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thanks Joevassalo. I think working overseas is fully exempt if required by employer, and if he occupies the house both before and after.
the paper did cover the whole syllabus pretty much. not many people remember about 10% tax for savings income below 2,440.
good luck to all of you 🙂- Topics: 0
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Did anyone adjust the old chaps personal allowance because his pension income and bank interest was higher than the £22,900?
@champion said:
Did anyone adjust the old chaps personal allowance because his pension income and bank interest was higher than the £22,900?IT SHOULD NOT BE ADJUSTED – IT WAS WITHIN HIS PAA – IT IS ONLY HIS SAVINGS WHICH ARE TAXABLE INCOME AND YOU NEED TO USE THE 10% of £2440 FIRST.
That is what I did at least. Good luck.@champion. I adjusted the P.A for total income on the old chap. Thought the £2440 only counted if total was below that, if above-tax at 20% ……. thats what i did anyway.
@cazza99 said:
@champion. I adjusted the P.A for total income on the old chap. Thought the £2440 only counted if total was below that, if above-tax at 20% ……. thats what i did anyway.Well his “OTHER” income was NIL really after his PAA. Then Savings income….and the first £2440 apply here….. I think.
Hi Joe. You may well be right, i honestly cant be bothered checking out the text book. Cant do much about dropping those marks now can we……….. need to revise for F9 on friday!
Lets pray for a pass;)@cazza99 said:
Hi Joe. You may well be right, i honestly cant be bothered checking out the text book. Cant do much about dropping those marks now can we……….. need to revise for F9 on friday!
Lets pray for a pass;)I agree with you. Too late now and sometimes you learn from these mistakes anyway.Good luck for your F9. I have the F8 tomorrow.
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His pension income was about £9k plus his bank interest which was about £18k(gross), that gives net income of £27k which is £4k over the £22,900 limit therefore divide the excess £4k by 2. Then take the £2k off his personal allowance of £9,640 making it £7,640, that’s what I did hopefully it’s right.
@champion said:
His pension income was about £9k plus his bank interest which was about £18k(gross), that gives net income of £27k which is £4k over the £22,900 limit therefore divide the excess £4k by 2. Then take the £2k off his personal allowance of £9,640 making it £7,640, that’s what I did hopefully it’s right.Yes but Non-Savings income (his pension) and Savings Income (interest) are to be kept separate and PA only apply on Non-Savings income.
in q.1 old chap pension income was non saving?if it wasnt non saving what was it and how to tax it..i considered it non saving and tax at 20% and adjusted PAA coz his pension income( which i considered it was non saving) and gross interest income was above 22900.
also the guy whos employed in q1…was it some info saying his EMPLOYER PAYS ON HIS BEHALF…i did not deduct it from his employment income at all. i dont know i did right or wrong, scenario didnt say that pension is DEDUCTED . i just gave reason for not deducting it that whatever employer pays on employee behalf duznt have any effect on income tax computation but it will count towards his Annual pension contribution.- Topics: 0
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@cazza99 said:
@champion. I adjusted the P.A for total income on the old chap. Thought the £2440 only counted if total was below that, if above-tax at 20% ……. thats what i did anyway.After adjusting his personal allowance and deducting it his pension was still above the £2440 so we couldn’t use the 10% rate.
also last part of q5 on IHT. if anyone remember that q says
1-NRB is same for 2015 i.e 325000 (the year he died)
2- dont use AE (6000)?- Topics: 0
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It says this in my notes so I think the personal allowance should have been adjusted.
Levels of Personal Allowance
The amount of your Personal Allowance depends on:
a.) your age
b.) your total income in the tax year
Total income means everything you receive from all taxable sources. That means you need to include things like pensions and interest on your savings in a building society before the tax has been taken off.@ joe & champion
Quote from BPP passcards
“If non-savings income does not exceed the starting rate limit, then the savings income is taxed at the starting rate (10%) up to the starting rate limit: £2440 for 2010/11”
Which i take as…… take PA off pension, then whats left starts to eat into the 2440. If you run out of pension before you get to 2440 then tax savings at 10% (for whats left of the 2440 limit) if you go over 2440 then savibgs is taxed at 20%@blackcode
I couldnt understand why we had to ignore Annual Allowances on IHT question and frantically had to adjust my answer at the end as I had included them.
Any suggestions or are ACCA just playing with our minds??@marky123 said:
@blackcode
I couldnt understand why we had to ignore Annual Allowances on IHT question and frantically had to adjust my answer at the end as I had included them.
Any suggestions or are ACCA just playing with our minds??So it was blessing in disguise for me..feeling the pressure of running out of time (IHT q was my last one) .I forgot to deduct annual allowance of 6000 and also used 325000 NRB on his death in 2015.
I don’t think the examiner could have made it any easier. What time pressure? The income tax and corporation tax questions were so basic I didn’t even have to think. The last question even told you to forget the annual exemption on IHT! So what was hard about it?
@danielglover said:
I don’t think the examiner could have made it any easier. What time pressure? The income tax and corporation tax questions were so basic I didn’t even have to think. The last question even told you to forget the annual exemption on IHT! So what was hard about it?The paper had a lot of subdivisions covering most topics to remember all at one go. So there was time pressure. Clearly it seemed quite easy for you. It wasn’t difficult but quite a lot to work out.
It was not too difficult but forget a few key points like the 80k cap on a cars listed price & u don’t also pro-rate lease premium received during the year. the GCT was a bit tricky (got 200 exempt days out of 210 in the PPR relief & with annual exemptions there was no CGT).
Overall it was a great exam, had to take a 20 minute toiLet break and still attempted all questions with 10 minutes to spare!
@danielglover said:
I don’t think the examiner could have made it any easier. What time pressure? The income tax and corporation tax questions were so basic I didn’t even have to think. The last question even told you to forget the annual exemption on IHT! So what was hard about it?If it was as easy as that Daniel then Ill say congratulations now in advance before you receive your 100% pass mark in February! lol
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I messed up with the retired William. I wrongly exempted his pension income when calculating his income. I was unsure whether it was exempt or not, so obviously I made the wrong decision…. That could be very costly to me, but overall I am rather optimistic though.
The exam was on the fair side, but there was just too much information in the longest question!
Good luck to everyone.- Topics: 0
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nothing to say 🙁 5 emptied my brain a day before and when i saw the f6 paper my mind just went blank 🙁
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The exam paper is available now:
https://www.acca.co.uk/pubs/students/acca/exams/f6/past_papers/uk/f6uk_2011_dec_q.pdf
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