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Separate it into:
1) INDIVIDUAL TAX
2) CGT AND IHT
3) CORPORATION TAX
4) VAT
5) MISCELLANEOUSCGT, IHT and CT are related in terms of the way you calculate things and the way you have to think.
VAT is straight forward. Just need to bang out the questions over and over again
Individual tax is quite dense but once you go through it the rest will make more sense in terms of formatting your answers and the way you understand questions.
@xolile said:
Haha Mr Morpheus, i remember you saying you were in ‘unload mode’ when you were answering some of the questions. CongratulationsLOL
‘Unload mode’ is necessary for ACCA exams.
I’m done with this phase of my life.
Just need to finish up the performance objectives then I’m an ACCA member 😀
I got 76% on the first attempt and I self study. I only answered around 80% of the exam.
My advice for anyone doing P6 is go through any questions you can get your hands on. I used the BPP study book and revision book. I did all the questions over and over and over again until the tax advisor way of thinking become second nature. When I went into the exam and saw the questions I just wrote like a possessed person. I unloaded all my knowledge. I had to use 3 answer booklets because I unleashed all that I knew in the exam.
SHHHHHHHHHHHHHHHHHHHHHHH*T
Q4 was a long period of accounts!!!
What a flop lmao!!!
I thought I was smart because I didn’t get tricked by the year end 30/04/16 being in 16/17 and not 15/16 lmao
I must have got like 3 out of 20 in Q4 🙁
I need to get 80% of the rest right to get a 60+ mark 😀
Fingers crossed
@nickinackynoo1 said:
How does everyone remember the exam? I literally erase it from my brain the minute I leave the exam hall! haha!Q3 part d(?) I got the group payment arrangements mixed up with installments, I did mention that refunds can be offset against payments saving cash, hopefully got half a mark for that!
I knew nothing about R&D tax relief, I racked my brains but couldn’t think of anything to say! 6 marks gone straight away!
Was Q2 part b(?) about CGT only? As I said it would be better to dispose of the boat now and possibly make use of the losses from the painting, but you would waste the AEA.
I was in ‘unload’ mode when I was answering these questions.
Q3 d) I just went to the general, cash flow benefit, administrative benefits…
R&D is a give away.
Q2 b) omg I forgot this question!!!! How many marks was it? I talked a load of crap. I just said the benefits and drawbacks of doing one thing and doing another.
It’s difficult to tell if I have passed lmao
@chris165 said:
You need 3 seperate calculations imoUnincorporated:
Trading profits/ total income 55000
Less PA 10600
Subject to Income Tax 44400
Class 2 NIC 2.80*52
Class 4 NIC on 55000-8060@9% + remainder at 2%
Then post tax income is 55000 – IT – Class 2 NIC – Class 4 NICIncorporated:
First work out gross dividend by reverse engineering IT computation
Desired taxable income = BRB threshold = 31785
Add PA 10600
Less Salary 24000
So gross dividend = 18385Then post tax income = 24000 – IT – Class 1 e’ee NIC + dividend (0% effective rate as BR taxpayer)
Can compare two figures here but important to realise that there is retained profits in the company which can be withdrawn as dividends at effective rate of 0% once his trading profits fall to £30000 after 31 Mar 2020.
Delayed distribution calculation
Company TTP 55000
Less salary 24000
Less E’er NIC on salary ((24000-8112)*13.8% – 2000 allowance)
This leaves an amount assessable for CT
Less CT @20%
Less dividend payed out as calculated above (remembering dividends are payed out of post tax profits)
This leave retained profits which can be paid out at a 0% effective rate after 31 Mar 2020 as a ‘delayed distribution’I did this.
I better get 17/17 lol
@rupaljignesh said:
I’ve worked hard spent more than 700 hours studied P6 in length, gain the knowledge in the majority of syllabus areas practiced questions from revision kit for more than three times but am afraid I won’t pass this last paper, it’s a horrible feeling to write and explain in this forum but still trying to search an answer from within that what I’ve done wrong in preparation?, would I be able to pass this last paper ever? or should I leave the study here as couldn’t work hard more than I did and happy to be called as Part Qualified for the rest of the life.In the examination hall everything went blur couldn’t understand what questions were asking, panic started and one knows that one is seating there for the sake of passing time.
Congratulations for the students who done well in this exam and wish them good luck for the results.
It depends on how well you apply your knowledge to the question.
I would recommend finding as many questions on P6 as possible and keep doing them over and over again.
I don’t know if I passed but I know that what I answered should be 80% right. So if I answered 80% of the paper and got 80% correct, that is 64%.
It’s all about application. You need to think like a tax advisor.
What I do to understand the question is go through the case study and highlight key points and right little notes so I can get a clearer view of how everything links together.
@blue24 said:
Q1 was really confusing, I left it until last and feel like i rushed through it.Did you have to calculate his after tax income if he was a sole trader or if he was incorporated and the difference between the two?
That’s what i did but stupidly forgot to include any NIC!!
I thought the rest of the paper wasn’t too bad, really hoping i’ve done enough it’s my last paper and this is the 4th time i’ve done it!!
Yes. Post tax income for the three years ending 31 March 2020.
Obviously NI should have been included (class 2 and 4 for the sole trader and class 1 employer and employee in the incorporated business)
@usamaniaz said:
who understood Q1 part A? like what exactly had to be done there.
that was so vague.You just had to compare post tax income’s of trading as a sole trader or as an incorporated business for the 3 years of the new contract.
55000 was the trading profit for the sole trader and the tax adjusted trading profit for the limited company. That’s all they were saying but they say it in such a deceptive way.
So you base all your workings around that figure basically.
