Business Tax Cba 1

agg25agg25 Settling In NicelyPosts: 20Registered
Can anyone help me on the 1st business tax practice cba on the aat website i cant on seem to figure out where the answers come from on question 1.3

Thanks in advance
Adam

Comments

  • TerdooTerdoo Well-Known Posts: 144Registered
    Re:Business Tax

    Hi
    Task 1.3
    Have you figure out where they got the answers for cbt practice 1 buisness tax? I don't know where they got V1 Profit assessable 2009/2010 with £5290 and Russell assessable profit in 2010/11 of £4360,

    Thanks in advance
  • AshleyDAshleyD New Member Posts: 9Registered
    Thank god I'm not the only one.
    Doing a little basic maths, as £9,480 was the most the partnership made in a year and as profits are split 50/50, the most a single partner could make is £4,740 isn't it?
    The question itself is a little ambiguous though, it just states their adjusted trading profits (I'm guessing for the partnership, not each partner, although based on my quick calculation above I'm not so sure) says about the profit assessment "for 2009/10". I assume it wants it for the tax year (April to April). Anyway, I've done it 3 times and never managed to get the same answers as them.

    //Edit
    Right, I've worked it out.
    The profits for YE 31st October 2009 are assessed in 09/10 tax year (April 2010), so they've not been taxed yet. Vi's share is £4,500.
    She also has a share of 2 months of the profits from YE 31st October 2010. 2 months @ £395pm = £790
    Total: £5,290

    Harry is straightforward. (Why couldn't they all be like Harry?)

    Russell 09/10.
    Actual basis of assessment
    Profits from 1st Jan 2010 - 1st April 2010.
    3 months @ £395pm = £1,185

    Russell 10/11
    Basis periods.
    1st Jan 2010 - 31st December 2010.
    10 months of YE Oct 2010 + 2 months of YE Oct 2011 = 10 x £395pm + 2 x £205pm = £4,360

    Russell 11/12
    current year basis
    Half of the profits from YE 31st October 2011 (1st November 2010 - 31st October 2011)
    £2,460

    Overlap profits:
    Months that have been assessed twice: 1st Jan 2010 - 1st April 2010 & 1st November 2010 - 31st December 2010
    3 months from YE 31st October 2010 = £1,185
    2 months from YE 31st October 2011 = £410
    Total: £1,595


    It would have been so much easier if AAT would actually show their workings so we could see where we've gone wrong (or in some cases were they've gone wrong like in task 2.3 where they have 4,400 shares and sell 1,000 and somehow end up with 3,200) instead of just giving us a printscreen pasted into a word document.
  • TerdooTerdoo Well-Known Posts: 144Registered
    Thanks Ashley for task 1.3 Answers, I still have a problem with task 1.7 with 1/3/10 annual investment of £50000, I thought it was supposed to be £50000 divide by 3 month which is £12500 but in the answer, it was £15500 how many months did they work out? am totally lost and I got this exams next week.


    Thanks in advance
  • AshleyDAshleyD New Member Posts: 9Registered
    I have my exam tomorrow so I'm crossing my fingers I won't get any weird questions come up.
    I didn't understand that bit either at first, but looking at the answers and re-reading the Kaplan book led me to understand it as follows.

    Before April 2010 AIA was capped at £50,000 for the year with a 40% FYA for qualifying additions above that amount instead of the normal 20% WDA. If the accounts period straddles 31st Mar 2010, then the AIA for purchases up to 31st Mar is capped at £50,000.
    One lot of machinery was bought before then, coming to £45,000, and one lot was bought after at a cost of £72,000. This gives a total of £117,000.
    As the accounting period is from 1st Jan 2010 to 31st Dec 2010, the total AIA available is 3 months @ £50,000/year and 9 months @ £100,000/year, which comes to £87,500.
    What they've done is apportion the AIA to the later purchase first, leaving £15,500 to apportion to the earlier one as this allows them to use the 40% FYA on the remainder instead of the 20% WDA.
  • TerdooTerdoo Well-Known Posts: 144Registered
    Business Tax

    Good luck with the exams tomorow, I still don't know where the £15500 came from

    Thanks
  • AshleyDAshleyD New Member Posts: 9Registered
    What they did is work out the total AIA for the period (£87,500), and the total qualifying purchases (£117,000, of which £45,000 was bought before 1 Apr 2010 £72,000 was bought after 1 Apr 2010). Then they apportioned the AIA to the newest purchase (£72,000) first, leaving £15,500 to apportion against the older one.
  • TerdooTerdoo Well-Known Posts: 144Registered
    Business Tax

    Thanks for that and how was the exams today like?
  • AshleyDAshleyD New Member Posts: 9Registered
    Tricky. they seem to have done what they always do to me, in that they make the practice exams really straightforward then give you things you've never seen before in the real one. There were a few questions that were a little ambiguous, one that was phrased in a way I'd not seen before, and they mentioned PCTCT instead of TTP.
  • AAT Level 3AAT Level 3 Feels At Home Posts: 75Registered
    Hi Ashley I am sitting this exam on Monday. Do you have any suggestions as to what sections the tricky parts arose in and anything in particular I should be careful with.

    I know they say the questions are random in the exams in what you get but there seems to be some consistency in the ones that continually come up.
  • Daz1865Daz1865 Feels At Home Posts: 67Registered
    How did yours go Mr. AAT Level 3?

    I actually found mine a little easier than the mock exams for a change, so was quite happy. I'm quietly confident but guess I will have to wait until the new year now to find out.

    Merry Christmas to all.
  • AAT Level 3AAT Level 3 Feels At Home Posts: 75Registered
    I found it easier than my mock but I believe I messed up the second half of the capital allowances question. Do you think I will still be able to pass despite this? I'm not sure how many marks are allocated to that question.
  • TerdooTerdoo Well-Known Posts: 144Registered
    Re: Business Tax

    Making just one mistake cannot make you fail if you are confident with the rest, what question in the capital allowance that you messed up? I also sat business tax exam yesterday?
  • Becky VBecky V Trusted Regular Posts: 374Registered
    I sat my business tax exam in October and was convinced i failed, because on section 2 i messed up an shares question and a couple of the multiple choice but i passed, so you never know until you get that result!! Good luck!
  • AAT Level 3AAT Level 3 Feels At Home Posts: 75Registered
    Terdoo wrote: »
    Making just one mistake cannot make you fail if you are confident with the rest, what question in the capital allowance that you messed up? I also sat business tax exam yesterday?

    There was a car that I put in a column on its own that should have been added to the general pool. However I still taxed this at the correct 20% WDA so technically my capital allowances balance should have been accurate.

    However this also messed up the ceasation part of the question as I had three separate columns instead of 2.

    I definetely got 1.1, 1.3, 1.4 and 1.5 correct not sure about 1.2. Oh well guess I have to wait and see.
  • AAT Level 3AAT Level 3 Feels At Home Posts: 75Registered
    Becky V wrote: »
    I sat my business tax exam in October and was convinced i failed, because on section 2 i messed up an shares question and a couple of the multiple choice but i passed, so you never know until you get that result!! Good luck!

    Thanks.
  • j1994j1994 Posts: 106Registered
    Can someone explain the 205 for Russell?
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