OpenTuition.com Free Accountancy Education » All Posts http://opentuition.com/forum/ask-the-tutor-acca-f6-exams/feed Tue, 21 May 2013 16:05:55 +0000 http://bbpress.org/?v=2.3.2 en-US http://opentuition.com/topic/substantial-trader/#post-126509 <![CDATA[substantial trader]]> http://opentuition.com/topic/substantial-trader/#post-126509 Tue, 21 May 2013 14:26:32 +0000 shahbaz963 in bpp book the limit of substantial trader for VAT is 2,300,000 but in opentuition it’s 2,000,000 ……… guide plzzzzzz !!!!

]]> http://opentuition.com/topic/assessment-of-period-and-capital-allowances/#post-126384 <![CDATA[Reply To: assessment of period and capital allowances]]> http://opentuition.com/topic/assessment-of-period-and-capital-allowances/#post-126384 Mon, 20 May 2013 22:37:12 +0000 Tax Tutor The adjustment of profits and the capital allowances computation are prepared for the traders accounting period. We then deduct the capital allowances from the adjusted profit and this tax adjusted trading profit is then used to determine the assessment for the relevant tax years using the relevant bases of assessment. We do not prepare CA comps for tax years we prepare them for the accounting period of the trader!

]]> http://opentuition.com/topic/chargeable-gains-disposal-of-shares/#post-126382 <![CDATA[Reply To: Chargeable gains – Disposal of shares]]> http://opentuition.com/topic/chargeable-gains-disposal-of-shares/#post-126382 Mon, 20 May 2013 22:29:34 +0000 Tax Tutor Shares acquired = 15,000 + (1 for 3 rights = 5,000) = 20,000 shares
Cost = 12,600 + (5,000 x 2.20 = 11,000) = £23,600
Therefore cost from pool of 16,000 shares sold = 16,000 / 20,000 x £23,600 = £18,880

]]> http://opentuition.com/topic/interest-on-a-loan-to-purchase-the-property/#post-126379 <![CDATA[Reply To: Interest on a loan to purchase the property]]> http://opentuition.com/topic/interest-on-a-loan-to-purchase-the-property/#post-126379 Mon, 20 May 2013 22:16:28 +0000 Tax Tutor You are mixing up the corporation tax and income tax rules! When a company pays interest on a non trading loan, such as on a rental property the interest payable is indeed deducted under the loan relationship rules from interest income. If an individual pays interest on a loan taken out to purchase a rental property this will instead be deducted from rental income!

]]> http://opentuition.com/topic/nics/#post-126377 <![CDATA[Reply To: NIC's]]> http://opentuition.com/topic/nics/#post-126377 Mon, 20 May 2013 22:09:28 +0000 Tax Tutor The BPP question is stating correctly that the employer is “responsible” for actually paying over the NIC’s that they the employer must pay (employer / secondary contributions) and it is also their responsibility to pay over the employee NIC’s that they have collected at source along with PAYE from the employee’s salary.

]]> http://opentuition.com/topic/base-cost-chargeable-gains/#post-126376 <![CDATA[Reply To: Base cost – Chargeable gains]]> http://opentuition.com/topic/base-cost-chargeable-gains/#post-126376 Mon, 20 May 2013 22:02:06 +0000 Tax Tutor The term is sometimes used to describe the allowable cost to deduct from the net proceeds of the asset

]]> http://opentuition.com/topic/dividend-received-to-companies-by-connected-companies/#post-126375 <![CDATA[Reply To: Dividend received to companies by connected companies]]> http://opentuition.com/topic/dividend-received-to-companies-by-connected-companies/#post-126375 Mon, 20 May 2013 21:59:39 +0000 Tax Tutor If you mean dividends received from associated companies ie subsidiaries these like all dividends are exempt corporation tax and are also not included as FII. Do not recognise term “finishers”?

