TX*** ACCA Paper TX September 2019 Exam was.. Instant Poll and comments ***

The exam was okay, there were still a few trickier subjects. A lot of questions about penalties and also Incorporated vs Unincorporated trade questions. For the life of me I couldn't remember what NICs were paid on dividends! Here's hoping I did well enough and that everyone else has too!

Question 1a had so many different things to do, that I left a space and moved on and then went back to it and didn’t have enough space. I finished the paper but I’m pretty sure I wrote a load of rubbish for some parts. Was surprised to see a less numerical paper compared with the June 19 one

For the 10 mark question C question did people get the q of working out NIC payable for sole trader and if she opened a company. What did people do for this? Another question - For the car over 110g CO2 did you add back the monthly lease cost of £4k x 7 months and then add back 15% of this?

I had a VAT q regarding vat taxable output on the chaffeur ride and the hamper gift - How did people do this and what did they get?

I got the second question I only added back the 15% which is ((4000 x 7)x.15) And also got the chauffeur ride question, this was very confusing, was more like a quess for me

For the sole trader I worked out the Class 2 &4 payable and added the tax liability per the question. For the incorporated business I stated that due to the entire profit being withdrawn, no corporation tax was payable, but dividend is taxable instead in the income tax computation. Both sides were below £8,424 for NIC purposes and so therefore no NIC is payable on them. I then went on to do a tax computation on her remuneration and dividend. I think I got to something like £32k saving and concluded it was worthwhile. I had a penalties question which I calculated £111 interest and then £100 penalty. Then I had a trading profit adjustment calculation which was quite straightforward. I had to state what and when the tax forms had to be submitted, I could remember the forms but I couldn’t remember the day which the form needed to be submitted so I just stated the month. Our exam was delayed 2 hours due to the program not working and I was absolutely exhausted by the time we sat it!

The exam was manageable and I finished 20 minutes early, this is the first paper I couldn’t rely on Opentuition because I took the Malaysian variant which is not available on OT. I self-studied solely with BPP study text book and did lots of practice with ACCA past papers. I am confident that I have done well in this exam. Can’t wait to start learning with OT again, look forward to AA in December!

the profit was subject to 19% corp tax and dividends was also taxed. I should have given more time in C section - I couldn't complete the last page - I think it was about income tax computation on cash accounting.... does anyone remember how many marks was that? I am just hoping to get 50%

there is no NI on Dividend.

@alanah said: The exam was okay, there were still a few trickier subjects. A lot of questions about penalties and also Incorporated vs Unincorporated trade questions. For the life of me I couldn't remember what NICs were paid on dividends! Here's hoping I did well enough and that everyone else has too!

Sorry yes, I remember now I deducted the corporation tax and then taxed the dividends too. I think I corrected myself last minute!

I thought it was ok. The chauffuer one was tough, I guessed £350(took the higher cost of each). I had the Partnership one for whether it was beneficial to incorporate as a company. This question was good, just had to work out their income tax on their salaries/dividend, NIC on the male, then corp tax - I had the company being less - did anyone have that ? Think I made a mess of the Sofia Automatic UK Residency Test - where any of the two of them residents ? Struggled with the losses on the four subsidiary groups - two had different month ends I am sure and one was under 50% so I said zero for that company. I had a lot of capital gains - one the holdover relief gain deferred I got was £13,000. Didn't have a lot of trade losses or overlapping profits questions so that was a bonus. The IHT question was on the 1.5m death estate was ok.

On the groups one I did a little group structure, 2 of them were indirect through Whilstes subsidiary flute, and they were less than 75% controlling interest and so therefore were not in a relief group with Whilste. Flute was, and I think the dates were different, but I may be mixing it with another question!

I also had the sole trader or Company section C...also said no NIC because below the threshold with the directions renumeration at 8k. Then did corporation tax and taxed the dividends, only issue was I didn't know what to do with the pension bit that was mentioned so just ignored it so def lost some marks there. Was confused by the VAT chaffeur drive/hamper too, had to guess for that one!

Was there a pension part of this question? If so I missed it completely. I did the tax, NI of both under the Ltd company set up and got this lower than the partnership. Was the guy called Herbert in your question?

