Business Tax Help needed!!

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Flying Scarlet
Flying Scarlet Registered Posts: 42 Regular contributor ⭐
in AAT Level 4 (Level 8 in Scotland)
Hi All

Ok so Ive done the PEV paper this morning & my attention now turns to what is by far my biggest weakness on the whole course! I just havent taken to Business Tax & am really struggling to understand it. I am working my way through the book at the moment reading & doing activities on the chapters but still feel weak when i come to the practice papers.

What definate things will come up?

I know the HMRC form will but what else do I need to concentrate on? Please dont say everything as that really wont help.....

Thanks in advance!

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  • Flying Scarlet
    Flying Scarlet Registered Posts: 42 Regular contributor ⭐
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    Anyone???!! :crying:
  • lala2009
    lala2009 Registered Posts: 95 Regular contributor ⭐
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    Hey

    I would say captial allowances for sure! Then maybe chargeable gains and working out the PCTCT and Corp Tax payable..... I was told capital allowances pretty much guaranteed. I'll be on here all day so if you need any help with any questions I will try and help :)
  • Flying Scarlet
    Flying Scarlet Registered Posts: 42 Regular contributor ⭐
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    Thankyou- LOL you really dont want to offer help! I just dont know what it is about tax- I think as I dont do it in work it doesnt sink in.

    At the mo, I am cramming Chargable gain, adjusting profit, corp tax, NI rates, cap allowances & the form....

    I hate this so much that at times I just want to bang my head on a brick blydi wall!!
  • lala2009
    lala2009 Registered Posts: 95 Regular contributor ⭐
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    Hahahah ah bless ya! It isn't the easiest subject, but the more you practise the easier it gets..... are you using the Osborne Textbook? There are lots of practice exam papers in the back of the book - they're great! :)
  • Aaron C Rescue
    Aaron C Rescue Registered Posts: 76 Regular contributor ⭐
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    Right - this is a business tax paper so.... looking over the papers they always ask about these -

    Adjusted Trading profit
    Capital Allowances
    Taxable Trading Profits
    assessable Profits
    Chargeable gains
    PCTCT
    Coporation tax - small companies/big companies

    and to get to those figures you may be asked to calculate these -
    Disposals
    IBAs
    FYA
    CAPs
    Marginalrelief
    FII
    Increase/decrease on bad debts
    part private usage
    Overlap profits
    Share indexation rights & bonus issues and disposal
    chargeable gains/losses on disposals
    Entrepreneurs allowance
    Gift Aid
    NICS
    Associated companies
    Tax years filing dates and penalities
    Tax return forms
    Partnership division
    lease of expensive car
  • Flying Scarlet
    Flying Scarlet Registered Posts: 42 Regular contributor ⭐
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    LOL its just so strange to me!! :confused1:

    Im using the BPP one & I found the first exam ok, when I got my head round it. I couldnt work something out on the Capital Gain so posted it on here & got an answer.... Theres just so much to remember, like WDA, AIA, IBA etc!!! :confused1:
  • lala2009
    lala2009 Registered Posts: 95 Regular contributor ⭐
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    Yes you're right, but remember most of the rates and formulas are given in the exam paper so that makes life that little bit easier :)
  • Flying Scarlet
    Flying Scarlet Registered Posts: 42 Regular contributor ⭐
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    I know, at least I dont have to remember them!!
  • Mathew_Hill
    Mathew_Hill Registered Posts: 23 New contributor 🐸
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    Hi lala and flying scarlet

    I'm pretty pants at tax too...the majority of my college group hate costing and love tax... well I'm the other way round!

    I am calculating an adjusted net profit at the mo.

    I was wondering if a profit or loss in something which is deducted in the P & L does this have to be added back onto the net profit?

    Reason for asking, is in the paper I'm currently doing, there is a profit on the sale of shares of £425,380. I added this back on to my net profit but I looked in the answers and they haven't.

    Therefore I was wondering why and if there is any rule regarding profits/losses in the P&L?

    Thanks

    Matt
  • lala2009
    lala2009 Registered Posts: 95 Regular contributor ⭐
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    HI Matt
    If you have a profit on sale of share you would deduct it from the net profit. this is because it is income that is not taxable as trading income. :)
  • 111beckstar111
    111beckstar111 Registered Posts: 158 Dedicated contributor 🦉
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    Hi Lala :)

    ARe you any good with basis periods??
  • lala2009
    lala2009 Registered Posts: 95 Regular contributor ⭐
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    Hey Beckstar!!!!

    How did you get on with PEV? Yep I'm ok with basis periods... I think!! :) ask away and I'll do my best :)
  • 111beckstar111
    111beckstar111 Registered Posts: 158 Dedicated contributor 🦉
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    Yes found PEV okay :) How about you?

    Yes struggling a bit on them - can you explain them in an easy way to get my head round please?
  • 111beckstar111
    111beckstar111 Registered Posts: 158 Dedicated contributor 🦉
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    Are we given the Retail Price Index (indexation allowance) in the Business Tax Exam?
  • lala2009
    lala2009 Registered Posts: 95 Regular contributor ⭐
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    Yeah it was ok, made some silly silly mistakes but only on the little 10min questions so hopefully I wont be marked down too much!! Feeling ok about it though :)

    Ok, when commencing to trade the first basis period is from the date of commencement of trade to the 5th April in that tax year.

    EG. If the company commenced trading on 1st Jan 2009, the 1st basis period would be:

    Tax Year 08/09 - 1st Jan 09 - 5th April 09 = 3 months (you dont count the 5 days in Apr)



    Now if the 1st year ended in 31 Dec 2009, then the 2nd basis year would be

    Tax Year 09/10 - 1st Jan 09 - 31st Dec 09 = 12 months - the second basis year has to be 12 months



    Does that make sense so far? Sorry I'm not the best at explaining! :)
  • 111beckstar111
    111beckstar111 Registered Posts: 158 Dedicated contributor 🦉
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    Yes got that thanks ;)
  • lala2009
    lala2009 Registered Posts: 95 Regular contributor ⭐
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    Ok, I'm not sure where to go from here!!!! AAAAH it's so difficult to explain.... Do you have the Osborne book? :)
  • 111beckstar111
    111beckstar111 Registered Posts: 158 Dedicated contributor 🦉
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    Yes just reading through it now step by step lol

    I will come to basis periods soon and have a nightmare with them. I have got loads of other books about them too ;) I'll try and get my head around it!!!
  • lala2009
    lala2009 Registered Posts: 95 Regular contributor ⭐
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    I know, its so hard to get your head around,took me ages! The book is very good if you work through the examples... if there are any particular questions that you dont get, I can try to explain - just not very good at making up scenarios myself! Hopefully it wont come up in the exam!:)
  • Londina
    Londina Registered Posts: 814 Epic contributor 🐘
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    lala2009 wrote: »
    I know, its so hard to get your head around,took me ages! The book is very good if you work through the examples...

    which book do you have? is there a practical example for the second year options? (please see my other post, I'm looking for it:001_unsure:)
  • lala2009
    lala2009 Registered Posts: 95 Regular contributor ⭐
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    Hi Londina

    It's the Osborne book :) and it has plenty of examples :)
  • Londina
    Londina Registered Posts: 814 Epic contributor 🐘
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    lala2009 wrote: »
    Hi Londina

    It's the Osborne book :) and it has plenty of examples :)

    I got Kaplan one...and trying to work out from their examples...

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