- This topic has 154 replies, 83 voices, and was last updated 13 years ago by
.
- Posts
Overall i think it was an okay paper but very time consuming…… i attempted the questions in the following order 1,5,4,2,3, 3 being the hardest and 5 being the easiest. I think question 5 was a godsend for us all as it was worth 15 marks.
Does anyone remember how the marking was for question 1 and 4? there were lots of small marked questions.
I can remember question one being (8marks) for adjustment to trading profits (6marks) for the tax payable (4marks) payment due on 31/01/2012 (2 marks) ?????
The second part of the question threw me can anyone remember what periods they asses in 10/11 and 11/12 and also when you calculated the NI on employment did you do 01/12/10 – 05/04/11 or to 30/09/2011???
Thanks- Topics: 23
- Replies: 68
- ☆☆
@arleneld said:
I only used the nil rate band once, against the CLT in lifetime ??
I couldnt remember how to calc the lease in proberty income, was it £68,000 minus the equation ?The lease premium bit was:
£68,000 – (£68,000 x 2% x (6-1))
The (6-1) bit was because you don’t count the year the lease was granted, so just look at 5 years.
I’ll be honest, I’m not 100% on IHT. However, as far as I am aware you use the £325,000 first when the CLT actually occurs, looking back 7 years. There is only a PET so you have the full nil rate band to calculate the lifetime tax.
When he dies you have to go back again. The PET is within 7 years of his death, so becomes chargeable now for death tax. That PET will use up the band that you have to use again to look at the CLT for the death tax.
- Topics: 23
- Replies: 68
- ☆☆
@louibee said:
Overall i think it was an okay paper but very time consuming…… i attempted the questions in the following order 1,5,4,2,3, 3 being the hardest and 5 being the easiest. I think question 5 was a godsend for us all as it was worth 15 marks.
Does anyone remember how the marking was for question 1 and 4? there were lots of small marked questions.
I can remember question one being (8marks) for adjustment to trading profits (6marks) for the tax payable (4marks) payment due on 31/01/2012 (2 marks) ?????
The second part of the question threw me can anyone remember what periods they asses in 10/11 and 11/12 and also when you calculated the NI on employment did you do 01/12/10 – 05/04/11 or to 30/09/2011???
ThanksDamn! I forgot to look at the basis periods. I just treated him as earning 20% of 10 months, whereas his first year should have been 1st December to 31st March.
Just to confirm, when I take my wrong profit figure and work out the NIC based on it, I will get error carried forward marks, right?
@CuriousMeerkat Let’s hope we’re not both wrong then!! 🙂
Also, there is another fraction for lease premiums, gives you the same figure, which is £68000 x (51-6)/50.
Got the same for IHT. PET uses part of the nil rate band on death and the rest is used on the CLT on death.
the exam was just okay….i wouldn’t say it was hard.the questions were a little tricky in between ,!..especially corporation tax. i got really panicked when i was doing the capital expenditure part. And capital gains was a little tricky. i did the Income tax and IHT well….Still really worried …!!!
Will we get marks for applying the logic properly even though we went wrong in the calculation part?previous exam papers were quite easy but todays was a bit different as it was already told by the examiner…
although the paper wasnt hard but a whole question on VAT and asking for so many dates is ruthless.
im just saying@curiousmeerkat said:
The lease premium bit was:£68,000 – (£68,000 x 2% x (6-1))
The (6-1) bit was because you don’t count the year the lease was granted, so just look at 5 years.
I’ll be honest, I’m not 100% on IHT. However, as far as I am aware you use the £325,000 first when the CLT actually occurs, looking back 7 years. There is only a PET so you have the full nil rate band to calculate the lifetime tax.
When he dies you have to go back again. The PET is within 7 years of his death, so becomes chargeable now for death tax. That PET will use up the band that you have to use again to look at the CLT for the death tax.
Yes thats what i did.
Can you remember how question 1 was broken down?previous exam papers were quite easy but todays was a bit different as it was already told by the examiner…
although the paper wasnt hard but a whole question on VAT and asking for so many dates is ruthless.
im just saying@curiousmeerkat said:
Damn! I forgot to look at the basis periods. I just treated him as earning 20% of 10 months, whereas his first year should have been 1st December to 31st March.Just to confirm, when I take my wrong profit figure and work out the NIC based on it, I will get error carried forward marks, right?
Nothing is carried forward so if you make an error on one thing it will not count for using it in the next question aslong as you have applied the correct rules. You wil still get full marks for calc the Ni correctly.
- Topics: 23
- Replies: 68
- ☆☆
@louibee said:
Nothing is carried forward so if you make an error on one thing it will not count for using it in the next question aslong as you have applied the correct rules. You wil still get full marks for calc the Ni correctly.That, louibee, is most excellent.
I made another stupid cock up on the first question. I stated, quite clearly in a notes section after the question, that I had ignored the interest she received from the NS&I certificate and gilt investments as they were tax free.
What the hell was I thinking? I knew that the money was received gross, but decided to change the tax rules and make them tax free!
Maybe if the marker has a sense of humour they’ll let me have it…
What is the answer to part 1 of the vat Question.
