*** F6 December 2012 Exam *** Instant Poll and comments***

@oltago
Of course it’s 50% of tax liability (not of tax payable), I just made a typo- sorry!
But (to my defence) I did say that each payment should be 18,100, which is 50% of tax liability 36,200 🙂
Will correct the typo now!

I think it is tax payable. But she already paid some amount based on tax payable in prior year, and she have to pay balancing amount (around 3000) until 31.10.2012. At least, i understood and wrote it that way.

I have deducted FHL loss from trading income because it has to be treated as business. Is it completely wrong?

In Q4 I have simply deducted NIC 1 and tax payable from given amount after employer`s NIC1 (I was confused with that number because 72121 or something like that do not correspond to 80000-EMPLOYER`s NIC1)

I think I made mistake with dividend because I grossed it up for 100/90 but 64000 was already gross dividend. Tax should be computed on 64000 and after you get tax liability tax paid at source (64000-64000*90/10) should be deducted from tax liability. How many marks will that cost me?

Can somebody please tell me should we include cleaning and levelling of ground for calculating the cost for chargable gains. It was Q3 part b, (II), I think.

@sumzero: I believe the balancing payment is due 31.01.2013, not 31.10.2012. (The first payment on account is on 31 January during the tax year, the second payment on account on 31 July after the tax account and the balancing payment on 31 January the next year).

You cannot deduct an FHL loss from other trading income – you can only carry it forward and offset it from future gains from FHL. You always have to offset trading losses from trading gains of the _same_ trade.

Regarding the dividends: no tax was deducted at source; this is why you didn’t have to gross up the amount.

I believe levelling counts as an “extension” but I’m not sure myself.

What did u do in Q4 part A,in dividends we take the gross amount minus PA then income tax liability with no CT liablity n no NIC right?

@tbm13

tax liability is income tax calculated on taxable income (can’t remember what it was)
tax payable is the tax liability (as above) less tax deducted @ source (in our case there had been PAYE, bank interest deduction and dividends credits) = this came to 36,200 (per my calculations)
– hence 50% of tax payable was due on 31 Jan 2013 (18,100) and another 50% was due on 31 July 2013

Let’s not mix the tax payable with the balancing payment here.
The balancing payment was something like 3K (as she paid already 34,400 or something like that on account of 2011-12).
The balancing payment is nothing to do with determining the next year’s payments on account. It’s just a figure of what you owe to HMRC for the past tax year, nothing less nothing more.

F6 UK Exam Questions Dec,12:
https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/f6/exampapers/uk/f6uk_2012_dec_q.pdf

time managing is Difficult..Overall F6 Question ask indirect