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Thts correct in respect to small or marginal company.
For large company they pay quaterly …its 7th month from end of period then 10th, 13th, 16th.
QCD and PA both are deductible from total income…in other words we donot pay any tax on them
So whts the point in utilising such income. Its better to utilise the loss …where we are being charged tax …..and by the use of loss …we reduce the tax liability .
I hope it helps
As a person …I would like to save tax….so I would select the method giving less benefit amount.
And as hmrc ….I would like to get more tax ….so I would select the method which gives more benefit amount.
In exam u need to calculated via both the methods and select the one which gives less amount if the tax payer is doing the self assessment. ( my opinion)
Hmrc will only interfere which the difference is big….or else nt….
A: Gift to customer (food, drink , etc) : not deductible from trading profit. therefore we add that back.
B: gift to customers(non food items like pens, tshirt etc having name on it only…specially for advertisement) upto 50 pounds are the only ones allowed to be deducted from trading profit. if advertisement gifts are more than 50 pounds …non deductible….add back the whole amount
eg: gift of food hampers to customer, costing £25 each ……not allowed as food = £250
gift of pens having name of the company to customers , costing £50….alllowed = £500
gift of pens having name of the company to customers , costing £60….not alllowed = £600 …add back whole amount of 600 to net trading profit…i hope this was helpful.
read again the rules for getting tax adjusted profit.
Sorry….one more point…. goods which display names/ for advertisement are only taken for 50 pound criteria.
1. Are they food, drink, etc?
2. Is the cost more than 50.
3. If less than 50. …..exempt
4. If more than 50 ……include the entire amount.Simple tc
The main rule in respect to entrepreneur relief is the person should be holding at least 5% of the total shareholding in the company as well as he should be the owner or employee for the last 12 mnths for disposal.
Cherry isn’t a employee. Thts y no e-relief.
Ani limit is 26100 for higher personal allowance ….when a person is born before 1948
Hi Sharfin…u are rgt personal allowance would be reduced but ut would be reduced upto 9440. It can only be further reduced if the ani is more than 100000.
No adjustment in income tax computation. No relief available for such charity or donation.
Charity or donation to local charity which is small is a allowable deduction while calculating tax adjusted trading profit..
Tc
As per my knowledge.
If am wrong ….pls do correct meQ:3 Philip Wind: Personal allowance should be 9440.
Q:14 Samantha Fabrique: Capital Loss – carry forward relief (2014/15) is restricted upto the extent of Annual exemption allowance(10900). therefore 300 loss would be further carry forwarded .
ys u do pro rata wda on main pool and special pool for individual as per period of accounts and nt as acquisition date.
Everything is so confusing in this answer. Y did they use 323000. Secondly it states remaining 323000 less 6000. Y either its remaining or they used 6000 twice. Y?
Ya even I got confused….how can he use NRB again….he has already exaushted the NRB.
