BTC Query on Dec 05 paper - Help pls!

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi All

Studying on my own, and no one to ask.....

It would appear that on the Dec 05 paper in Task 1.3 the business mileage is added back to the Net profit.

In the information given it says that the HMRC agreement is that 60% is business, therefore one assumes 40% private use which should be added back to the Net profit. HOWEVER, from the way the assessor's report is written one is led to believe that the business mileage is disallowable.

Am I interpretting it incorrectly, am I missing something fundamental?

Please help.
Thanks
Judy

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:BTC Query on Dec 05 paper - Help pls!

    Hi Judy,

    I agree with you; just checking my answer and couldn't understand why it was wrong. It is definitely the private portion you add back as non-allowable.

    On task 1.2 only the 40% private has been disallowed on the tax return - even though 60% was written as disallowable in the question :roll:

    Is there any hope?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:BTC Query on Dec 05 paper - Help pls!

    Me again;

    I have looked at my text book again and it clearly states that where there is dual purpose expenditure, the private expenditure is non-allowable.

    Looking back at June 2004 paper, question 1.1. The private motor expenses were the amounts added back - not the business ones
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:BTC Query on Dec 05 paper - Help pls!

    Hi

    We did this question in class and the tutor said it is the personal proportion that you add back.

    Apparently the AAT messed the exam paper up, tried to correct it and then messed it up even more!

    Hope this helps!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:BTC Query on Dec 05 paper - Help pls!

    Thanks for the relpy - that will certainly clear things up for tomorrow. :)

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