For those wih ptc on friday!

111beckstar111

H GUYS :thumbup1:

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

alicemaylara

Ohhh i want to ask you something just for the hell of it now!

Gemma Culliss

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:

111beckstar111

Go on Alice fire away lol

111beckstar111

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 Culliss

Thats great thanks

alicemaylara

111beckstar111 wrote: »

Go on Alice fire away lol

I proberly will tomorrow when i get stuck revising:thumbup1:

111beckstar111

lol no probs

Gemma Culliss

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

111beckstar111

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 +

DOTTY

hi becksta

111beckstar111 wrote: »

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:

111beckstar111

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

111beckstar111

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:

diamondavid

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

ChrisWV10

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.

111beckstar111

diamondavid wrote: »

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:

DOTTY

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

111beckstar111

aww bless that sounds like a good idea lol
good luck to you too!

Maria24

Starting band rate of 2320 for employment income

111beckstar111 wrote: »

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_d

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

Greycow

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_d

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