follow actual occupation, so you are just counting the months inbetween that are unoccupied? and always the last 36 months are exempt no matter what?

    I have taken th day of work to study so as i go thought things i will prob come up with more questions if that is ok.

    I have to be ok tomorow as MAC and PTC are my last two exams to pass and i had a horrible time with MAc on Monday and don't hold much hope out for that one.............. so fingers crossed i can get throught this one.

    Thanking you in advance for any help!!!!!!!!!
    Dotty
    :001_smile:
  • 111beckstar111111beckstar111 Well-Known Registered Posts: 158
    To dotty

    Hi Dotty :001_smile:
    First of all I'll explain chattels then on another post I'll try and explain PPR to the best of my ability :001_smile:

    CHATTELS

    EXEMPT CHATTELS - CARS, WASTING CHATTELS AND CHATTELS BOUGHT AND SOLD FOR £6,000 OR LESS

    CHATTELS SOLD for £6,000+ (and they result in a gain)
    RESTRICTED TO 5/3(PROCEEDS - £6,000)

    YOU TAKE THE ANSWER WHICH IS SMALLEST AS IT WORKS IN YOUR FAVOUR - YOU PAY LESS CAPITAL GAINS TAX :thumbup:

    IF THE CHATTEL IS SOLD FOR LESS THAN £6,000 (and results in a loss)
    and IF IT WAS BOUGHT FOR UNDER £6,000 THIS WOULD BE EXEMPT

    IF THE CHATTEL IS SOLD FOR LESS THAN £6,000 (and results in a loss)
    and IF It WAS BOUGHT FOR MORE THAN £6,000 - THAN TREAT AS IF YOU HAVE SOLD THE CHATTEL FOR £6,000 (deemed proceeds)

    Hope that helps

    Becky
  • 111beckstar111111beckstar111 Well-Known Registered Posts: 158
    Dotty - PPR PRINCIPLE PRIVATE RESIDENCES

    PPR - PRINCIPLE PRIVATE RESIDENCES

    FIRSTLY YOUR PPR IS EXEMPT FROM CAPITAL GAINS TAX AND YOU CAN ONLY HAVE 1! IT IS YOUR MAIN RESIDENCE...

    THE LAST 3 YEARS OF OWNERSHIP ARE ALWAYS REGARDED AS PART OF THE PPR OCUPATION PERIOD

    ADDITIONAL PERIODS OF DEEMED OCCUPATION:
    - 3 YEARS FOR ANY REASON
    - 4 YEARS FOR UK EMPLOYMENT
    - ANY PERIOD WHEN LIVING ABROAD DUE TO EMPLOYMENT

    THESE THREE PERIODS OF ABSENCE ONLY COUNT AS BEING OCCUPIED AS A PPR IF -
    THE PROPERTY WAS OCCUPIED AS A PPR SOME TIME BEFORE AND AFTER ANY OF THE THREE PERIODS OF ABSENCE AND..
    NO OTHER PROPERTY IS BEING TREAED AS PPR DURING THE PERIOD OF ABSENCE


    Ill follow with an example from the osborne book shortly...:thumbup:
  • diamondaviddiamondavid Feels At Home Registered Posts: 33
    car+fuel benefit? when an employee paid toward the car/fuel benefit, in what circumstance do you take it off the accessable benefit?

    pension? is this right, %=less salary. £200 net per month(you multipes 12 months, gross it up100/80, and then add it into the basic rate£34800)

    Interest, which 1 is exempt, ie GILT, ISA etc ?

    sorry if i didnt explain it properly :)
  • ChrisWV10ChrisWV10 Just Joined Registered Posts: 3
    The fuel benefit is chargeable unless the employee pays all private fuel themselves or reimburses the employer for all private fuel. Only paying a part contribution is not sufficient.

