F6 intro

You are wrong! A sole trader is NOT a company!! Sole traders and partnerships are unincorporated trades and subject to income tax.

what about self-employed? is that a company?

Self-employed and sole trader are one and the same thing Companies are incorporated with self indentity different from owners (shareholders)

Q2. Why 250 pounds included into Accountancy fees in respect of capital gains computation is commented as ”for private/persinal tax”?? and so disallowed. Comment please.

Q3. n) “interest paid on overdue tax is not deductible and interest received on overpaid tax is not taxable.” Could you explain this please.

Q4: We use balancing allowance/charge only in case when we dispose the motor car for less then cost (because if we hadn't disposed it we could get relief for whole amount of cost), right? Explain, sir, please.

up

Q.2 An expense incurred in calculating your personal tax cost is NOT an expense incurred in either buying or selling the asset - it is the result of having made the gain that tax then needs to be computed Q.3 This is simply as it states - the individual does not get a deduction from taxable income for any interest charged on overdue tax and equally any interest paid to the taxpayer on overpaid tax is not then treated as taxable income of the taxpayer Q.4 A balancing adjustment is only computed on the sale of a car when it is a non pool asset ie where it has private use by the proprietor and is the difference between the sale proceeds of the car and its tax wdv, restricted to the business use percentage thereof.

thanks a lot sir! But i dont quite understand the Q2. Could make it more clearer please? or will I encounter it somewhere in future lectures?

It is the general rule that private / personal expenses are not allowable expenses for an individual in computing the assessment on the individual and calculating your PERSONAL tax liability is by its very nature a personal expense!