Forum Replies Created
- Posts
@huzaifa11 said:
For question 31 regarding Petula Employment income :1) Salary 230’000
2) Bonus (18600 + 22400) 41000
3) Car Millage (3000+5350) 8350
4) professional subscription (630)
Golf 05) personal loan (140)
6) Pension Contribution Exempt Benefit 0
7) Property (12000-420-1640) 9940
8) Room (8900-7500) 1400
9) Gilt interest 3000
——————————————————————————Total £292’920
b) Pension allowance is like the PA it is capped between income of £150k to £210k)
any income between that amount gets /2 and taken of the annual amount. income
above £210k then is capped to £10k.@huzaifa11 said:
For question 31 regarding Petula Employment income :1) Salary 230’000
2) Bonus (18600 + 22400) 41000
3) Car Millage (3000+5350) 8350
4) professional subscription (630)
Golf 05) personal loan (140)
6) Pension Contribution Exempt Benefit 0
7) Property (12000-420-1640) 9940
8) Room (8900-7500) 1400
9) Gilt interest 3000
——————————————————————————Total £292’920
b) Pension allowance is like the PA it is capped between income of £150k to £210k)
any income between that amount gets /2 and taken of the annual amount. income
above £210k then is capped to £10k.FOR 2, BONUS, I ADDED ALL THREE BONUSES BECAUSE IT IS SUPPOSED TO THE THE EARLIER OF DATE OF ENTITLEMENT OR DATE PAID, after looking at the dates, all were entitled or paid in that tax year so is dded all three bonuses
@huzaifa11 said:
For question 31 regarding Petula Employment income :1) Salary 230’000
2) Bonus (18600 + 22400) 41000
3) Car Millage (3000+5350) 8350
4) professional subscription (630)
Golf 05) personal loan (140)
6) Pension Contribution Exempt Benefit 0
7) Property (12000-420-1640) 9940
8) Room (8900-7500) 1400
9) Gilt interest 3000
——————————————————————————Total £292’920
b) Pension allowance is like the PA it is capped between income of £150k to £210k)
any income between that amount gets /2 and taken of the annual amount. income
above £210k then is capped to £10k.for 2, bonus, i added all three bonuses because we r supposed to select the earlier of “DATE OF ENTITLEMENT OR DATE OF PAYMENT”. i saw all were entitled or paid in that same period so i added all three confidently, lol..i hope i am right 🙂
@huzaifa11 said:
1 You should assume that today’s date is 15 December 2016.
Zhi has been self-employed since 2000, preparing accounts to 31 December. On 1 December 2016, Zhi purchased
a new freehold warehouse for £164,000 for use in his business, but this purchase has resulted in Zhi having cash
flow problems. He has various tax payments becoming due over the next two months, and would like to reduce or
postpone these payments as much as possible.
Income tax and national insurance contributions (NICs)
Zhi’s income tax liabilities and class 4 NICs for the tax years 2014–15, 2015–16 and 2016–17 are, or are forecast
to be:
2014–15 2015–16 2016–17
£ £ £
Income tax liability 25,200 27,600 18,000
Class 4 NICs 4,084 4,204 3,724
Zhi has not made any claims to reduce his payments on account.
Capital gains tax (CGT)
Zhi has a CGT liability of £12,980 becoming due for payment on 31 January 2017. This is in respect of a freehold
office building which was sold for £210,000 on 10 December 2015, resulting in a chargeable gain of £76,000. The
office building had always been used for business purposes by Zhi.
Zhi is a higher rate taxpayer. No claim has been made for rollover relief.
Value added tax (VAT)
Zhi has forecast that he will have to pay VAT of £20,200 on 7 February 2017 to HM Revenue and Customs (HMRC)
in respect of the VAT quarter ended 31 December 2016.
On 12 December 2016, Zhi despatched goods relating to an exceptionally large credit sale of standard rated goods
of £45,600 (inclusive of VAT). He has not yet issued a sales invoice for this sale.
Because the customer is unlikely to pay until 28 February 2017, Zhi is considering not issuing a sales invoice until
1 February 2017.
PAYE and NICs
Zhi will have to pay PAYE and NICs of £5,724 electronically on 22 January 2017 to HMRC in respect of his two
employees for the tax month running from 6 December 2016 to 5 January 2017.
This includes amounts for bonuses which Zhi was planning to pay to his two employees on 1 January 2017, but
could delay payment until 10 January 2017. The bonuses are in respect of the year ended 31 December 2016, and
they will be treated as being received on whichever is the date of payment.
The first employee has a gross annual salary of £20,000 and is to be paid a bonus of £1,500. The second employee
has a gross annual salary of £55,000 and is to be paid a bonus of £5,000.
6
Required:
(a) Calculate the amount by which Zhi can claim to reduce his self-assessment income tax and NICs due for
payment on 31 January 2017 without incurring interest or penalties. (2 marks)
(b) Calculate the amount by which Zhi’s CGT liability due for payment on 31 January 2017 will be reduced if
he makes a claim for rollover relief based on the warehouse purchased on 1 December 2016 for £164,000.
(3 marks)
(c) Explain whether Zhi can reduce the amount of VAT payable on 7 February 2017 by not issuing a sales
invoice for the credit sale of £45,600 until 1 February 2017, and, if so, by how much the payment will be
reduced. (2 marks)
(d) Calculate the amount by which Zhi’s PAYE and NICs due on 22 January 2017 will be reduced if he delays
the payment of employee bonuses until 10 January 2017, and state when the postponed amount will be
payable.
Note: Your calculations should be based on annual income tax and NIC thresholds.HEY< DO U HAV THE ANSWERS?
well, it was harder than the past papers which i used for practice.
qn1. Growth
Qn2. profit
Qn3. 300 adversesection B, what was the optimum output of necklaces? i got 450…does anyone remember their answer?
Because I thought there’s a Mistake in the text book as i mentioned that ” the answer that’s in the revision kit is given but i think there’s a mistake”. I thought the answer was supposed to be B while in the kit it was A.
Thank youA
Advertising and sales promotion may persuade customers to pay more for a product, and so may
make demand more inelastic in response to price changes. When demand is very inelastic with
regard to the sales price, elasticity may be increased to some extent by means of advertising and
sales promotion.This is the answer from the revision kit. while thought the answer was supposed to be B