help me in BTC ???

snowrosee84
snowrosee84 Registered Posts: 8 Regular contributor ⭐ ? ⭐
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??

Comments

  • NickyW
    NickyW Registered Posts: 97 ? ? ?
    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
    snowrosee84 Registered Posts: 8 Regular contributor ⭐ ? ⭐
    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
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