Business Tax - Osborne Books

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Jo Clark
Jo Clark Registered Posts: 2,525 Beyond epic contributor 🧙‍♂️
Hello All

I feel really stupid so can someone please help me. I thought I understood this but apparently not!

http://osbornebooks.rtahosting.co.uk/osborne36/q6.asp

Why does the £15,000 Gift Aid payment go in the CAP 3 months to 31/3/2012

when the payment was made 31/1/2011?

I put it into the 12 month CAP and the answer was marked wrong.

Is there a typo in the question/data or am I missing something?

Thanks for your help in advance.


JC
~ An investment in knowledge always pays the best interest ~
Benjamin Franklin

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  • dave13
    dave13 Registered Posts: 9 Regular contributor ⭐
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    Hi,

    I don't know whether they have made a mistake or not. The Osborne book (BTX 2011/12. p5.5) I have states that "The payment date determines which CAP the gift aid payment falls into, for example if the payment was made during a "long" accounting period". So for what it is worth I agree with you.
  • Jo Clark
    Jo Clark Registered Posts: 2,525 Beyond epic contributor 🧙‍♂️
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    Thanks Dave :)
    ~ An investment in knowledge always pays the best interest ~
    Benjamin Franklin
  • anniebabe
    anniebabe Registered Posts: 595 Epic contributor 🐘
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    I have had a look - and I agree - I think they have done it wrong, I say it goes in CAP 1.
  • anniebabe
    anniebabe Registered Posts: 595 Epic contributor 🐘
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    I am stuck on the online CBE at the moment - struggling to get my head around the losses on task 2.4 - if anyone has time to explain it. would be very much appreciated.
  • Jo Clark
    Jo Clark Registered Posts: 2,525 Beyond epic contributor 🧙‍♂️
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    anniebabe wrote: »
    I have had a look - and I agree - I think they have done it wrong, I say it goes in CAP 1.

    Thanks Anniebabe :)
    ~ An investment in knowledge always pays the best interest ~
    Benjamin Franklin
  • guinea pig
    guinea pig Registered Posts: 402 Dedicated contributor 🦉
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    Hi Jo,
    I haven't done this unit, but I guess that you are using books only recently updated, due to the new tax year, and inevitabley there are sometime errors. Get in touch with Osborne, and ask them to check it - I came across several errors in their books, and they checked them quickly, and also sent a small reward!
    Good luck,
    GP
  • Jo Clark
    Jo Clark Registered Posts: 2,525 Beyond epic contributor 🧙‍♂️
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    guinea pig wrote: »
    Hi Jo,
    I haven't done this unit, but I guess that you are using books only recently updated, due to the new tax year, and inevitabley there are sometime errors. Get in touch with Osborne, and ask them to check it - I came across several errors in their books, and they checked them quickly, and also sent a small reward!
    Good luck,
    GP

    Hello GP

    It is the online test.

    I will give them a call tomorrow if I can find a number as I feel it important that it is corrected if incorrect so other students don't worry like I did.


    JC
    ~ An investment in knowledge always pays the best interest ~
    Benjamin Franklin
  • Jo Clark
    Jo Clark Registered Posts: 2,525 Beyond epic contributor 🧙‍♂️
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    anniebabe wrote: »
    I am stuck on the online CBE at the moment - struggling to get my head around the losses on task 2.4 - if anyone has time to explain it. would be very much appreciated.

    Hello Anniebabe

    Here is my explanation, I hope it helps.

    The amount of loss brought forward from 2009/10 is £4,500.

    The first question asks the amount of loss from 2009/10 used in 2010/11. If you look at the fugures in the table for 2010/11 you have a gain of 17,000 and a loss of 3,200. After setting the current year loss against the current year gain this leaves you with a gain of 13,800. The annual exeption is 10,600, therefore to reduce your gain to the annual exemption amount you can use 3,200 of the loss from 2009/10. This leave 1,300 of the loss to carry forward – answer to the second part of the question.

    The answer to the annual exemption amount is 10,600. The amount of the chargeable gain for 2011/12 is 20,100 – 5,700 = 14,400 less the loss brought forward of 1,300 = 13,100 less the annual exemption of 10,600 = 2,500.

    Hope this helps.

    JC :o
    ~ An investment in knowledge always pays the best interest ~
    Benjamin Franklin
  • anniebabe
    anniebabe Registered Posts: 595 Epic contributor 🐘
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    Ahhh yes, I think I get it now - thanks Jo.
  • Jo Clark
    Jo Clark Registered Posts: 2,525 Beyond epic contributor 🧙‍♂️
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    Jo Clark wrote: »
    Hello GP

    It is the online test.

    I will give them a call tomorrow if I can find a number as I feel it important that it is corrected if incorrect so other students don't worry like I did.


    JC


    Hello

    I have just phoned Osborne and they have confirmed that question 6 of the BTX Test 1 online is incorrect and that it had already been pointed out them by a tutor. It is on their list of updates to do.

    That's all, have a good day :)


    JC
    ~ An investment in knowledge always pays the best interest ~
    Benjamin Franklin
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