Anyone up for a revision thread on btc?
Comments
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What are the maximum (%) penalities for errors in returns?0
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Oh dear this thread is floundering - is it just too boring?0
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Maybe noone knows the answers! :laugh:0
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can we use google?0
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Basis periods
Rob is a sole trader who commenced trading on 30th September 2005 he produces his first accounts to December 2006. Thereafter he keeps the year end as the 31st December.
His profits for the first few years are as follows:
P/E 31/12/06 48,000
Y/E 31/12/07 25,000
Y/E 31/12/08 33,000
Show his trading income assessment for all the relevent tax years. Show the amount of overlap and the period it relates to.0 -
here goes
£115600
overlap 1.1.06 - 5.4.06 = £96000 -
and the rest!
5/6 1.1.05 - 5.4.06 19200
6/7 1.1.06 - 31.12.06 38400
7/8 1.1.06 - 31.12.07 25000
8/9 1.1.07 - 31.12.08 330000 -
Reader Ltd gets a carpet fitted for £2,000
How should Reader Ltd treat this expense?
In your answer please refer to the following:
i) Should the carpet be capitalized or written off in the P&L
ii) Is the carpet an allowable deduction / qualify as plant & machinery0 -
Reader Ltd gets a carpet fitted for £2,000
How should Reader Ltd treat this expense?
In your answer please refer to the following:
i) Should the carpet be capitalized or written off in the P&L
ii) Is the carpet an allowable deduction / qualify as plant & machinery
Mmmm tricky. I would say it was a Capital Expense as it is improving the building. Therefore capitalised. Classified as Improvement Expenditure am I right?0 -
To be honest I have absolutely no idea what the right answer is. This was a problem I came across at work.
I was advised by colleagues to write off the carpet expense to repairs and maintenance in the P&L. This was because people agreed it wasn't an improvement, i.e. the carpet wasn't enhancing the office, it was simply restoring/repairing the office to its original condition.
My manager has not yet checked the job but I decided the carpet expense should be allowable because this expense was incurred due to wear and tear, and the office is used wholly and exclusively for business.
Because I got the question right(?); I'll ask the next question; does improvement to property qualify as plant & machinery and for capital allowance(s)?0 -
It think the answer is 'depends' ! If you've got a good tax accountant then yes!
Anyway I am going to say yes it does.
Was the tax periods question right does anyone know?0 -
To be honest I have absolutely no idea what the right answer is. This was a problem I came across at work.
I was advised by colleagues to write off the carpet expense to repairs and maintenance in the P&L. This was because people agreed it wasn't an improvement, i.e. the carpet wasn't enhancing the office, it was simply restoring/repairing the office to its original condition.
My manager has not yet checked the job but I decided the carpet expense should be allowable because this expense was incurred due to wear and tear, and the office is used wholly and exclusively for business.
Because I got the question right(?); I'll ask the next question; does improvement to property qualify as plant & machinery and for capital allowance(s)?
Think there was something like this in the June PTC Exam for Property Rental. I did think it might be wear and tear therefore allowable but decided to go for the capital expense. It is one of those unsure ones isnt it?
Now this is gonna bug me. :laugh:0 -
Been reading all of this thread. It is so funny as we are unsure of everything!
I am gonna get a T-Shirt that says "I HATE TAX" not one of the ones that says I love it!0 -
I think the problem is the interretation of the rules is what it's all about and it ain't black and white that's why tax experts get paid so much! Doesn't help us much though!
What about this
http://www.bankingtaxfinance.com/Portals/Davislangdon/Media/PDF/Property%20Owner%20-%20Refurb.pdf0 -
I knew it was too boring! Has everyone got their noses in their books?0
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I am back to MAC today so not playing BTC but will be back soon!0
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Okilly Dokilly Jewels - Mac sins over BTC for entertainment value today!0
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Does nobody want to be reddwarf's playmate till I come back?0
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Thanks Jewels, how sad, a Billy no BTC mates!0
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How about I be your Billy be back soon Mate! :laugh:
Bloody MAC is stressing me out now Aaaaaagh0 -
How kind Jewels, don't rush to leave your MAC friends though, coz I'll be scarce this pm and tomorrow....
back to topic
What is an industrial building?0 -
Answer ... (So now I am playing with myself, very scarey!!).
You don't have to know what an industrial buidling is because although it is in the guidance notes there used to be allowances that are being phased out so it's not examinable!!0 -
An industrial building is basically a factory and you could claim Industrial Building Relief on it similar to a capital allowance. However this is being phased out so should not be examined again.0
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It's £300 because you can only claim 10% of the allowance because 90% personal use0
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Hi Zakira,
This thread has got a bit threadbare! Which question are you answering?0 -
Its official......................reddwarf has gone completely mad and is running the thread alone! 0
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Okay Jewels, here we go again...
What is the opening year rule if an accounting period is 1.3.09 - 31.8.10?0 -
Hey I never said I was back on BTC yet!!!!! Stop forcing me to be your buddy!
I will be back next week MAC is still on my agenda this week (if I can give myself a kick up the butt)0
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