*** F6 December 2015 Exam was.. Instant Poll and comments ***

@flapper84 said:
Yes 30% is correct but after 6 months or 12 months from end of tax year?

no it is for careless submission. period doesn’t apply to this question. its very rare that one could get a 30% penalty for careless behavior but that’s the maximum cap, it is for prompted/unprompted disclosure.

I think you mean other question where it was 12 months 100% PLR or 6 months 100% PLR. I had chosen 12 months 100% PLR for that question. not sure if it is right.

@gawcram said:
Correct .. 30./. Penalty answer is 480.
Can you remember the no for 4 installments? Is it answer C ?

Yes it was C I think.

@yentam said:
Just going through the Part B ques, could people help me out with some blanks and the mark allocations. Trying to work out what I got right and wrong!

1. Cash and accruals basis?
Was this also the question with the basis of assessment and overlap profits?
Anyone remember how this question was broken down?

2. Capital gains
a) Simple capital gains calculation – some of it was chargeable at 18% I think (2 marks)
b) Capital gains with entrepreneurs relief ( ???? marks)
c) Capital gains comp with a capital loss for the disposal ( ??? marks)

3.a) Inheritence tax married couple chargeable person? (1 mark)
b) Inheritance tax benefits of being married? (2 marks)
c) Computation (7 marks)

4a) ?????? (2 marks)
b) how are free goods treated in terms of VAT (2 marks)
c) EU treatment of VAT on goods (3 marks)
d) Annual accounting scheme payments (3 marks)

5.a) Income tax for Samson (3.5 marks)
b) Income tax for Delilah (9.5 marks)
c) Samson’s saving on IT (2 marks)

6. a)calculate trading profits ( 10? marks)
b) loss relief included to calculate corporation tax (3 marks)
c) what to do with the unrelieved losses (2 marks)

2b was worth 4.5 marks, 2c was worth 3.5 marks

4a) what information should Eli include on VAT invoices relating to her business and her suppliers business

@karnalahmed said:
4a asked what information related to thr business and customers should be on the VAT invoice

Supplier’s (Sellar’s) Name
Address
Customer Name
Address
Supplier’s VAT Reg. No
Invoice Number
VAT Rate or Type
VAT amount for each item on invoice
Total amount (without VAT)
VAT Amount
Total Amount (with VAT)

these are few things which I wrote.

@yentam said:
how should free goods be treated for VAT?

Up to £50 per customer per year = no output vat

Anything more than output vat needs to be charged

@yentam said:
Just going through the Part B ques, could people help me out with some blanks and the mark allocations. Trying to work out what I got right and wrong!

1. Cash and accruals basis?
Was this also the question with the basis of assessment and overlap profits?
Anyone remember how this question was broken down?
THIS QUESTION GAVE YOU THREE/FOUR THINGS

i) INVOICES (SOME OF THE CASH NOT RECVD)
ii) PAYABLES (SOME OF THE AMT NOT PAID)
iii) CAR WITH A FIXED EXPENSE, 85% FOR BUSINESS USE, MILEAGE WAS GIVEN, MILEAGE FOR BUSIESS/PRIVATE WAS ALSO GIVEN I THINK

WE WERE REQUIRED TO CALCULATE HER TAXABILITY BOTH BY ACCRUAL AND CASH BASIS AND ADVICE I THINK.

NO THIS QUESTION DIDN’T HAVE BASIS OF ASSESSMENT OR OVERLAP PROFIT, THAT WAS A DIFF. QUESTION

2. Capital gains
a) Simple capital gains calculation – some of it was chargeable at 18% I think (2 marks)
b) Capital gains with entrepreneurs relief ( ???? marks)
c) Capital gains comp with a capital loss for the disposal ( ??? marks)

3.a) Inheritence tax married couple chargeable person? (1 mark)
b) Inheritance tax benefits of being married? (2 marks)
c) Computation (7 marks)
I DON’T REMEMBER SUCH QUESTION?????

4a) ?????? (2 marks)
b) how are free goods treated in terms of VAT (2 marks)
c) EU treatment of VAT on goods (3 marks)
d) Annual accounting scheme payments (3 marks)

5.a) Income tax for Samson (3.5 marks)
b) Income tax for Delilah (9.5 marks)
c) Samson’s saving on IT (2 marks)

6. a)calculate trading profits ( 10? marks)
b) loss relief included to calculate corporation tax (3 marks)
c) what to do with the unrelieved losses (2 marks)

@yentam said:
thanks guys. can someone remind me the question on cash/accruals basis and the basis of assessment with the overlap profits. My mind has gone blank on the breakdown of that question

6 marks for comparing cash/accruals basis

Anymore MCQ’s that people can remember?

Bollox! The time limit for companies to notify HMRC of chargability is 12 months with a maximum penalty of 100%. Well done to those who got it right. (Checked Kaplan textbook)

Yeah me too coz dividend and interest are deducted from the Inc tax liability I guess 😛

Other 4 marks were for trading income assessments basis periods

@flapper84 said:
Easiest question on the paper- what do HMRC encourage through taxation?

Cars purchase
Saving for retirement
Charity donation
Something else

Think i just had savings for retirement and charity. I wanted car too but i didnt think i could see an option for all 3

@yentam said:
Oh so that came after the cash/accruals question?

Someone else said it was a different question but I can’t imagine the cash/accruals was anymore than 6 marks, certainly not 10?

No they were both same questions a part was trading income assessments and b part was cash and accrual basis