Anyone up for a revision thread on btc?

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reddwarf
reddwarf Registered Posts: 528 Epic contributor 🐘
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  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
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    reddwarf wrote: »
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    What do we do I have never been involved in one before?
  • reddwarf
    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...
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
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    reddwarf wrote: »
    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...

    If someone starts in business July 2009 how many weeks Class 2 do they pay for 2009/2010?
  • reddwarf
    reddwarf Registered Posts: 528 Epic contributor 🐘
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    36?
  • reddwarf
    reddwarf Registered Posts: 528 Epic contributor 🐘
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    anyone know if this is right?
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
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    Looks like its just you and me reddwarf and we are both unsure! :lol:
  • Primble
    Primble Registered Posts: 734 Epic contributor 🐘
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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 point
  • reader
    reader Registered Posts: 1,037 Beyond epic contributor 🧙‍♂️
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    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?
  • reddwarf
    reddwarf Registered Posts: 528 Epic contributor 🐘
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    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!
  • reddwarf
    reddwarf Registered Posts: 528 Epic contributor 🐘
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    I forgot got say 52 weeks based on your trading profit figure for the tax year...
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
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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 :lol:
  • reddwarf
    reddwarf Registered Posts: 528 Epic contributor 🐘
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    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... :-(
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
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    Is nobody able to help us with this?
  • Ampsie
    Ampsie Registered Posts: 145 Dedicated contributor 🦉
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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!

    Ampsie
  • reddwarf
    reddwarf Registered Posts: 528 Epic contributor 🐘
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    Thanks Ampsie!

    Reader you got it right - your turn to ask a question....
  • reader
    reader Registered Posts: 1,037 Beyond epic contributor 🧙‍♂️
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    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.
  • jojoscottison
    jojoscottison Registered Posts: 21 New contributor 🐸
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    £3000
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
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    reddwarf wrote: »
    Thanks Ampsie!

    Reader you got it right - your turn to ask a question....

    Hay did I not get it right too? :lol:
  • reddwarf
    reddwarf Registered Posts: 528 Epic contributor 🐘
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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?
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
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    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?
  • reddwarf
    reddwarf Registered Posts: 528 Epic contributor 🐘
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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...
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
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    reddwarf wrote: »
    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! :lol:
  • reddwarf
    reddwarf Registered Posts: 528 Epic contributor 🐘
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    It's only 10% business use ... £200,000 x 10% x 10% ???

    I suppose we are getting the bits we arn't clear on!!!
  • reader
    reader Registered Posts: 1,037 Beyond epic contributor 🧙‍♂️
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    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.
  • reddwarf
    reddwarf Registered Posts: 528 Epic contributor 🐘
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    opps thanks

    your turn Jewels!
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
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    Explain a Terminal Loss? (without looking at your books) :laugh:
  • reddwarf
    reddwarf Registered Posts: 528 Epic contributor 🐘
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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.
  • Primble
    Primble Registered Posts: 734 Epic contributor 🐘
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    jewels.p wrote: »
    Explain a Terminal Loss? (without looking at your books) :laugh:

    my brain
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
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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!
  • reddwarf
    reddwarf Registered Posts: 528 Epic contributor 🐘
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    Okay so do we reckon it's rightish?
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