Anyone up for a revision thread on btc?
reddwarf
Registered Posts: 528 Epic contributor 🐘
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Someone starts by asking a question, the person who gets the answer right (may be some discussion in between!) asks the next question and so on...
You can start...0 -
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36?0
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anyone know if this is right?0
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Looks like its just you and me reddwarf and we are both unsure!
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thats coz everyone else was at work. lol.
36 makes sns assuming it was the beggining of July but BTC realy isn't my strong point0 -
01 July 09 - 05 Apr 10?
31 + 31 + 30 + 31 + 30 + 31 + 31 + 28 + 31 + 5 = 279 days
279 days / 7 = 39.8 weeks = 40 weeks?0 -
My osborne book says class 2 is a 'flat rate' does that mean you pay 52 weeks regardless of when in the tax year you start your business?? There are no computations (I like that word!) showing partial years in the osborne book....
Help!
This was a good question Jewels!!
Now we need a thread on NICs!0 -
I forgot got say 52 weeks based on your trading profit figure for the tax year...0
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I cant find where it was that I got it wrong but I am sure (well not 100%) the correct answer is if the business started on 1/7 it will be the number of weeks till the end of that tax year i.e 5/4 the following year. I calculated it as 1/7 - 31/1 the following year as that was their year end.
This thread is now no longer on BTC it is officially on N.I 0 -
the only question in Osborne on this states the guy's profits for year 2009/10 and he pays the full 52 weeks.
Seems a bit tough, if you go self employed on 4/4 you'd have to pay 52 weeks NI, surely it is pro rata but how?!
I looked on the HMRC site but could find nothing about start up date... :-(0 -
Is nobody able to help us with this?0
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Class 2 nat insurance is a flat rate of £2.40 per week.
HMRC will bill you from when you register with them as self employed.
They bill each month and expect you to keep up to date with it. So this isn't one that you would have to calculate at the end of the year in a real life situation. (my other half is self employed and they send an invoice each month).
If asked in an exam question then it is £2.40 for each week that you have been self employed in that tax year.
eg if you became self employed on 1st May then the following year you would have paid £115.20 in class 2 nat ins (1st May - April following year = 48 weeks x £2.40 )
We had that question in the June 2010 exam!
Don't forget that the national ins will apply to the tax year NOT the business year.
The class 4 contributions are different as they depend on the profit made for that year.
I hope that helps a bit!
Ampsie0 -
Thanks Ampsie!
Reader you got it right - your turn to ask a question....0 -
Excellent!
The managing director of Reader Ltd has been given a Ferrari. 90% of the time the Ferrari is used for personal reasons. The tax written down balance b/f for this Ferrari is £200,000. Calculate the capital allowances that can be claimed.0 -
£30000
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Oh Gawd, yep Jewels sorry!
How about you and Jojo (I think £3000 is right being max allowance for expensive cars?), both ask and question?0 -
I think that is only for cars bought before 1/4/09 isnt it 10% if it is bought after that?
When was the Ferrari bought?0 -
So its the emissions that dictate WDA if after 1.4.2009 (i.e. 10% for over 160 g/km) and cost before 1.4.2009 and that is 20% but limited to £3000 so the answer is £2000? I always get muddled on this...0
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So its the emissions that dictate WDA if after 1.4.2009 (i.e. 10% for over 160 g/km) and cost before 1.4.2009 and that is 20% but limited to £3000 so the answer is £2000? I always get muddled on this...
Not sure where you got £2000 I would say it is limited to £3000 if it was bought before 1/4/09 and £20,000 if after 1/4/09!
Gawd we are not getting on very well are we! 0 -
It's only 10% business use ... £200,000 x 10% x 10% ???
I suppose we are getting the bits we arn't clear on!!!0 -
I think Jewels is correct.
WDA is limited to £3,000 prior to 01/04/2009 due to the expensive car limit.
And the WDA is £20,000 (10% of £200,000) post 01/04/2009 due to the 160g of CO2/Km rule
The main point is that you don't reduce the WDA by 90% because the managing director is an employee. Instead of reducing the WDA, the company would be taxed under the P11D system.0 -
opps thanks
your turn Jewels!0 -
Explain a Terminal Loss? (without looking at your books) :laugh:0
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Loss made in the last 12 months of a closing business, sole trader (and partnerships?) can be set off against profits in the past 3 years, latest first.0
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I would have no idea if I get asked that question I just asked! So much bloomin rules and this and that for Tax it does my head in!0
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Okay so do we reckon it's rightish?0
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