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Hi
In Q1 did anyone else add the R & D of £12,000 back onto the £55,000 to leave £67k TTP?? I based my calc on £67k per year for 2017/18, 2018/19, 2019/20, probably way off the mark. Felt the exam was worded poorly in places and v time pressured!!
It is very hard to know at times if you have done well, I ran out of time and ended up writing lines of nonsense near the end, it really is tough to manage that aspect.
For the 4 material misstatement risks I put NCA (IAS 16), Borrowing Costs (IAS23), Fin Inst (Hedging) (IFRS 9) and Inventory (IAS 2). Anyone else get anything similar??
Passed with 50%, might as well be 99% the way I feel, a huge relief to get that out of the way, congrats to everyone who passed and anyone who failed get back on the horse for June.
I had 50 as well Tarek, but I did have the negative $10m as well and changed it at the last minute, not sure which is right I think it may be the ($10m)!!!!
I have ran the numbers on Q1 (a) myself a few times and I keep getting 15k positive, in the exam I had £300k negative so I’m not sure, we will wait and see but @tallaghthoop is right the final answer shouldn’t matter a long as the method was followed correctly and logically.
For 1a npv question I had negative 306,000 (approx), did anyone else get close to this?
The PAYE system has been modernised by the introduction of real time reporting. The fundamentals of PAYE itself are unchanged, so employees are still issued with tax codes, and the employer is still responsible for deducting tax and national insurance contributions (NIC). The due dates for paying income tax and NIC to HM Revenue and Customs remain unchanged. However, with real time reporting, employers send income tax and NIC information to HM Revenue and Customs electronically every time employees are paid (either weekly or monthly) rather than waiting until after the end of the tax year as was previously the case.
Forms P35 and P14 are no longer required, since end of year information is included with the final real time submission for the tax year. However, form P60 must still be provided to employees following the end of the tax year. Form P45 has also been retained, and this is provided to a leaving employee.
Employers are charged a penalty if their final real time submission for a tax year is made late. The deadline is 19 May following the end of the tax year, and the penalty that can be imposed is £100 per month per 50 employees. For the tax year 2013–14 there are no penalties if submissions made during the tax year are late.
Since information must be filed electronically, it is no longer possible to produce a payroll manually. Employers must either run payroll software or use the services of a payroll provider.
Child benefit income tax charge
Where income is between £50,000 and £60,000, the charge is 1% of the amount of child benefit received for every £100 of income over £50,000.
For the tax year 2013–14 Cecil has a salary of £64,000. He received child benefit of £1,056 during the year.
Cecil’s adjusted net income of £64,000 exceeds £60,000, so the child benefit income tax charge is £1,056, being the amount of child benefit received.
Skip a generation
When making gifts either during lifetime or on death, it can be beneficial to skip a generation so that gifts are made to grandchildren rather than children. This avoids a further charge to IHT when the children die. Gifts will then only be taxed once before being inherited by the grandchildren, rather than twice.Of course such planning depends on the children already having sufficient assets for their financial needs.
Not sure if these are right but…….
Q1 – I had tax liability in around £68k and as the amount was over £60k the full £1.7k of child benefit would be reclaimed by HMRC. Fuel benefit is £21,100 x % x no. of mths/12.
Q2 – Difficult one with the loss in Road Ltd and thought the VAT was tricky enough.
Q3 – I had no issue with any of the calcs they were straight forward, but i thought the wording of the question was a bit vague, I didnt know if I had to take the ann allowance (£10,900) off each individual item, off at the end, not sure on that????
Q4 – Seemed too easy to be true so probably messed it up but for my inital calcs I used the £52k less pa for my tax and then made adjustments only when working out the cash basis.
Q5 – Again was not a strightforward IHT calc, I thought the question wording was misleading. ended up with £600k+ IHT payable.
Any thoughts anyone, I know we shouldn’t dissect papers after but it helps sometimes.
I had cash flow from ops of 3,400, investing (6,100) and financing 2,200 leading to (500) for the year, factor in the positive bank balance b/f of 300 and was left with (200).
My goodwill came out at £7,600 I think but I included contingent consideration as a current liability!!!
What did everyone think about the cash flow question 3, my calc worked out but not entirely sure everything was in correctly.
