Business or Personal Taxation

Hi Rudd,
Personal Taxation (PCT= Personal Taxation Computations) is the easier of the two subjects. However, you may wish to keep your Business Taxation book for future reference as it is likely you will want to refer to it once you get a job.

Note that in your personal taxation exam scenarios you are likely to be given figures for business profits in addition to a salary relating to a person. Therefore although you wont have to apply the calculations to arrive at a figure for business profits you will be you are likely to have to consider business profits as part of a someones personal income and then calculate the Total Tax Liability and Tax Due based on these different forms of income.

You may wish to remember the important distinction between Total Tax Liabiity and Tax Due. Total Tax Liability is the figure before you subtract tax which has already been paid and Tax Due is the figure you are left with after subtracting the tax already paid.

e.g Tax Due= Total Tax Liability-Tax Already Paid

Or in this logical order:

Categorise & calculate gross income=> Apply Personal Alowance=> Calculate Tot Tax Liab=> Calculate Tax Due

Also make sure you are very familiar with CGT (Capital Gains Tax) rules on wasting and non wasting Chattels.

I recommend you get both the Osborne and BPP books for Personal Taxation if you can afford both. The BPP PTC book can be a bit vague in areas which is likely to impact on your exam result.

I hope this helps

Rudd wrote: »

Thanks RichardK.
I appreciate your help. I am using Kaplan books are they better than Bpp and Osborne??
I think I have to do PTC. I am already working as Accounts Payable of which I dont do any Returns yet. i just want to finish AAT and move on.

many thanks
Rudd

Hi Rudd,
In which case I strongly advise you to invest in the Osborne book to be on the safe side. Their passcards can also be very helpful in the final days before the exam.

I hope this helps.