Personal age allowances

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  1. Avatar of jahara420 jahara420 says:
    January 26, 2013 at 7:53 pm

    hi adim, i m rely thanxful , for all team , GOD bless u all may u all live looooooooooong. Ameen, sir actuly i wanna ask u a question, i m not going to college i have no money for that all i m doinng studing on my own and getting help from Opeentuition, can i pass my exams to just rely on this plzzzzzzzzzz,????????????

    i mwaiting for ur reply

  2. Avatar of jahara420 jahara420 says:
    January 5, 2013 at 4:26 pm

    i m realy thankful to whole team , i had no money to pay my college and ilost my every last hope for ACCA , but when my friend told me about opentuition, i jumped from earth to sky , i can describe my happiness in words, and when i see, leactures ,i realy fell in love with all teachers,,, i just wanna say to all of them GODrealy loves u thats way he making u do this,and i m his humble man, realy respect u all as a do my parents,,,, billions and trillions blessings on all of u, ,,,,,,,,,,,,,,

  3. Avatar of zlip792 zlip792 says:
    November 20, 2012 at 10:23 pm

    Whats the income tax liability of example 14 of question elliot?

    Can anyone please give quick answer?

  4. Avatar of akhim akhim says:
    September 17, 2012 at 2:24 pm

    I have problem with material, pls help.

  5. Avatar of prit prit says:
    June 2, 2012 at 12:06 pm

    I cannot see eg. 9 please someone help.
    I have calculated the following please tell me if it is correct.
    Personal Allowance Nil as Net Adj.Income is more then 114950.
    and tax is

    N.S-35000*20% = 7000
    95000*40% = 38000
    S- 20000*40% = 8000
    20000*50% = 10000
    Div- 35000*10% = 3500
    1000*20% = 200
    Total tax liabilty = 66700
    less:tax credit = (8000)
    (3600)
    Tax payable =55100

    Please reply me asap
    Thank you :)

  6. Avatar of rc32 rc32 says:
    June 1, 2012 at 8:42 am

    Hi
    Why don’t you calculate the adjusted net income in example 14?
    Should not we deduct gift aid donation from total/net income?
    Thanks

    • Avatar of crye crye says:
      June 4, 2012 at 4:00 pm

      @rc32, A.N.I only comes into play as a test to see if a restriction of PA would be necessary. If you’ve done Corporation Tax, you can recall the test using Dividend income just to establish the tax rate. Similar here, where Gift Aid donation (and Personal Pension Contr) doesn’t come into the face of the IT computation but run in the ‘background’.
      As for A.N.I, there are 2 cases one should look out for…

      1) PA (Standard) …. if the taxpayer’s ANI >100,000, we’ll halve the EXCESS of the ANI over 100,000 and then subtract the result from the standard PA (to reduce it) to get a revised PA, subject to a minimum of NIL. BUT …
      In Ex. 14, ANI >100,000 is NOT the case, so it’s needless to work out the ANI. Elliot’s Total income, i.e, even before gift aid payment, is 24,000, we’ll halve the excess of the ANI over 24,000 and then subtract the result from the standard PAA (to reduce it) to get a revised PAA, subject to a minimum of, unlike in case 1) above, the standard PA (7475 for this tax year). Also, if his ANI >100,000, there’d be a further reduction on his PAA, and starting with the ALREADY restricted PAA (7475 here), we’ll halve the excess of the ANI over 100,000 and subtract the result from the standard PAA (to reduce it) to get a revised PAA, subject to a minimum, now, of NIL (HMRC don’t care about his age now since he’s already too rich — also don’t forget that in any case, no matter age, if ANI (this year)>/=114,950, NO PA is available!!).
      Again, Elliot is assumed YOUNG, so we don’t need to test with ANI (if >24,000 or >100,000). Hence you noticed no ANI was calculated.

      You can use 1) and 2) above in any case of Personal allowances… First, look for the age. Second, if/not necessary (as illustrated above), calculate ANI using net income figure and gross Gift aid and Personal pension payments …… finally, test with thebcalculated ANI figure if >24,000 or >100,000 …. of course have other guides at the back of your mind like the reduction limits, further reduction of PAA being from the standard (restricted) PA and the overall threshold where no PA is available etc

      Always assume youth if no reference to age is given.

      LUCK

    • Avatar of crye crye says:
      June 4, 2012 at 4:34 pm

      @rc32, @rc32,

      SORRY … PLEASE IGNORE THE FIRST REPLY ABOVE!!!!

      If you can digest the following, you’ll quickly understand when or when not to even bother about calculating ANI in the first place.

      A.N.I only comes into play as a TEST to see if a restriction of PA would be necessary. If you’ve done Corporation Tax, you can recall the test using Dividend income which is just used to get F.I.I to be added to TTP to establish the tax rate [so TTP+FII = Aumented profits could be compared to: Net Income - Gift Aid donation - Personal Pension Contr =ANI ]. So as said, situation’s very similar here, where Gift Aid donation (and Personal Pension Contr) doesn’t come into the face of the IT computation but runs in the ‘background’. ANI runs in the background like ‘Augmented profits’ in CT.

