BTC - how did you find it...
Comments
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Oh and the picture was just Proceeds Less Cost Less Indexation on cost = Gain
what do you think?0 -
Non Wasting Chattel & Goodwill
Hi,
I calculated gain considering that its a NWC, then deducted indexation.
Goodwill Gain was eligible for enterpreneur relief.
Might be wrong.
Thanks0 -
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The only overlap I deducted was the amount given; I think when business ceases there are no overlap periods, are there? It's only when a new bus.is started.0
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I got enterpreneur relief on the goodwill too0
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LittleChinaDoll wrote: »Hi,
When calculating NI Class 4 did you adjust upper and lower limits to 9 months period.
As 40040 and 5345 relate to 12 month period.
Thanks
No need to - they're not for a 12 month period so much as a tax year.
The final 'year' covered was the year ending in april 2008 plus the 9 months ending in January 2009 - the total profits for those two periods less the overlap relief were what the NI is based on. Total profits taxable for 08/09 tax year £70,000.
I wasn't quite sure where the year ended april 08 stuff was meant to go on the tax return. I made the assumption they'd already done the return for that period separately at some point between year end and the business ceasing trading. could be wrong but that seemed most sensible!!!!
Re NI class 2 - I think the charge is still for the full 12 months regardless of when the business ceased trading. I've been caught out on that before on a test/mock when I time apportioned. Again I think it's cos of the tax years vs the actual trading period being assessed.0 -
i got 4000 x 4/9 1116 less 12000 for the gain0
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as for the goodwill , entrepreneur relif was the only relief or was annual exemption (9600) also meant to be deducted?
i dont even know what the pass mark % is on AAT exams lol.. but id be very
to fail this
also on the BA / BC these figures dont get apportioned to 9month do they ? im sure ive been caught out on this before0 -
as for the goodwill , entrepreneur relif was the only relief or was annual exemption (9600) also meant to be deducted?
i dont even know what the pass mark % is on AAT exams lol.. but id be very to fail this
I deducted annual exemption as was a sole trader, not sure if this is right?0 -
carrieclarke2001 wrote: »i got 4000 x 4/9 1116 less 12000 for the gain
I don't think you do E.Relief on a picture..... as E.Relief is only available if selling the whole business, this E.Relief should have gone on the Goodwill question.0 -
They didn't specify to deduct the annual exemption but I did just in case! I did entrepeneur relief too.0
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Crazysarah86 wrote: »I deducted annual exemption as was a sole trader, not sure if this is right?
Yeah you're correct!!0 -
They didn't specify to deduct the annual exemption but I did just in case! I did entrepeneur relief too.
On the goodwill question that is. On the picture on I did the normal calcs then the check with the 5/3 x sale proceeds - 12,000 thing which was higher so stuck with the normal indexed gain. Was £6*** ish0 -
Now I'm gutted, I was thought IF business ceased trading No WDA,AIA I just deduct the market value then balancing figure.0
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Now I'm gutted, I was thought IF business ceased trading No WDA,AIA I just deduct the market value then balancing figure.
If they cease trading there's no AIA or WDA, just disposals in the year then balancing allowances or charges to bring the TWDV's to nil. Sounds like you thought right....0 -
Entrep.relief was on goodwill, not on the picture! I found personal allowance only in Personal Tax study texts, so I neglected it ;-(((0
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Sorry mixed up personal allowance and annual exemption. Head is boiling0
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Just remembered what I did on the self assessment form to get out of the fact that I didn't have info from the year ended 30th April 08 as well as the 9 month period - on the front where it said when does the period start i put 1st may 08 rather than 07. i hope that's right!!!0
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Thanks god someone thought similar to my working? I felt better now I have to go to do my DFS! Good luck guys who take DFS tomorrow.0
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Worried now...
Who agrees with any of this:
Task 1.1) Capital allowances - no allowances except 2 balancing allowances and one balancing charge (one of these had to be proportioned for the business use but I can't remember which one)
Task 1.2) Adjustment of profits - seemed fairly straightforward, ended up with trading profit of around £48,316?
Task 1.3) For tax year 2008/09 I added the profit from y/e 30 April 2008, to the profit from the period ending 31 Jan 09, then deducted overlap profits given in the question. To give a nice round figure of £70,000?
