AAT Level 4 Personal Tax CBT 2 Task 3

Stuart84Stuart84 Posts: 5Registered


I cannot for the life of me understand why the £4,000 loan is a benefit. I thought all loans under £10,000 were exempt?

I have seen this task posted twice in this forum and no-one asks about the loan so I'm thinking my understanding must be wrong. I have gone back over the Kaplan and Osbourne textbooks and still can't understand. Can someone tell me what I am doing wrong please.

PS, my exam is tomorrow morning

Comments

  • Stuart84Stuart84 Posts: 5Registered
  • CornishPixieCornishPixie Posts: 107Registered, MAAT, AATQB, AAT Licensed Accountant
    I think it's a benefit because if the loan (of any amount) is written off by the employer, then the whole amount is assessable.
  • CornishPixieCornishPixie Posts: 107Registered, MAAT, AATQB, AAT Licensed Accountant
    I used Osborne books as well and it's just one small sentence towards the top of page 4.7. If your book is the same as mine, it's the sentence just above the example.
  • Stuart84Stuart84 Posts: 5Registered
    OK, but I don't see in the question that it was written off?
  • CornishPixieCornishPixie Posts: 107Registered, MAAT, AATQB, AAT Licensed Accountant
    It is in the question information - look at 1 January 2019 entry
  • Stuart84Stuart84 Posts: 5Registered
    Ahhh, I knew it would be something silly, thank you for pointing it out!
  • CornishPixieCornishPixie Posts: 107Registered, MAAT, AATQB, AAT Licensed Accountant
    How did you get on yesterday?
  • Stuart84Stuart84 Posts: 5Registered
    It went well, much easier than the mocks I did anyway.

    All of my larger tasks were on the easier side of all the practise questions I had done. For example my Inheritance tax task didn't have a lifetime PET and the most difficult part was working out that his deceased wife had used 60% of her NRB. No charity donations.

    My shares question had 2 sales, 1 matched to the pool and 1 matched to a purchase 20 days later.

    I had to do 2 income tax computations. 1 needed the personal allowance calculating as she earned over £100k and the other was very easy, she was a basic rate tax payer.

    All in all it was much easier than expected!
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