Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › F6 intro
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- May 3, 2016 at 6:03 pm #313556
Hello sir,
Ive just started revision phase of F6.
Could you tell me please, how can we understand whether it is an INDIVIDUAL or a COMPANY is given? E.g. it says Sole trader, but sole trader can be the company and individual as well. One person and it is a company, am i wrong?May 4, 2016 at 7:21 am #313618You are wrong! A sole trader is NOT a company!! Sole traders and partnerships are unincorporated trades and subject to income tax.
May 5, 2016 at 2:53 pm #313831what about self-employed? is that a company?
May 5, 2016 at 4:37 pm #313839Self-employed and sole trader are one and the same thing
Companies are incorporated with self indentity different from owners (shareholders)
May 7, 2016 at 11:40 pm #314062Q2. Why 250 pounds included into Accountancy fees in respect of capital gains computation is commented as ”for private/persinal tax”?? and so disallowed. Comment please.
May 7, 2016 at 11:42 pm #314063Q3. n) “interest paid on overdue tax is not deductible and interest received on overpaid tax is not taxable.” Could you explain this please.
May 9, 2016 at 3:52 am #314214Q4: We use balancing allowance/charge only in case when we dispose the motor car for less then cost (because if we hadn’t disposed it we could get relief for whole amount of cost), right?
Explain, sir, please.May 9, 2016 at 6:03 pm #314305up
May 9, 2016 at 8:30 pm #314335Q.2 An expense incurred in calculating your personal tax cost is NOT an expense incurred in either buying or selling the asset – it is the result of having made the gain that tax then needs to be computed
Q.3 This is simply as it states – the individual does not get a deduction from taxable income for any interest charged on overdue tax and equally any interest paid to the taxpayer on overpaid tax is not then treated as taxable income of the taxpayer
Q.4 A balancing adjustment is only computed on the sale of a car when it is a non pool asset ie where it has private use by the proprietor and is the difference between the sale proceeds of the car and its tax wdv, restricted to the business use percentage thereof.
May 11, 2016 at 6:03 am #314527thanks a lot sir! But i dont quite understand the Q2. Could make it more clearer please? or will I encounter it somewhere in future lectures?
May 15, 2016 at 5:28 pm #315200It is the general rule that private / personal expenses are not allowable expenses for an individual in computing the assessment on the individual and calculating your PERSONAL tax liability is by its very nature a personal expense!
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