BTC

System
System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
edited 10:26AM in AAT student discussion
So how did everyone find it? Thought section 1 was different and harder.
ยซ1

Comments

  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    I agree. I found part 1 hard. Part 2 did okay I think, but realised I made a mistake when I walked out the exam.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    Which mistake did you think you did petrolmonkey? in section 2, did we need to use the dividends are F.I.I to get the "profits" figure? also, were we supposed to half the limits due to there being an associated company also? i did, whihc eman it fell into the full rate minus marginal relief??
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    I thought part 1 was ok. In section 2 I didn't apply FII to dividends (and spent ages thinking about whether I should have done or not!) but I did divide the limits by two as well to get full rate less marginal relief. :?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    Hi everyone,

    My head is totally in the shed! after this morning's exam nothing what I expected. I also found section 1 difficult and struggled with the 16 months accounts and overlap. Got muddled with the dates which I could kick myself about. You always remember things when you leave the exam!
    Section 2 I found ok apart from didn't know what to do with the capital gain on the shares and also multiplied "profits" figure by 30% instead of the other figure! One thing I did remember was adding FII (dividends)and the associate company!! I've got FRA tomorrow and feel sick!
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    Hello,

    i thought section one was harder than section 2, i was so glad to see the written question was about IBA so managed to get that one done first, my major sticking point was the overlap profit, i got over lap profit of the fist 3 months and that was it!!The FII i remembered and saw the associated company after i had finished so ended up scribling it all out and doing it all again! - its so hard to read it properley sometimes!
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    I revised loads about losses and what relief you can get, gift relief, rollover relief and NI - corporation tax and weren't on ! I'm still going over what I should have done although nothing I can do about it now just hope i've done enough to pass... miracle needed !

    Good luck for PTC on Friday!

    :)
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    Two mistake son part 2, forgot to add back in the Gift Aid and deducted the Donation to trade association, apart from that I think I did ok.

    PM
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    Skipper

    The dividen was from a UK company therefore was gross of tax, so you had to work out the total profit.

    PCTCT + Dividend.

    My figure came out between tax bands 50,000-300,000 which is taxed at 19% with no marginal relief.

    Hoping wont get marked down too much. Brain starts working over time when you come out of the exam.

    PM
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    I was so shocked by today's BTC exam. I don't normally post many comments on this forum but i feel the need to express just how difficult i found the paper.

    I've studied non stop for the past week and was certain that i covered all areas, even over-lap profits but i was completely thrown by the 16 month period.

    I split the capital allowances computation in the first question and then when i came to the overlap profits, i had an overlap profit on 3 months at first and then i kept changing my answer and changing it again. I can't even remember what the final result was.

    I feel sorry for the person marking my exam, there were workings all over the place.

    I found section 2 ok but i'm pretty sure i failed sections one. I hope i'm wrong. I'll just have to wait and see now.

    Now all i have to do is study for PTC on Friday. :-(
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    I agree, i used so much tippex. I must of crossed out my answers about 4 times.

    My overlap profits turned out the be 11 months (ร‚ยฃ26K) Date I think was 1/5/05-5/4/06.

    Roll on Friday PTC to go.

    Good luck
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    I got something similar to that at first and then i changed it about 20 times.

    I think i ended up with something like 14.5k in over-lap profits from but then i can't remember whether that was in my workings and i changed my original figure to that or what.

    I changed it so many times, i really can't remember what my final answer was. That was the only question i think i struggled with so hopefully it wont count for too many marks.

    On reflection....i think the 26k is about right. I've been trying to work it out ever since i got home because it's really playing on my mind, i know there's no point worrying about it now though.

    I must admit. I'm feeling really depressed today. These are my final two exams and i wanted a clean run with no fails, looks like this could be my first. :-(
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    I might of lied I think my overlap profits was ร‚ยฃ23.9 K. So many answers I cant remember what I wrote down in the end
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    Sara

    You sound like I feel. My last two papers too and no fails so far. Looks like this could be the first.

    Bit of a bummer, was hoping to start ACCA by Jan 07

    PM
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    Yeah, i think it might have been 23k ish...i think i worked something out like 23.5k.

    I got a total assessable profits for the 16 month period as about 34,133 if i remember right (which i probably don't) and i divided that by 16 months and then multiplied it by 11 month which equals something like 23.5k.

    Although, like i keep saying, i think that was in my workings at not my final answer. :roll: But hey, they always tell you to show your workings even if the answer is wrong so maybe i'll get some credit.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    The capital allowances were calculated in two stages the first stage was from the period 1/01/05 - 31/12/05

    The second stage was 1/01/06 - 30/04/06. Hence the allowances should have been pro rata'd by 4/12

    The total allowances profit after capital allowances should have been pro rata'd again 12/16 and then 4/16

    to give the periods
    01/01/05 - 30/12/05 and
    01/01/06 - 30/04/06


    The base periods were 01/01/05 - 05/04/05 Tax year 04/05

    01/01/05 - 31/12/05 05/06

    I got stick on the third base period.

