[dimeroglev]

Thank you Mr. Moffat.

Sorry for starting a conversation in the wrong section.

Regards,

[dimeroglev]

Thank you for clarifying Mr. Moffat

[dimeroglev]

6. VAT default surcharge period

Quarter ended VAT paid Submitted: on time / late
30/Sep/2015 3100 late
31/Dec/2015 21300 late
31/Mar/2016 4300 on time
30/Jun/2016 7600 on time
30/Sep/2016 1900 on time
31/Dec/2016 3200 on time
31/Mar/2017 6900 late

1. Late for 30/Sep/15 = surcharge liability notice until 30/Sep/2016
2. Are there any other defaults in the surcharge liability period?
Yes = one (31/Dec/2015)
Penalty = 21300 x 2% = 426
Surcharge liability notice will be extended to 31/Dec/2016?
Penalty = 21300+

Question: If there were two defaults in the surcharge liability period :
31/Dec/2015 and 31/March/2016 the surcharge liability notice will be extended to 31/Dec/2016?
Penalty = (21300+4300) x 5% = 1280?

[dimeroglev]

few more short questoions:
1) Q 114 Ronald (pg 42 BPP Rev kit, Answer on page171)

Commenced self employment 1/1/2017 Trading Profit
1/1/2017 – 30/4/2017 = 3840
1/5/2017 – 30/4/2018 = 12060

CA Motor car CO2 = 142g/km, cost 18000 purchased 1/9/2017, 70% for private journeys
Trading profit 2017/18 = ?
in the Rev.Kit answer this is calculated as:
period ended 30 April 2017 = 3840
period ended 30 April 2018 = 12060
less CA(18000*8%*30%) = (432)
———–
11628
x 8/12 = 7752
——–
11592
So, time – apportioning 8/12 only refers to the CA(1/9/17-30/4/18)
Why is it calculated on the 12060 trading profit too, when commencement self employment is from 1/1/2017?
Shouldn’t we use opening years rules here?

2) Annual allowance for pension contributions

Adj. income employees = net income + pension cont. to occupational pension schemes by employee + pension cont. to occupational pension schemes by employer
The net income (for the purposes of the Adj. income calculation) doesn’t have to be from the Relevant earnings right (trading inc. emp. income, FHL income) ?

3) Entrepreneur’s relief (employee 12 months prior to disposal)
Q 139 Rev Kit BPP

Bon is director in Alphabet ltd since 1/Feb/2017. Alphabet ltd taken over by XYZ plc on 15/Oct/2017 (Bon received XYZ shares for his shares in Alphabet ltd)
March 2018 Bon made gift of 10000 shares in XYZplc to brother.

So, 1/Feb/2017 to 15/Oct/2017 (takeover) is less than 12 months and Bon was not an employee in Alphabet ltd for the requisite time before disposal.

The condition – employee 12 months prior to date of disposal, in this case, refers to the takeover date, right ? not the date (march 2018) when he gifted XYZ shares to brother..?

4) NRB 7 years cumulation period – page148 example 2 (notes from open tuition) (answer on page 210)

Step 3 Lifetime transfers chargeable on death
Available NRB = 325000 – 310000(CLT gross<7 years from PET) = 15000

Step 4 Estate
Available NRB = 325000 – 290000(PET gross<7 years from death) = 35000

Why do we use the NRB at death twice? for the estate the NRB should have been utilized in step 3…?

5) Mobile telephone cost 400 provided to employee
Taxable as employment income is 400 x 20% = 80 included in the taxable income computation. (q. 115 rev kit Wai)

Chauffeur 9400 provided to employee = 9400 included in the taxable income computation
Shouldn’t it be 9400 x 20% (use benefit) included in the taxable income computation?

[dimeroglev]

Thank you SO much for answering. I read elsewhere that you were balancing this with work so thanks again.

A couple short questions if you don’t mind: GBP

1. Q59 Rev Kit
Entertainment of staff (party at 300 per person for 6 employees) 1800
It says: fully deductible (the 150 limit applies to the taxable benefit for the employees)
why is this when the party is at 300 per person.shouldn’t this be added back?

2. Opening years loss relief (for individuals) against Total income in the preceding three tax years
Before applying loss relief on the previous three tax years on a FIFO basis, should we first apply current year loss relief (if Total income in current year is above the PA 11500?).

Thanks again, much appreciated !

[Author]

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