[nikktoons]

Thank you so much.

[nikktoons]

Hi,

Please can you answer the following:

Q1. In computing a tax adjusted trading profit, when a trade debt is written off but luckily it gets paid back years later. Is it allowable or disallowable?

Q2. From the steps given, in computing the trading income for a company that has ceased operations, why is it necessary to calculate the penultimate trading income?

Q3. in the cash basis for small business, what happens when you sell a car and get proceeds from the sale?

Q4. Pension Income – calculating the AA, if your trading income is £250,000, and your occupational contribution for 2014/15, is £70,000, and you have previous total unused allowances of £30,000. Will you still be liable to an annual allowance charge in 2014/15? or the unused balance from pervious 3 years would have used up the balance £30,000 (£70,000 – £40,000)?

[nikktoons]

Hello,

Please when where in your income tax computation do you add child benefit tax charge? Is it after you compute taxable income or you add it to your income tax liability figure

[nikktoons]

Hi,

Q1. Is a Van categorised as ‘Machineries’ when computing Capital Allowance?

Q2. Under the calculation of capital allowance, how do you deal with disposals in the main, special rate pool and non-pool asset? do you deduct the proceeds from the disposal 1st from the total additions before you compute the WDA, or you compute the WDA of the total additions in the columns 1st, then deduct the proceeds.

[nikktoons]

Thank you.

Please I have a few questions:

Q1. What is the difference between a National Savings Bond and National Savings Certificate because it says the certificate is tax exempt while the bond is not.

Q2. Please confirm if I am correct, one of the qualifications of deductible interests are “interests from loan to purchase plant and machinery for business use by the employee”, then the cost of Plant and Machinery provided for business use will be treated as Capital Allowance. So, in computing the Net Income you deduct the interest on the loan while in computing the trading income you compute the capital allowance and deduct from the taxable trading profit. Am i correct or wrong?

Q3. Under Pension Contributions – the limit of £3,600, does that mean that an unemployed individual is allowed to contribute and gain tax relief up to the £3,600?

Q4. Under business expenditure in tax adjusted trading profit, it says “interest paid on borrowings for trading purposes is allowable” while “Reliefs, such as qualifying loan interest payments are not allowable”. What is the difference. It sounds the same to me

[nikktoons]

Hello,

Under Capital Allowance, If FYA is only available on new cars with Co2 emission up to 95g/km, what about a second hand car with Co2 emission less than 95g/km?

[nikktoons]

I am looking at the rates and allowances of a specimen June 2015 exam question paper and under the NIC limits, there is a ‘small earnings exemption limit’ of £5,885 which was not talked about in the open tuition NIC lecture. But from my understanding, it means that what ever the figure you get after calculating Class 2 contribution, £5,885 should be deducted and treated as tax free. Is that correct please?

[nikktoons]

Thank you very much.

I have some questions under property income:

Q1. I don’t understand the situation where the landlord has more than 1 FHLs in relation to the 105days rule

Q2. I don’t understand how it helps the taxpayer to claim to ignore the rent-a-room exemption

[nikktoons]

Good day,

I have some question under Pensions:

Q1. I don’t understand what it means by the ‘pension benefits vested’.

Q2. If the pension contribution is more than the tax payer’s earnings, what is the scenario if a) you have unused allowances, and b) you don’t have unused allowances?

Q3. Is the excess pension income charged to the income tax computation as Pension Income under the Non-Savings Income?

Thank you.

[nikktoons]

Please I have questions on the answers
1 (continued). Is it ignored when the employer reimburses exactly the amount owed to the employee? What about a case where the employer reimburses more or less and they have this dispensation, how will it work?

[nikktoons]

Thank you very much. I totally understand that now.

I have some questions on Benefits taxable on P11D employees.
Q1. I need more clarification on how the P11D dispensation works. If the employer reimburses the employee for travel, and the employee makes a claim to HMRC to treat it like an expense, does that mean that the expense is now treated as business related and therefore deducted? and when the dispensation is obtained, HMRC will automatically treat it as a relief?

Q2. Please explain what it means by “if the accommodation is job related, the taxable amount is restricted to a maximum of 10% of the employee’s net earnings”. I don’t understand the net earnings.

[nikktoons]

Thank you. I have listened to the lecture now. I was just reading my study text initially.

I have another question please. This time on gift-aid
Q. In an example on the open tuition lecture (example 17) where there was net income of £106,000 and gift aid of £4,800 (net). Because the Net Income was above £100,000, it was adjusted by deducting the gross gift aid amount, this gave a result of £100,000. therefore, the standard PA of £10,000 was used. My question is, after establishing the standard PA, on the income tax computation, why was the Net Income not changed to the ANI (from £106,000 to £100,000) before the PA was deducted to get the taxable income? Instead, it was (£106,000 – £10,000) as opposed to (£100,000 – £10,000). I hope my question is clear?

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