[alawi sayed]

Yi Jilly,

But if we consider the market value when first provided as that was more than 6 years from the first purchase of the accommodation

the

Annual value 2600
additional benefit=(245000-75000)2.25%=3825

so the total benefit =2600+3825=6425-3000(employee contribution250*12)
=3425

so it is the first option

but the model Answer is 0 because they say that the cost price is lower than 75000

which one I should stick with,

Thanks.

[alawi sayed]

Thanks.

[alawi sayed]

Thanks a lot.

[alawi sayed]

Thanks a lot.

[alawi sayed]

Hi,

I do watch the lectures
but sometimes either I miss to see the information or I don’t find it in the lecture,

Thanks

[alawi sayed]

Hi,

So when we say gross(salary or remuneration) here we assume that the NIC and personal and occupational pension schemes have already been deducted???

Thanks,

[alawi sayed]

Thanks a lot.

[alawi sayed]

Hi Jilly,
I am more concerned about part b

(a) Determine whether or not there will be an overall saving of tax and national insurance contributions (NIC) for the year ended 5 April 2024 if Sarah incorporates her business on 6 April 2023.

Thanks.

[alawi sayed]

Hi Jilly,

in this case how the quarters are distributed

usually we say Jan,Feb,Mar
Apr,May ,Jun
Jul,Aug,Sep
Oct,Nov,DEC

or every question can be in different quarters

like in this case starts from Sep???

Thanks.

[alawi sayed]

Hi Jilly,

its already there above,

(b) Advise Sarah as to why her proposed basis of extracting profits from the new limited company is not optimum for tax purposes, and suggest how the mix of director’s remuneration and dividends could therefore be improved.

Thanks

[alawi sayed]

Hi Jilly

It is Q32 in UK-tx specimen exam

Thanks

Q

The following scenario relates to two requirements. You should assume that today’s date is 1 March 2023. Sarah is currently self-employed. If she continues to trade on a self-employed basis, her total income tax liability and national insurance contributions (NIC) for the tax year 2023-24 will be £11,034. However, Sarah is considering incorporating her business on 6 April 2023. The forecast taxable total profits of the new limited company for the year ended 5 April 2024 will be £50,000 (before taking account of any director’s remuneration). Sarah will pay herself gross director’s remuneration of £30,000 and dividends of £10,000. The balance of profits will remain undrawn within the new company.

[alawi sayed]

Hi Jilly,

So here the use of furniture is separate from the living accommodation benefit??

Thanks,

[alawi sayed]

Okay ,Thanks a lot.

[alawi sayed]

Hi,

Okay I will watch it again.

Thanks,

[alawi sayed]

Hi Jilly,

For the gift into a discretionary trust on 19 February 2022 there was no exemption counted by you,

Thanks,

[alawi sayed]

Hi Jilly,

In the OT NOTES in Chapter 23 MCQ 1 in the lectures PART 4 I think by mistake you have calculated taxable amount without considering exemption of 3000,and 3000,

Thanks.

[alawi sayed]

Hi Jilly ,

Then why sometime we have to gross up the taxable amount before apply the tax rate

like in the model answer of this question
Lifetime IHT due (£475,000 x 20/80) (donor pays tax) 118,750

Why we have to gross up ?

Thanks

Explanation
£ £
Chargeable amount 800,000
NRB at date of gift (2023/24) 325,000
(325,000)
Taxable amount 475,000
Lifetime IHT due (£475,000 x 20/80) (donor pays tax) 118,750

[alawi sayed]

Hi JillY

So No need for taper relief here??

Thanks,

[alawi sayed]

Thanks.

[alawi sayed]

Thanks a lot.

[alawi sayed]

Thanks a lot.

[alawi sayed]

Thanks.

[alawi sayed]

Thanks

[alawi sayed]

Thanks.

[alawi sayed]

Thanks.

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