Hmmm PTC

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hello guys.

I just read that you were supposed ot extend the basic rate income tax band by the grossed up pension contribution(£300) i think, but when calculating the employment income were you just supposed to take off the net amout of i think £265?

Also don't suppose anyone else got the 1985 pool gain to something like 7004.99? Coz i reckon mine was wrong! Think i messed up when you had to index twice upto Jan 95.

One last thing, the question about the company buying the sofa or loning the money, did people put to loan the money, i did, i also metioned that if she made a capital repayment during the year to reduce the loan to less than £5000 then there was no taxable benefit, althpugh i think that might be wrong!

How did everyone esle find it?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Hmmm PTC

    I thought it was a lot nicer than it could have been!
    I said the loan option was the best idea too as she'd only have to pay 5% back each year as oppoosed to the whole lot (cost to employer etc) - hope that was right!!!!
    Did you feel happy afterwards though about it?
    Am not too sure about any of the ones I've done this week now after reading other peoples comments!
    Ne'er mind, can always take the damn things again in May!!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Hmmm PTC

    I've no idea how i've done to be honest.

    Spent lots of time revising stuff that never came up like private residence relief & other stuff that didn't come up, so i was kind of hoping for that.

    Just have to wait and see now i guess, fingers crossed!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Hmmm PTC

    I put that you were better off loaning the money. The benefit was 5% times £6000. The sofa as a gift I calculated the benefit to be £6000 times 20%!! Is this right?? Can't remember much of my other answers though??
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Hmmm PTC
    Wilko wrote:
    I've no idea how i've done to be honest.

    Spent lots of time revising stuff that never came up like private residence relief & other stuff that didn't come up, so i was kind of hoping for that.

    Just have to wait and see now i guess, fingers crossed!

    Good luck!

    There was NO WAY I was revising principal private residence relief. It was not worth learning it (and getting it wrong!) for the amount of marks it might have been worth!!! I looked at in the past papers and quickly turned the page!!!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Hmmm PTC

    i think it would only be £6000 x 20% if she were loaning the asset? I thought if the company bought it for her the benefit was the £6000 the company paid???
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Hmmm PTC

    now i wish i hadn't revised private residence relief
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Hmmm PTC

    Hi Wilko, I thought the same as you about the sofa "I thought if the company bought it for her the benefit was the £6000 the company paid???"

    But, I don't think the question was very clear!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Hmmm PTC

    i calculated it as 20% as a benefit of £6000, or 5% using the loan. I recommended the one which was £300 benefit, cant remember now and cant even look at a caluculator right now...! i think it was in her favour to do the loan.

    Also, on the tax return form, what the heck was the womans second name?? I know its not really important, but did I miss something here??????
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Hmmm PTC
    Wilko wrote:
    Hello guys.

    I just read that you were supposed ot extend the basic rate income tax band by the grossed up pension contribution(£300) i think, but when calculating the employment income were you just supposed to take off the net amout of i think £265?

    Also don't suppose anyone else got the 1985 pool gain to something like 7004.99? Coz i reckon mine was wrong! Think i messed up when you had to index twice upto Jan 95.

    One last thing, the question about the company buying the sofa or loning the money, did people put to loan the money, i did, i also metioned that if she made a capital repayment during the year to reduce the loan to less than £5000 then there was no taxable benefit, althpugh i think that might be wrong!

    How did everyone esle find it?

    also i didnt know anything about share pools pre 85. i have absolutely no idea where my tax book is and i DONT CARE!!!

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