# Business Tax FA2016 (Osborne book) - help..

Just JoinedRegistered Posts: 23
Hi,

Can anyone help with the following as i seem to get different answers compared with answers in the back of the book;
practice assessment 1 task 2 a) share of profits for Molly £17,710 and Nigel £14,490?

task b) Molly NIC (class 4 contributions @ 2%) £379.64?

practice assessment 1 task 11 b) Is there any easy way to breakdown this question down as i don't appear to get anywhere near the answer?

practice assessment 2 task 1 c) ?

practice assessment 2 task 11 b) Steve's working were straight forward, not sure how to break down Sonia's?

practice assessment 3 task 6 a) How do you work out the £13,850?

practice assessment 3 task 8) ?

Many thanks

• MAAT Posts: 42
@LouboutinLou1

Osborne Books Business Tax AQ2016 Workbook

Practice Assessment 1

Profits Apr-Oct: £109920 * 7/12 = £64120
Molly's share: £64120 * 3/5 = £38472
Nigel's share: £64120 * 2/5 = £25648

Profits £109920
Less salaries £30000
Less interest on capital £2640
= £77280 * 5/12 Nov-Mar = £32200
Molly's share: £32200 * 55% = £17710
Nigel's share: £32200 * 45% = £14490

Class 4 NIC at 2%
5/12 of salary and interest on capital £5800
Plus profit share Apr-Oct £38472
Plus profit share Nov-Mar £17710
= £61982
Minus £43000
= £18982 * 2% = £379.64

Work through the question in order and draw a chart to help understand. Do you need the calculations?

Practice Assessment 2

Use the AAT reference material "sole traders - change of accounting date"

£35000 minus £11100 (annual exempt amount) = £23900 chargeable
Gains chargeable at 10% is the basic rate band £32000 minus taxable income £18500= £13500
£23900 minus £13500= £10400 gains chargeable at 20%

Practice Assessment 3

31 Jan 17
Alison had made payments on account for 2015/16 based on the tax due for 2014/15 (£18400)
So £21500 - £18400 = £3100 still due on 31Jan17 for 2015/16 return
She also has to make a payment in advance for 2016/17 on 31Jan17 and this is half of £21500 = £10750. The other half is paid on 31Jul17
£3100 + £10750 = £13850

The company wishes to claim any loss relief as early as possible-
First offset the loss against the TTP of the year of loss (2016) which is £12400
£85000 minus £12400 leaves £72600 to offset against the previous year (2015) TTP
Again, you can use the AAT reference material

Hope that helps
• Just Joined Registered Posts: 23
A great help, many thanks
• Registered Posts: 8
Hey guys can you tell me how to get the answer for assesment 1 11b. For the first question gain/loss on sale of shares on 12 Jan 2017 I get 1400 loss!

1800/5000×15000=5400

5400-4000=1400

• MAAT Posts: 42
@eva518

Have a look at the share matching rules for individuals in the Tutorial
Carol is an individual who bought and sold shares in Ceeco Limited therefore the share matching rules are:
- First any shares bought on the same day as disposal are matched
- Then any shares bought in the 30 days AFTER disposal are matched
- Any remaining shares are deemed to have come from the 'FA 1985 pool' of shares

So back to the question, carol sold 1800 shares for £4000 on 12 Jan 2017 and bought 6800 shares totalling £21080 on 1 Feb 2017, this is within 30 days of disposal therefore we match it first

(£21080/6800)x1800= £5580 cost
£5580-£4000 proceeds = £1580 loss

Hope that helps