Task 1.4) National Insurance - Guessed this!!! I thought that if this was being calculated for the profits of the tax year 2008/09 this would be 52 weeks, so just did the £2.30 x 52, then (£70,000 - £40040) x 1% and (£40040 - £5435) x 8%???
Task 1.5) Chargeable gain - this one confused me as well. Just did the goodwill gain of £400,000 (or whatever it was) less Entrepeneurs relief, but then got carried away and took off the annual exemption as well?
Task 1.6) The tax return - wasn't sure again but just put the accounting period start date as 1 May 2008 and end date as 31 Jan 2009, as I figured although they'd given us the profit figure for the previous accounting period we had no idea what that was made up of, so couldn't possibly include it in the form? Doesn't page 4 of the return (that we wasn't given) ask for all the other information?
Task 2.1) Capital allowances - think this was ok. Private use on the directors car was irrelevant information just to try and confuse us! Had a general pool then 3 separate car pools?
Task 2.2) Was this the chattel task? Have a horrible feeling I did this wrong... Can anyone remember the figures for this one???
I know at the end I said the gain was restricted to 5/3 (proceeds - £6000) but this worked out to £10,000 and the gain I'd calculated was already less than this?
Task 2.3) PCTCT - was this just adjusted trading profits (given) less capital allowances (calculated in task 2.1) plus gain calculated in task 2.2???
Task 2.4) Corporation Tax - seemed too easy to be true? This was a straightforward " x 28% " calcuation right???
Then saying how you could pay it by 4 instalments of 25% each, first payment 14th Oct, then 14th Jan, then 14th Apr, then 14th July???
Task 2.5) The Losses - (a) just said 3 reliefs available, current year, carry back and carry forward
(b) Described a bit about each of the reliefs, was hard as they said not to calculate figures so didn't give examples
(c) Capital loss, just said it could only be carried forward and used against chargeable gains, not any other income???
Anyone agree or disagree with the above... please tell me...0 -
I feel like such an idiot. I stared at the first question for ages before realising it doesnt get any WDA!! Even if its wrong atleast ill get error carried forward for 1.2! Then I stupidly added the overlap profits onto my trading profits and realised the moment I came out when it was too late! But again.. atleast ill get error carried forward for the NI. I didn't understand the net chargeable gains question.. i just took off entreprenuers relief and annual exemption. Struggled a bit with the tax return but think i managed to fill everything in! Don't think I passed section 1 though.. section 2 was ok.0
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The more i look at this the more confused I'm getting. I didnt include any of the previous years profits on any of it!! EEk!! think im wrong there cos now i thining of it i should have included one month but in the exam i kept thinking well they've been trading for many years now so just do the accounting period!
I ignored the private usage in section 2 as it was a company. hopefully i will get c/f marks if ne of it is wrong
the sale of the pic i just did as proceeds - cost! didnt even think about Chattels at all!!
For the sale of bis in section 1 i did E. Relief and the personal allowance as was a sole trader!0 -
Lynn Saunders wrote: »Worried now...
Who agrees with any of this:
Task 1.1) Capital allowances - no allowances except 2 balancing allowances and one balancing charge (one of these had to be proportioned for the business use but I can't remember which one)
Task 1.2) Adjustment of profits - seemed fairly straightforward, ended up with trading profit of around £48,316?
Task 1.3) For tax year 2008/09 I added the profit from y/e 30 April 2008, to the profit from the period ending 31 Jan 09, then deducted overlap profits given in the question. To give a nice round figure of £70,000?
Task 1.4) National Insurance - Guessed this!!! I thought that if this was being calculated for the profits of the tax year 2008/09 this would be 52 weeks, so just did the £2.30 x 52, then (£70,000 - £40040) x 1% and (£40040 - £5435) x 8%???
Task 1.5) Chargeable gain - this one confused me as well. Just did the goodwill gain of £400,000 (or whatever it was) less Entrepeneurs relief, but then got carried away and took off the annual exemption as well?
Task 1.6) The tax return - wasn't sure again but just put the accounting period start date as 1 May 2008 and end date as 31 Jan 2009, as I figured although they'd given us the profit figure for the previous accounting period we had no idea what that was made up of, so couldn't possibly include it in the form? Doesn't page 4 of the return (that we wasn't given) ask for all the other information?
Task 2.1) Capital allowances - think this was ok. Private use on the directors car was irrelevant information just to try and confuse us! Had a general pool then 3 separate car pools?