    Employee can make a contribution towards the purchase cost of the car which is deducted from it's value. So paying £5000 towards an £18000 car makes it's value £13000*x% based on it's co2 emissions

    Interest on ISAs is tax free and excluded from calculations. (as is PEPs, lottery wins, premium bonds)

    Interest on Gilts is paid gross (so no need to gross up) but it is still taxable.
  • 111beckstar111111beckstar111 Well-Known Registered Posts: 158
    car+fuel benefit? when an employee paid toward the car/fuel benefit, in what circumstance do you take it off the accessable benefit?

    pension? is this right, %=less salary. £200 net per month(you multipes 12 months, gross it up100/80, and then add it into the basic rate£34800)

    Interest, which 1 is exempt, ie GILT, ISA etc ?

    sorry if i didnt explain it properly :)


    Only contributions made towards the capital cost ......take off any contbution made for car cost off list price and any conribuion towards benefit of car for assessable benefit.

    Only take conribution of fuel if all is paid for, if only some is paid for you ignore it.

    the first part is correct this is an occupaion pension
    the 2nd part is also correct but ths is for a personal pension

    ISA, TESA, PEP'S, PREMIUM BOND PRISES ALL EXEMPT

    GILS ARE TAXABLE BUT RECEIVED IN GROSS

    HOPE THAT HELPS:thumbup:
  • DOTTYDOTTY Settling In Nicely Registered Posts: 22
    Thank you very much,

    My head is a little less confused............. i have studied all day, fallen asleep twice!!!!! i think it has been system overload i am kikcing myself a little as i think in my revision i concentrated too much on MAC, however i feel better now than i did earlier. I have just ordred a chinese, going to have that then get an early night.
    good luck to erveyone for tomorrow
    Dotty
  • 111beckstar111111beckstar111 Well-Known Registered Posts: 158
    aww bless that sounds like a good idea lol :)
    good luck to you too!
  • Maria24Maria24 New Member Registered Posts: 7
    Starting band rate of 2320 for employment income
    H GUYS :thumbup1:

    PLEASE POST ANY QUERIES YOU HAVE REAGARDING PERSONAL TAX ONLY AND I WILL TRY MY BEST TO ANSWER THEM.

    Hi- HELP not sure what to do , I am revising now for my PTC unit 19 which is tomorrow and
    I am really confused because I know the goverment introduced back the 10% starting rate band for employment income 2008/09 of 2320 . I bought the
    PTC book from Kaplan to revise and all the exercises have not got the starting rate of 10% for employment income.
    Also, I attended a AAT course revision on 31st of May and I have noticed now that the working given to my by the teacher does not have the starting rate band for employment income.
    2320 at 10%
    2321 - 34800= 20%
    24801 - over at 40%
  • sarah_dsarah_d New Member Registered Posts: 10
    the 10% tax rate was revoked - that's why my other half got a £60 tax rebate! so, no don't use the 10% rate anymore......tax table is given in exam, so don't worry about it too much just follow the rates ans bands given
  • GreycowGreycow Feels At Home Registered Posts: 83
    I dont think it applies to the exams, everything i have looked at, both BPP and Kaplan only have the special arrangement of 10% for savings and the basic rate of 20% and higher of 40%

    As they give you the percentages and bandings in the paper I would go with what they give.
  • sarah_dsarah_d New Member Registered Posts: 10
    oh, but jsut to mention that the 10% is still applicable for savings income, however you tax 'other income' (employment income) first, then when you move on to tax savings, you start where you left off i.e if you taxed all of the 'other income' at 20% and it was more than £2320 then carry on taxing savings at 20% if this doesn't take you over £34800 taxed so far, then tax dividends at 10%

    Or

    if you have taxed the full £34800 at 20% then some more other income at 40% then tax savings at 40% and dividends at 32.5%

    This helps me....
    Other income Savings Dividends
    savings up to £2320 10%
    up to £34800 20% 20% 10%
    over £34800 40% 40% 32.5%

    Always tax other income first, then just follow the row you are taxing on
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