THe sole trader has class 2 and 4 ni to pay on the trading profit plus Income tax.
The incorporated business has income tax to pay on the salary and then you need to find out how much dividends you need to reach the BR threshold which means you have to adjust the £55000 and take account of the salary, the class 1 employer’s NI (including the employer’s allowance) and class 1 employee NI. Find the profit after tax figure then pay out dividends net. Then you left with retained profit which is paid out in the same way which means there is no net tax effect on the dividends remaining which means you add it to the post tax income.
I think this is right.
I think I should get at least 14/17 for that question otherwise it’s rigged
@xolile said:
I think the paper was fair but was really time pressured. I could have done with an extra 30 mins. Q1 was easy but far too lengthy. The question did say to ignore the R&D expenditure in part 1a. I used 55000 as the adjusted profit for both the company and sole trader. I then deducted the salary and employers ni (less ni allowance) from the company profit and calculated 20% tax on this, the after tax profit would be dividend distributions to Duncan which i grossed up. Not sure if this is correct, but I had to restrict some of the dividend so that he would remain in the basic rate band. Spent far too much time on this question that I had to rush through the other questions.Did anyone make any adjustments to the building in Q4 under the capital good scheme? Just hoping that I have done enough to scrape a pass.
I did exactly what you did for Q1. It felt to straightforward but it made sense so I did it. Then when it asked about including the effect of R&D in part b) I just deducted 130% from the profit before tax then there were more dividends remaining and therefore a high post tax income when Duncan incorporated.
I just wrote any bs in Q4. I rushed that.
It’s all about application.
The question’s are always put in a stupid annoying way.
The first Q was about sole trader’s vs incorporated companies and finding the post tax income.
The R & D explanation and application.
The other matters were the incorporation relief and some other stuff…i can’t remember.
The rest was a blur for me. I overran on Q1. I just started blasting out answers for the questions. No time to dilly dally.
64% on the first attempt!!! When I saw he question about purchasing a real estate company, I knew I would pass.
This is all common sense and all about day to day business knowledge. Just understand how to apply the models to the case study and understand business in general and you will pass this.
The easiest one so far.
next P4 or P6 hehe
Yes. I’m about to do it for the first time this December and if you remember the models, practice the questions and apply the generic definitions and models to the case study. This not only gives you more marks but it enables you to think about answers for the question especially in the 50 mark question.
The other questions will be on Chapters 7 to 13, I think. I did bother with HRM and Strategic management. Project management will probably come. E-business/marketing.
I find Ch 7 & 8 quite annoying.
Ch 1 to 6 and Ch 11 to 13 are straightforward once you practice.
I am going to aim to get 40 marks in Section A that way I can definitely pass. If I am optimistic then I should get 80 marks in this paper. It’s quite enjoyable to analyse companies and use common sense + models to solve problems or analyse companies. It’s a pleasant change from the rigidity of balance sheets and Comprehensive Income Statements lol
I started revision in September for the December exam so 3 months ish..everyday 2 hours after work and 4 hours on the weekends extra days off before the exam should do the trick.
Good luck with P2!!!
Do Section A first. Read the question before you read the case study so you know what to look for. Speed read through it and mark any areas that might be useful like strengths or weaknesses, opportunities or threats based on PESTEL etc etc…This way you won’t have to keep going over the massive case study.
Also, Q1 is probably SWOT based so that’s basic.
The other Q’s in Section A will require some recollection of more specific knowledge especially c). You need more time on those q’s than the SWOT or strategic option Q’s.
I feel confident for P3. P1 and P2 were worse. P3 seems like it is common sense mixed with knowledge here and there.
Im not going to be tied up with Section A. Most of the case study is waffle haha. get what you need and move on. Leave space to elaborate further if something click during other parts of the paper.
I’m more focused on the question verbs. I need to master that so I know how specific or detailed the answer needs to be. The difference between evaluate and identify and explain etc etc. Evaluate is just say what is there. Evaluate the strategic option. This option is market development blah blah. requires this and that. benefits are this and that. Suitable Acceptable Feasible done lol Or strategic clock. no frills means cost leadership focus to gain competitive advantage. require this and that. benefits are this and that.
You get in a rhythm then when you go to the exam it’s flows out of you. I love the feeling of opening the page and seeing how many areas I can get marks in. Makes me feel so good. I just let it out. ahhhh
Use porters five forces. Why make life difficult for yourself. If the question asks you to assess a nations competitive advantage then use Porters Diamond but that will be rare I think.
Got 63%. Didn’t expect it.
Answer what you know to the best level you can.
Answer what you don’t know with all the information you can. lol aka information unload
@puritee said:
Question 3Section a was on operating segments. Two segments. I firstly explained operating segment, reporting segment, 10% rule, 75% rule, aggregation rule and then applied it to scenario.
Lab 1 I thought was not an operating segment as revenues were not earned independently and chief operating decision maker did not review performance and allocate resources.
Lab 2 was a reportable segment. I explained how it met the criteria.Yes. I did the same. The rest of Q3 is bs
I got that too 🙂
@dontetze said:
I didn’t calculate EPS, i did like this:P/E=19
hence earnings is given calculate total market capitalizationP/3.6 =19
P= 19×3.6
p=68.4hence NCI will be 20%of 68.4
NCI = 13.68This is what I got.
As usual, this exam is difficult because the wording of the question is hard to understand so you have to read it 5 times to figure out what to do.
You get the earnings per share and work out the price per share. That threw me off because they gave the P/E ratio for both subsidiaries.
the share of associate profit is included in the group reserves
the impaiment loss…i don’t understand why it isn’t