It was a woman and the company was Nussa. I can’t remember what I didn’t with them, but I have a feeling that because they were contributing towards her private pension scheme, I did nothing but tax the benefit under Class 1A. A contribution to an occupational pension scheme is exempt, but not an employer contribution towards a private one? I think the problem with this exam was that no amount of question practice could have prepared you for it, and for me, it was how I prepared myself so a lot of the questions threw me because I had never seen it before. This applies to section A and B too.

Hey all, quick question... Does everyone get a different set of questions for section B and C, or something? I don't remember seeing anything about a chaffeur, and the name Nussa doesn't ring a bell.

I had a question about VAT. What exactly would be VAT balancing payment if you say had VAt payble last year of 133,000 and Vat payble current year 144,000. how would one calculate this

They were part of the annual accounting scheme, thus they had to pay 9 monthly payments and 10th and last payment would be balancing after end of year.

@rjb84 said: They were part of the annual accounting scheme, thus they had to pay 9 monthly payments and 10th and last payment would be balancing after end of year.

yes also got the same question 10% of last year multiply *9 then deduct rest from 1440000 ..

What did people put for the eligible qualifying assets for rolling relief? I initially thought it had to be the warehouse, however then remembered that plant and machinery could qualify too and went with this thinking maybe the warehouse wasn't connected to the trade? However afterwards I realized it had to be "fixed plant and machinery" to qualify and can't remember if it said this so now thinking I should have actually gone with the warehouse.

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@xanpech said: What did people put for the eligible qualifying assets for rolling relief? I initially thought it had to be the warehouse, however then remembered that plant and machinery could qualify too and went with this thinking maybe the warehouse wasn't connected to the trade? However afterwards I realized it had to be "fixed plant and machinery" to qualify and can't remember if it said this so now thinking I should have actually gone with the warehouse.

It was Fixed plant and machinery as the warehouse was bought more than one year ago which is not allowed for rollover relief.

Hello, I had the sole trader vs incorporated question with Nussa as the company name. I did notice the pension element and I actually deducted as an allowable expense from company profit. (I cant actually remember now if it said private pension or not) My second section C question was to calculate the employment income for an individual but also the associated benefits making up the employment income (did anyone else have this question?) I felt quite confident coming out of the exam but the more I am thinking through what I wrote the more I am doubting if I will get the pass :(

@kalpesh09 said: It was Fixed plant and machinery as the warehouse was bought more than one year ago which is not allowed for rollover relief.

This was a Section B question right?

yes it was FIXED PLANT AND MACHINERY.

did anybody got a question in VAT section B "mr XYZ imported some goods from Overseas' what would be its entries options were a)output vat 200,input vat 200 b)output vat 200 c) input vat 200

@kalpesh09 said: It was Fixed plant and machinery as the warehouse was bought more than one year ago which is not allowed for rollover relief.

Ah cool cheers for this. Does anyone remember what they did for the inheritence tax q, on when the date for the CLT was due? I put 30th April but not sure if I applied this right.

I got the cash accounting self employed question - Did people add back the motor expenses and other stuff and just deduct the mileage expense? Also was the answer to the tax on death estate 140K - Deduct the house from the total as it was left to the wife and tax at 40% - I guessed that there was no NIL RATE band left as it was all used up in lifetime gifts?

I had the employment income for section c. Thought it was ok, the loan, home entertainment and car benefits were quite straight forward. Was the capital allowance just the full amount in the question? I didn't take 18% due to AIA, Did you have the diesel car at 36%? I messed up with the interest! Did anyone have the Q where one company transfers an asset to another where it owns over 51%, and you were to calculate the capital gain. Do you use the market value when it was at company one or when the new market value now it is owned by company two ?

Another interesting question I just remembered was the tax point one...it was delivered on the 28th Feb, invoice sent on 10th March so within 14 days, however they'd paid on the 7th March. All the examples I'd seen before had the payment happening before the delivery so hadn't seen this problem before...I went with the 10th March thinking the invoice within 14 days is most important? Think thats only over-ridden by payment if payment is before delivery.