BTX- one of those days CAPS

topcat

I do not understand why the first box is wrong i get 5 months taking me up to 5th April = $29,250/12*5 = 12,187.50? The answer is $14625 which is 6 months ? (have i gone mad)

The second one 11/12 has the period august 11 which falls into this tax year , although because it is shorter then 12 months you have to tax the whole first tax year of business so $29,250 + 2 months of the next period which is $9360 = 38610 (which is the answer) . But is my trail of though to get to the answer on the right lines?

Makkusu

Hi Topcat,

You seem to have noticed the first period is 10 months long but not applied it to your formula! Therefore I got the below:

2010/11 = £29250*5/10 = £14,625

I believe you understanding is correct, and you'd have overlapping profits as a result.

topcat

Makkusu wrote: »

Hi Topcat,

You seem to have noticed the first period is 10 months long but not applied it to your formula! Therefore I got the below:

2010/11 = £29250*5/10 = £14,625

I believe you understanding is correct, and you'd have overlapping profits as a result.

Hi Makkusu

thanks for your help i understand now , just takes someone to point out the obvious sometimes to me

had one of them days where every answer is almost wrong