Business Tax AQ 2016 question - please help
Megan1
Registered Posts: 25
in Business Tax
The following is a question and explanation from green light
James Ltd has trading profits of £450,000 for the year ended 31 March 2017. This included dividends received of £5,000 and a write off in the expenses of £10,000 due to theft of cash by a director. The taxable total profits are:
£450,000.00
£455,000.00
£440,000.00
Correct £445,000.00
Explanation of the correct answer:
The dividends received are not taxable as they are not trading receipts. The loss due to theft is not allowable as this was carried out by a person who had control over the business.
I don't understand why the correct answer is £445000.
My working is 450000-5000+10000=£455000
Could anybody help please? Many thanks in advance.
James Ltd has trading profits of £450,000 for the year ended 31 March 2017. This included dividends received of £5,000 and a write off in the expenses of £10,000 due to theft of cash by a director. The taxable total profits are:
£450,000.00
£455,000.00
£440,000.00
Correct £445,000.00
Explanation of the correct answer:
The dividends received are not taxable as they are not trading receipts. The loss due to theft is not allowable as this was carried out by a person who had control over the business.
I don't understand why the correct answer is £445000.
My working is 450000-5000+10000=£455000
Could anybody help please? Many thanks in advance.
0
Comments
-
It appears unlike a lot of examples to be working from Trading Profits, not Net Profits (from SPL) so the sums would be reversed, as far as I can see it. Otherwise your logic would be correct about deducting non-trading income and adding non allowable expense.
I haven't done any green tests since half way through L3 as found errors and got no response on reporting them0
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