help me in BTC ???

snowrosee84

i try to resolve btc exam jun 2010

in task 1.3
Calculate the assessable profits for Olivia for the tax years 2009/10 and 2010/11. Clearly show all relevant dates, and show the amount of overlap profits.


i need to know how we answer it like this
they answer it as:

£
2009/10
1 May 2009 to 5 April 2010
Nine months to 31 January 2010 33,570
2 months from year ended 31 January 2011 = 2/12 x £87,000 14,500
______
48,070

2010/11
Year ended 31 January 2011 87,000

Overlap
2 months from year ended 31 January 2011 = 2/12 x £87,000 14,500




i really Confused on 2009\2010 how they solve it
plz help??

NickyW

For the first year of trading the assessable profits will always be from the date of trading to 6th April.
Therefore in this case for 09/10 you have to calculate the profits from 1 May 09 - 6 April 10.
The profits from 1 May 09 - 31 January 10 are 33570.
You then have to calculate the profits from 1 Feb 10 to 31st March 10.
The profits for the y/e 31 Jan 11 are 87000 - therefore 2 months will be 2/12 x 87000 = 14500.
33570 + 14500 = 48070.

I find this topic difficult but this article really helped me!

http://www.tolleytraining.co.uk/miscellaneous/demos/BT%20demo%20-%20Manual%20Ch%205.PDF

snowrosee84

the profits from 1 May 09 - 6 April 10 >>> it's for 11 months

why we do not calculate : 33750*11\12=30937.5

how you choose this period "The profits from 1 May 09 - 31 January 10 are 33570"??

any stander ruls for the period??


thanks alot for ur replay