      OK, I shouldn’t bore you to sleep. As for using A.N.I to revise PA’s, there are 2 cases one should look out for…

      1) PA (Standard) …. if the taxpayer’s ANI >100,000, we’ll halve the EXCESS of the ANI over 100,000 and then subtract the result from the standard PA (to reduce it) to get a revised PA, subject to a minimum of NIL. BUT …
      In Ex. 14, ANI >100,000 is NOT the case, so it’s needless to work out the ANI. Elliot’s Total income, i.e, even before gift aid payment, is only 48,000, way below 100,000.

      2) Age (PAA) …. if his ANI>24,000, we’ll halve the excess of the ANI over 24,000 and then subtract the result from the standard PAA (to reduce it) to get a revised PAA, subject to a minimum of, unlike in case 1) above, the standard PA (7475 for this tax year) – (restricted).
      Also, if his ANI >100,000, there’d be a further reduction on his PAA, and starting with the ALREADY restricted PAA (7,475 here), we’ll halve the excess of the ANI over 100,000 and subtract the result from the restricted PAA (to reduce it) to get a final revised PAA, subject to a minimum, now, of NIL (HMRC don’t care about his age at this point since he’s already too rich — also don’t forget that in any case, no matter age, if ANI (this year)>/=114,950, NO PA is available!!).

      So again, Elliot is assumed YOUNG, so we don’t need to test with ANI (i.e to see if ANI >24,000 or >100,000). Hence you noticed no ANI was calculated.

      GENERALLY, You can use 1) and 2) above in any consideration of Personal allowances…
      First, look for the age.
      Second, if/not necessary (as illustrated above), calculate ANI using net income figure (Total income less loss reliefs and qualifying int) and gross Gift aid and Personal pension payments ……
      Finally, test with the calculated ANI figure if >24,000 or/and >100,000 ….

      Of course you should have other guides at the back of your mind like the PA reduction limits, possible further reduction of PAA being from the standard (restricted) PA (NOT the standard PAA) and the overall threshold where no PA is available etc

      Always assume youth if no reference to age is given.

      LUCK

  7. Avatar of gemhorton gemhorton says:
    May 12, 2012 at 10:29 pm

    If anyone does not understand these lecturers… They either need to go and learn basic English or have some serious *m** issues! OT has helped me and thousand others out there who are not funded by their companies! Many thanks OT…. Can’t thank you enough ;-) .

    • Avatar of crye crye says:
      June 4, 2012 at 2:08 pm

      @gemhorton, ACCA is about professionalism/ethics and we’re naturally guided into following this. That’s why it’s hard to find people insulting others here. Being mouthy doesn’t get any job done or help those you’re talking about. Not everyone on here is a native speaker or something BTW. Come on!

  8. Avatar of kulgal16 kulgal16 says:
    May 1, 2012 at 1:28 am

    I think whatever this website provides is seriously amazing which requires great amount of work from recording and updating the lectures, to maintaining the website well, as well as the forums, chat rooms etc. I think everyone should be really thankful to whatever you are getting at your fingertips without having to pay a penny, and not only free, but atually ‘high quality lectures’ along with course notes etc etc. Everyone should just be thankful and praise the efforts of OT team.

  9. Avatar of cristina85 cristina85 says:
    April 27, 2012 at 8:48 am

    age allowance : http://www.accaglobal.com/content/dam/acca/global/PDF-students/2012/2012%20exam%20docs%20F6-P6.pdf

  10. Avatar of cristina85 cristina85 says:
    April 27, 2012 at 8:41 am

    Hi Admin, on the course notes the Age Allowance is 9940 and should be 9490.Please have a look.Regards

  11. Avatar of Sakib Sakib says:
    April 14, 2012 at 6:52 pm

    Why was the gross gift aid payment not used to determine adjusted net income for Elliot in example 14 ?

  12. Avatar of onyango onyango says:
    April 2, 2012 at 8:46 pm

    Unless this lecturer is not writing, it’s so boring to listen to his lectures and one has to do the rest by oneself. whatever software you guys used at Opentuition, it seems to be not working well. someone complained about it and i think I second the person on the matter. the lecturer is good but i feel like i’m listening to something like ‘BBC’ on my computer. Do something if possible.
    The former lecturer was better because she showed all her workings in writing.

    • Avatar of admin admin says:
      April 2, 2012 at 10:50 pm

      You are free not to listen to those lectures

      Try BPP or Kaplan

    • Avatar of crye crye says:
      June 4, 2012 at 2:18 pm

      @onyango, You have a good point BUT there are a million nice ways to send such a message across, especially as this is all free. I like both lecturers; they’re really intelligent people. But while giving credit to ‘the woman’ whom I think helps students relax while following, also remember this lecturer is very good at stepping off to touch implications (Like … Why we do this; otherwise this this that … remember we said this this that etc). He also often starts with a review of previous lessons, which is a very powerful way to help weak students. This should be encouraged!!! I think he just doesn’t write where, following a previous lesson or notes, the solution to a problem seems obvious. But he’d often write in introduction/illustration instances. Follow the lectures in order, and you’d hug me in agreement. LUCK… we take this F6 down come June!!!!

  13. Avatar of sardarrizwan sardarrizwan says:
    March 26, 2012 at 2:23 pm

    I am not able to see workings(just blank page)

  14. Avatar of admin admin says:
    March 25, 2012 at 12:16 pm

    reload the page, or try again later, video works fine,

  15. Avatar of gfraser gfraser says:
    March 25, 2012 at 10:12 am

    I am getting this message- Stream not found mp4:vod/acca.opentuitioncom/f6/ch2-5.mp4

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