Aat level 4 business tax - doubting myself!

Hopeful148
Hopeful148 Registered Posts: 11
Hey everyone!
So I’ve just sat my business tax exam today, and stressing like mad.
Can anyone please clarify for me when disallowing expenses - I presume both uk and overseas customer entertainment is disallowed?
Also, there were two seperate options for disallowing lease of a car and one of a van, both with higher emissions. Do you disallow 15% of just the car or the van too?
It’ll drive me mad if I don’t know!
Thanks :)

Comments

  • _Jordan_
    _Jordan_ Registered Posts: 5
    Hi,

    I would say definitely yes - both overseas and UK customer entertainment would be disallowed because it's still customer entertainment regardless of the country it takes place in.

    I'm not 100% sure on this one but I would say only 15% of the high emission car would be disallowed because I can't find anything about a high emission van in my textbook and they seem to be treated differently to cars in capital allowances and personal tax. My first thought would be that the lease of the van is allowable but I could be wrong.

    If someone else could clarify for certain, I'd be really interested to know as I'm sitting my Business Tax exam in less than two weeks. It sounds like the questions were really difficult!
  • Hopeful148
    Hopeful148 Registered Posts: 11
    Thank you for that, those are the answers I went with! But you know what it’s like coming out of an exam and wanting to know if it’s right haha.
    I couldn’t find anything on vans either so I only had one space left and put the car as disallowable over the van as I figured this could be more of a business vehicle!
    It was a mixed bag really, I struggled on the capital allowances and share pools but I don’t think I put enough work in to the layouts really! The rest were a mixed bag, the reference material was very useful!
    Best of luck with yours :)
  • _Jordan_
    _Jordan_ Registered Posts: 5
    You're welcome :)
    I do know, I go over the exam questions I had in my head for days!

    Thank you, hopefully it will be good news for you when you get your results!

    Any ideas on what topics may come up on the writing question? It's the question with the most marks in the exam and from the AAT practice papers, I'm thinking it could possibly be on badges of trade or IR35 but surely there must be other topics it may cover? If you could let me know if you're aware of any others, that would be great!
  • Hopeful148
    Hopeful148 Registered Posts: 11
    Thank you, fingers crossed!
    I’m not too sure, I’d say definitely the areas you mentioned, maybe R&D, and possibly the rules with Chattles etc the calculations.
    Just have a basic understanding of it all that you can expand on if needed!
    Best of luck :)
  • Alsa
    Alsa Registered Posts: 16
    Oh, i have a same question in my assessment. I think i do wrong, there is not enough space for the van and entrainment outside of UK customers expense added back. Finally i choose 15% van expense added back.
    Firstly, i add all entertainment customers' expense back, finally i change it.
    I only can say to myself lucky......to the rest things of the assessment.
  • Hopeful148
    Hopeful148 Registered Posts: 11
    I'm sure you'll have done great! When do you get your results?
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