HELLPP!!! Personal Tax

Jade95

Hi all

I have my personal tax exam tomorrow and have just tried the online practice FA2012.

I have a few questions on how certain things have been calculated...

Task 1.5

This is a car benefit question - I can see how they have got to the petrol car figures but not the diesel.

Diesel 142g/km
Cost £22300
List price of £25900
The employee had the car from 1 July 2012 to 5 April 2013
The employee pays £300 per month for private use of the car

The question asks to work out the; AAT Answer
Taxable benefit on provision of the car £1573
Taxable benefit on provision of fuel £3333

Can anyone show me how they worked this out please?

Task 1.10

This question is about tax on dividends.

John has income of £33970 - no allowances have been used yet
His gross dividends are £1000
What tax is due on the dividends? AAT Answer £235

Can anyone show me how they worked this out please?

Task 2.6

This question is about shares.

In May 2000, 200 shares were bought for £6760. In January 2004, 50 shares were sold for £1880.
On 19 November 2012, 100 shares were bought for £4200. On 30 November 2012, 75 shares were sold for £3000.

I calculated the gain on disposal right for the November shares. The thing that I didn't understand was the AAT had the cost of the 50 shares in January 2004 as £1690.

Is this a typo error or have I done something wrong, as I just inputted the £1880?

Thank you in advance.

Also has anyone got any last minute tips!!!

Jade

Nps

Hi, I can only help with the question about shares as I am not up to date with all the tax bands for the other questions (afraid I have no time to look them up as due at the childminders in 10mins).

The £1880 is the income from the shares, not what they actually cost the seller. They cost the seller (in May 2000) 6760/200 x 50 = 1690

If no one has helped with the other questions, I'll see if I get 5 mins to look up the most recent rates. But am mum for the afternoon so it would be after bed time at the earliest.

jenny3549

Hi Jade,

1.5:

Appropriate percentage (140-100/5) = 8 + base 11 + additional 3 for diesel = 22%
Therefore Car Benefit:

List price (25900x22%) 2698
Less: Unavailable (5698 x 3/12) (1425)
Less: Contribution (300x9) (2700)
Benefit £1573

Fuel Benefit:
20200 x 22% 4444
Less: Unavail. (4444 x 3/12) (1111)
Benefit £3333

1.10:

Not sure if there is missing info here as, if his total income income is £34970 (inc gross dividends), then after deducting his personal allowance, all his income falls into the basic rate and there would therefore be no additional tax due on the dividend. Sorry!

2.6

The cost of the shares sold in Jan 04 is based on their original cost (6760 / 200 shares = 33.80 per share) therefore 50 sold at 33.80 = £1690. The £1880 is their selling price not their cost.

Hope that helps (a bit!)

Jade95

Hi

Thank you that makes sense now.

Jade