Task 2.2) Was this the chattel task? Have a horrible feeling I did this wrong... Can anyone remember the figures for this one???
I know at the end I said the gain was restricted to 5/3 (proceeds - £6000) but this worked out to £10,000 and the gain I'd calculated was already less than this?
Task 2.3) PCTCT - was this just adjusted trading profits (given) less capital allowances (calculated in task 2.1) plus gain calculated in task 2.2???
Task 2.4) Corporation Tax - seemed too easy to be true? This was a straightforward " x 28% " calcuation right???
Then saying how you could pay it by 4 instalments of 25% each, first payment 14th Oct, then 14th Jan, then 14th Apr, then 14th July???
Task 2.5) The Losses - (a) just said 3 reliefs available, current year, carry back and carry forward
(b) Described a bit about each of the reliefs, was hard as they said not to calculate figures so didn't give examples
(c) Capital loss, just said it could only be carried forward and used against chargeable gains, not any other income???
Anyone agree or disagree with the above... please tell me...
LYNN
I AGREE!!! I think we have identical answers!!!! Hurrah!!!!0 -
I had all this £70k but then the question read (information from previous tax years) and listed the years results so then I removed the £30k!! I read "from previous tax years" to mean they had already been assessed - I know it's probably wrong but that wasn't a very good wording!0
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civicmeister wrote: »I had all this £70k but then the question read (information from previous tax years) and listed the years results so then I removed the £30k!! I read "from previous tax years" to mean they had already been assessed - I know it's probably wrong but that wasn't a very good wording!
I wouldn't worry too much or put too much weight on that one question. It looks like people have done a real mixture so they'll probably take that into account in the marking. Anyway, it is only one question out of lots!0 -
How do they mark the paper? Is it 80% of each task or 80% of the whole of section 1?0
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I don't think there is a set pass mark. They decide it once they've marked all the papers depending on how difficult the exam was or something to that effect....0
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ok im now going eeeek
1.1 i got 1 negative and 2 positive 8k something think - now allowance - i didnt apportion the private use bit as wasnt sure if you needed to on cessation so just put the full market value down and worked out difference. think i got my words round wrong way for charge and allowance! oopes
1.2 net profits add disallowables less allowance from above. think i also got 48 something for profits
1.3 i sat for ages think omg i need a personal allowance and then sort of realised. i just used figure from 1.2 - overlap profits and got answer 40,515 i think
1.4 did full ni calculation on 1.3 so had little bit at 1% for class 4s
1.5 did goodwill gain of 400,000 less ER at 4/9 then i took off allowance
due date 31 jan 2010 i think was year i put for due date and said no payment on account for cgt
1.6 i hate these things was all a bit go with what the boxes said - i put my dates as 1/5/08 to 31/1/09 though
the previous trading profits confused me as i did see it when it said find for 08/09 as saw that the year ended 30/4/08 was included in the years 08/09 but only the period from 6/4/08 to 30/4/08 which wasnt a full month so you only apportion for full months so i said that and left it out
2.1 no private use - had general pool then i think 3 car pools - fya on energy saving plant, full 50k aia, disposal and i think some sort of charge or allowance on bmw just cant remember which. wda 20% on pool and then wda on 2 other cars - one was lower than 3000 one was higher so 3000
2.2 i got 6??? something for gain i did proceeds loss cost then indexed cost then deducted this to give gain which gave me the above figure and then worked out 5/3 x (12000-6000) = 10000 so i said as gain lower than the 10000 the gain would be the 6??? figure i got for gain
2.3 think i did profit figure given less allowances plus gains also to give pctct - was a high number if i remember rightly 1.8million or something?
2.4 i also did full rate at 2.3 x 28%
dates i said months 7 and 10 of current year and months 1 and 4 of following year and said 14th day and put the 4 months and years
i said calculated based on current years liability, estimates needed to be accurate as can incur interest and said need to be reviewed quarterly
2.5 i worded it and talked about S393 (1) future trading profits and S393 A full income blabbed a bit about those and then said about chargeable losses being able to be relieved against other gains in current year or c/f to future years to be relieved against gains - can never be relieved against profits
how much does it effect your marks if you do something wrong in a questions say 1.3 but use it for other questions as obviously with this one error will be carried the whole the way through a section??0 -
As it was a company, I did not to the 5/3 chattel rule for the painting.I thought this might be just for individuals?0
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