    Looking at the question again I think there were two overlap periods.

    Section 2 The donations and the Gift aid should have been added back to the profit as the donations were non trading expenses

    Any one got the same as me.


  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    Hi those were my figures also so lets hope that they were correct not sure if we should be dissuccing actual figures on here yet though the AAT are saying dont post any figures until after 2pm tomorrow at least i think thats what they are saying?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    phew, i'm not the only one struggling on section 1.
    Regarding cap allowances i just took the whole 16 months and didnt split into 12 and 4, isnt taking the whole as 16 the right way?
    The overlap profit i got was around 23760 or something i guess. I kind of just guessed all of Task 1.4 (all the dates and stuff), my brain went blank in regards to that!!
    Section 2 i added back political party and gift aid. I would presume donation to trade association is advertising hence allowable. Anyone in the same boat as me?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    It was my last exam today passed other 4 so hopefully they'll go easy on the marking.
    I thought section one was a pig. No one in my class got the same answer. I split the two capital allowances and then took them of the profits that I had split into accounting periods, which I know is right at all. I thought the profits used for the second accounting period was 1/1/05 - 31/4/05 and then 8/12ths 01/5/05-31/4/06 but as I say I don't think I should have split the period at all, but I did get around 23k as my answer, so not all may be lost.

    Second half I flew through, you need the FII to come to the "profit" you use this for your tax band. You also divide the tax band by the number of companies in the group i.e. 2, this means that you use the higher 30% tax with marginal relief. I hope this has helped anyone out there. Reading everyone's coments has certainly made me feel better, even if I did fluff the first 3 questions. Will probably be back in June commenting on the retake. :cry:
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    For the toal profit I got ร‚ยฃ31642

    for the first base period ร‚ยฃ5933 01/01/05 - 05/04/05

    second base period 01/01/05 - 30/12/05 ร‚ยฃ23732

    The dividends were grossed up 100/90 came to 45000

    tax bands should have been divided by 2 and the band was 30% MR Corporation Tax was ร‚ยฃ8867
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    Donations to Political Parties and Trade Unions should have been added on to the profit with the Dividends received and proft on sale of shares deducted from the Net profit as well as the capital allowances.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    Donations to trade associations are deductable as trading expenses.

    Dividends from another UK company are paid gross of tax, I thought you did not need to gross up figure.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    I thought Donations were not allowed, since donations have nothing to do with actual trade, I will check with my tutor.

    Looking back at the osborne books any Dividends received have always been grossed up.

    Anyone else gross up the dividends and what did everyone else do with the donations.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    I grossed up dividends, and disallowed donation to political party but allowed the other one.

    Regarding capital allowances in task 1.1, i think i got something like 8440, anyone else got anything similar? I took 16 month period as whole and didnt split it up into two and i'm not sure if thats right or not!!!!!!
    DFS tomorrow and could be last AAT exam for me but the big 'IF' i pass both these papers!!
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    Donations such as politial donations are not allowed but subscriptions and trade association are This is where it would be seen as being a form of advertisement for trade is.

    I got around ร‚ยฃ8.1K for 1.1
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    Agree with you petrolmonkey in regards to donations.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    Uday, glad someone agrees with me. Got confused I think with my dividend, forgot to gross up figure. I got confused with interest received which is gross of tax.

    Never mind.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    Did everyone allow for the capital allowances for small companies (50% fya) which was applicable from the 01.04.04 - 31.03.05? I'm sure there were two purchases on the 01.01.06.

    I got ร‚ยฃ7440 for my capital allowances from 01.01.05 - 31.12.05 and i can't remember what i got for period 01.01.06 - 30.04.06 but it was a small, something like ร‚ยฃ900.

    I split my capital allowances into two periods and then split the profit of ร‚ยฃ43000 that was provided, between the two periods and deducted the capital allowances.

    I'm so worried about this exam, i know there isn't alot i can do about it now but it doesnt stop me from being dissapointed.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    Sara

    There were two capital purchases for 1/1/05 at 50%FYA and one at 40%FYA which was purchaases on 1 July 05, this is after the small enterprise allowances date of FYA 50%.

    FYA 50% is only available one year between 6 Apri 04 to 5 April 05.


    My answers were similary to yours and I did the same by splitting the profit and allowances into to 12 months + 4 month period.

    I am worrying too. My last two exams this week. Shame we have to wait until February. Doea anyone know when in Feb the results come out?

    PM
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    Phew..that's what i thought. I was starting to think that maybe i was going mad.

    I've spoken to some people who didn't even take it into account so i'm glad that i wasn't the only one who noticed to 50% FYA.

    I don't have any idea when the results are out in Feb, it's usually about the middle of the month, between the 14th and 18th i think.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:BTC

    The results are emailed to you on 20th Feb, so should get them in the post the next day if you're not registered.

Categories

Privacy Policy