There are 3 processes to remember.
1. Automatic overseas (non resident) rules
2. Automatic resident rules
3. 4 substantive ties tests
Automatic overseas test is as follows
1. individual has spent less than 16 days in the UK
2. individual has spent less than 46 days in the UK and has not been resident in last 3 years
3. Individual has spent less…[Read more]
Large companies pay CT in 4 instalments month 7,10,13 and 16 after there year end
small companies pay 9 months 1 day after year end
large company is defined by its tax rate so 24% and small company 20%
IHT can be paid in 10 equal instalments 6 months after the month of death of the individual, this mainly relates to land and buildings and…[Read more]
RnD is considered a value adding activity along with advertising and staff training etc, As in the future these will all provide better revenue/profit/cost reduction etc
So RnD will be added back to NOPAT
Also do not worry if you get 1 item from EVA incorrect it will only be worth 0.5-1 mark
AIA I think you mean
or AE (Annual Exemption)
If you are talking about AE then the idea is that the individual realises a gain of no more than £10,600 which would of course be tax free OR there is a part disposal which will yield a gain of no more than £10,600 per year
IR35 is the legislation (law) that has been created by HMRC
PSC is a Personal Service Company, so the PSC is simply the vehicle which the worker uses to carry out their trade. (generally a ltd company, with 1 director who is also the only shareholder, very similar to a sole trader except they are operating inside a ltd company)
You add back the YEAR provisions to NOPAT
You can back the ENTIRE BALANCE SHEET VALUE to capital employed
Otherwise you can manipulate EVA by increasing or decreasing the provisions in the financial statements.
If you are inside IR35 you are considered a disguised employee.
If you are outside IR35 you are considered a limited company.
There are quite a few tests such as (below are a few)
1. Terms in the contract
2. Does the worker bring there own tools to work
3. Does the worker have control over their day to day duties.
4. Has the worker taken on…[Read more]
although note that this does not include fuel provided for the car by the company, if they company does provide fuel and the employee makes part payment this has no effect on the tax charge for using the car, only payment in FULL for the fuel will prevent a BIK from occuring
I think this is a niche area, I would challenge the question of it being endowment, in general any mortgage outstanding at the time of death will be included to reduce the asset value. From my experience this is not the greatest of questions and it is unlikely that the examiner will be looking to trip you up in such a way.
STICK to the knowledge…[Read more]
yes tax at 24% then deduct marginal relief.
Shortcut – tax up to lower limit at 20% then anything above lower limit but under higher limit (marginal) tax at 25%
the marginal tax rate is calculated at 24% less the marginal relief. using the long formula method
A short cut to this (ONLY WORKS at 24% main rate) is to calculate the tax rate up to the lower threshold at lower rate (20%) then calculate anything above lower rate threshold but lower than higher rate threshold at 25%
I think it is too late for a study session and as shah619 mentioned a revision session is more in line with the stage of exam prep.
Shah there is no way to remember everything, practising will be your best bet.
Here is a question to test your memory,
State 3 conditions for a house to qualify as a Furnished Holiday Letting (FHL)
Name 3 reliefs…[Read more]
Hi I think you need to be a bit clearer in your question….provisions is an example of the adjustment that will affect capital employed,
e.g. provision for bad debt for the year will need to be added back to NOPAT (only the year provision) and the entire (balance sheet value) provision will need to be added back to capital employed. EVA tends…[Read more]
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