[haider]

This paper was way too hard. 100% re-take but if September that hard I will quite acca altogether

[haider]

Q2

2) MV Cost

Cash 6.5*100000 65000 19500 shares 4.5*10000 45000 13500
Total 110000 33000

CG Proceeds 65000
Cost (19500)
Gain 45500
AS it cash will be Taxed immediately

[haider]

@se3addick said:
Can anyone help with question 3, even now looking at the exam again I’m still not sure how to approach this one.

I was working through the BPP revision kit, and don’t recall seeing any questions like this so it threw me somewhat in the exam.

I think q3 is quite straightforward, you need to compare what tax is being paying as self-employed to becomes limited. it all mentioned in question itself,

since self-employed tax worked for you, you all need limited tax liabilities .

1 Corporation tax at 20% (100000*0.20)=£20000
2-Income tax(180000-10000pa)=8000*0.20=£1600
3-NIC class 1 pre employee 18000-7865*0.12=£1216
4-NIC class 1 sec employer 18000-7865*0.138=£1398
5-Dividens 31865*0.10=3186.5
8135*0.325=2643
Then you add them up and compare them to self-employed figure and state which one is more beneficial to taxpayer.

I hope this will give you an idea

[haider]

I think q3 is quite straightforward, you need to compare what tax is being paying as self-employed to becomes limited. it all mentioned in question itself,

since self-employed tax worked for you, you all need limited tax liabilities .

1 Corporation tax at 20% (100000*0.20)=£20000
2-Income tax(180000-10000pa)=8000*0.20=£1600
3-NIC class 1 pre employee 18000-7865*0.12=£1216
4-NIC class 1 sec employer 18000-7865*0.138=£1398
5-Dividens 31865*0.10=3186.5
8135*0.325=2643
Then you add them up and compare them to self-employed figure and state which one is more beneficial to taxpayer.

I hope this will give you an idea

[Author]

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