]]> http://opentuition.com/topic/assessment-of-period-and-capital-allowances/#post-126208 <![CDATA[assessment of period and capital allowances]]> http://opentuition.com/topic/assessment-of-period-and-capital-allowances/#post-126208 Mon, 20 May 2013 09:49:13 +0000 ban123 Hi, in the BPP book, there is an example for sole trader and short period calculation for WDA/AIA

O. commenced trading on 01/06/2012 made up first account 31/12/2013 and invested into capital assets, I answered the question splitting up the period as it was set out in the assessment chapter like this:
year one 01/06/2012 – 05/04/2013 WDA/AIA apportionment = 10/12
year two 01/01/2013 – 31/12/2013 WDA/AIA apportionment =12/12
is the WDA/AIA calculation independent of the assessible periods?

the book calculated the WDA/AIA apportionment as 18/12, so he has one allowance figure, but where does that go into? year 1 or year 2?
Thanks

]]> http://opentuition.com/topic/lectures-12/#post-126142 <![CDATA[Reply To: Lectures]]> http://opentuition.com/topic/lectures-12/#post-126142 Sun, 19 May 2013 21:32:05 +0000 opentuition_team something hopefully will be added on Monday

]]> http://opentuition.com/topic/lectures-12/#post-126138 <![CDATA[Lectures]]> http://opentuition.com/topic/lectures-12/#post-126138 Sun, 19 May 2013 19:57:14 +0000 bindugorasia Hi,
I was just wondering if all the lectures have been uploaded, or are there still more to come?

Thanks

]]> http://opentuition.com/topic/chargeable-gains-disposal-of-shares/#post-126113 <![CDATA[Chargeable gains – Disposal of shares]]> http://opentuition.com/topic/chargeable-gains-disposal-of-shares/#post-126113 Sun, 19 May 2013 16:25:15 +0000 atab Hi,

I am working out ‘Problematic Ltd’ from June 2010. Regarding note 1 disposal of shares, it states the following:
- 14 June 2012 16,000 £1 shares were sold for £54,400
- Originally purchased 15,000 shares on 26 June 2005 for £12,600
- On 28 September 2008 a 1 for 3 rights issue was taken up paying £2.20 for each new share issued
- The RPIs are June 2005 192.2, September 2008 218.4, June 2012 242.3

I used the three column proforma for the pool with number of shares, cost and indexed cost.

I first inputted the purchase on 26 June 2005 and then indexed to September 2008. Then there was the rights issue on 28 September 2008 and indexed again to June 2012. After this there was the sale..

What I cannot understand is why the cost of £18,880 was used for the sale of 16,000 shares. Could you kindly explain how to arrive to this figure please?

Sorry for bombarding you with questions but I seem to be coming across a lot of problems this weekend :( and you have been very helpful.

Thanks!

]]> http://opentuition.com/topic/interest-on-a-loan-to-purchase-the-property/#post-126085 <![CDATA[Interest on a loan to purchase the property]]> http://opentuition.com/topic/interest-on-a-loan-to-purchase-the-property/#post-126085 Sun, 19 May 2013 11:52:57 +0000 atab Hi,

According to the notes interest on a loan to purchase the property is an allowable deduction when calculating property business profit. However, according to the question in June 2010 Mice Ltd, it states that interest paid in respect of a loan to purchase property is set off under the loan relationship rules and is not deducted as an expense from property income. Which is correct please?

Thanks!

]]> http://opentuition.com/topic/depreciating-asset-in-rollover-or-holdover-relief/#post-126069 <![CDATA[Reply To: depreciating asset in rollover or holdover relief]]> http://opentuition.com/topic/depreciating-asset-in-rollover-or-holdover-relief/#post-126069 Sun, 19 May 2013 09:43:06 +0000 ban123 Hi – never mind : ) – wrong question

]]> http://opentuition.com/topic/nics/#post-126051 <![CDATA[Reply To: NIC's]]> http://opentuition.com/topic/nics/#post-126051 Sun, 19 May 2013 09:09:54 +0000 atab Class 1 NIC is paid by employee on cash earnings between £7,605 and £42,475 at the rate of 12% and anything above at the rate of 2% with no limit. These are payable when the employee is aged 16 and cease when the employee reaches 60 (women) and 65 (men).

Class 1 NIC is also paid by the employer on cash earnings above 7,488 at the rate of 13.8%. These are payable from employees 16th birthday but with no upper age limit.

Class 1A is then paid by the employer on taxable benefits provided to the employee at a rate of 13.8% of the value of the benefits.

]]> http://opentuition.com/topic/nics/#post-126029 <![CDATA[NIC's]]> http://opentuition.com/topic/nics/#post-126029 Sun, 19 May 2013 08:01:25 +0000 threepinplug Under any circumstance, does the class 1 NIC primary become payable by the employer and not the employee??
Answer to Question 18(Flick Pick) in BPP Revision kit states that the employer is responsible for paying both class 1 primary and secondary NIC.
Please help!!

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