I dont think “Jan 11” (my answer), will be worth 4 marks ??? 🙂
- Topics: 0
- Replies: 26
- ☆
@curiousmeerkat said:
That, louibee, is most excellent.I made another stupid cock up on the first question. I stated, quite clearly in a notes section after the question, that I had ignored the interest she received from the NS&I certificate and gilt investments as they were tax free.
What the hell was I thinking? I knew that the money was received gross, but decided to change the tax rules and make them tax free!
Maybe if the marker has a sense of humour they’ll let me have it…
I thought NS&I interest IS tax free? But yeah, gilt interest are taxable and is received gross. My answers are quite similar to yours, only thing I’m going to lose marks are question 3, I hope… lol
what did it mean when it was written in notes that PAYE was deducted from all earnings at 50%???
Ns&I interest was exempt as it was national serving certificate
where as Gilts were recieved gross
Both the bonuses were coming in the employment income ??? as both 6000 each were recieved in june 2010 earliest of entitlement date??? i wish i m correct
@armaghansabri99 you needed to apply 50% to the employment income and deduct it from the tax liability as part of the ‘Tax deducted @ source’ under PAYE.
NS&I interest is tax free up to £15,000 per year.
Only one bonus was assessable in 10/11 as they are assessed in the year of entitlement. As he was entitled to the first bonus on the 10/03/2010 it fell into the 09/10 tax year, not 10/11. Only £6,000 was part of the 10/11 employment income.
I got stucked in question 2 which was really tough corporation tax……
Question 1
part b
1) i computed 3300 salary in to 4 months 13200 then i computed class 1 nic ee & er
2) where as trading profit was concerned i took out profit for new partner dec to september profit by 20% residual profit
and then i did opening year rule 10/11 and 11/12 it was ongoing rulei wish i m correct
q1 & q2 were core areas with easy NIC marks in q1 but all that capital expenditure items and capital allowances had my head spinning but i think i did manage to get most of them right..then q3 i skipped to attempt q4 & q5 but although q4 was basic textbook knowledge i messed it all up 😉 got most of the IHT calculations right then back to q3 which sucked up about 45 minutes of my time..over all not so happy with what i achieved but hoping for the best 🙂
@jwarrick6 said:
NS&I interest is tax free up to £15,000 per year.Only one bonus was assessable in 10/11 as they are assessed in the year of entitlement. As he was entitled to the first bonus on the 10/03/2010 it fell into the 09/10 tax year, not 10/11. Only £6,000 was part of the 10/11 employment income.
ns&i was exempt and gilts were gross riteee?
bonus i doubt?:S@curiousmeerkat said:
Question 2I remember allowing all of the industrial building expenditure of the factory, as the drawing section that supports it is allowed and the general offices accounted for less than 25% of the total.
What was the revenue expenditure debited to the capital account? The decorative wall? Or was there more?
The loan stock interest paid I corrected for the opening and closing accruals. I think it came out at £22,000?
With the capital allowances I claimed the AIA first against the lift and ventilation system, transferring a zero balance to the special rate pool. Then claimed the balance of the AIA against the machinery. Cars went straight to the main pool as they were less than 160g/km (but not low enough for FYA). Ignored their private use/pool car aspects.
Property income I corrected for the accrual, and also worked out the part deemed as rent for the premium on the lease.
Can’t remember much more, but I do remember charging CT at 28% as the total taxable profits came out at over £1,500,000.
I’ve had pretty much the same workings as yours but for some reason I don’t remember for the drawing section that was saying it supports the factory. I did remember from the study text..it was on all places saying drawing offices are not allowed and add it up together with the general office and I got the offices above the 25% limit…and didn’t all low them.
Also what you have done with the Second Hand office purchased? I stated that is not eligible for IBA and the P&M (the ventilation systems etc..) added up to the cost of the office..and also did not allow them for AIA as part of the office..not sure though if that’s correct..
The 3rd question – didn’t do the calculations..only said why they don’t qualify for Entrepreneurs relief….time of-course was not enough ..
I think I also did a mess with the indexation allowances..The inheritance tax question was easy. Overall the exam was not so difficult but just once you start writing down it becomes all messy..well we shall wait long time until the results… 🙂
yeah, gilts were gross 🙂
you would have lost 1/2 a mark at most for using both bonuses. don’t worry about it!in chargeable gain
Alios shares part gain was qualified under enterprenuer relief ? i guess so
but it had also investment property which was taxable at 28%Bon didn’t gains qualifying for enterprenuer
Cherry was not an employee so no enterprenuer his basic rate band was exceeded to 40800 ?
so his half gain taxable at 18 and rest at 28%Dinnah holdin in co was 3% SO SHE DIDNT GOT ENTERPRENUER RELIEF
IHERITANCE PART IS IRREALEVANT IN DINNAH PARAGRAP I GUESS?PLEASE TELL ME ONE THING THAT 10100 ANNUAL EXEMPTION WUD BE FOR EACH AND EVERYONE A,B,C,D ???
COZ SUM TOLD ME N CONFUSED ME THAT ONLY ONE TIME ITS APLIED TO FULL FIGURE? PLEASE CLARIFYAND THE WHOLE GAIN COMPUTING WAS THRU TAKEOVER?
PLEASEEEEEEEE REPLY
- You must be logged in to reply to this topic.