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For Q1 is it correct that the annual salary needed to be apportioned for the 9 months of employment?
Also the inhertiance tax question wasnt very conventional.
Unfortunately i sacrificed some of the question relating to the trading losses due to bad time management, though i did attempt the remaining 90% of the paper
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Ok, I’ve just realized, if they’ve started trading on Jan 1 first year to be assessed is 2011/12 for the period Jan 1-Apr 5…
even though I showed all the workings I still thought that it needs to be excluded…
I hope I’ll get points for workings at least…- Topics: 0
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Well my paper was ok but a poor exam management.
1.5 Hour power supply was off, no extra time given as pomised before paper.@ monica786 said 1 hour, 18 minutes ago:
@ vipulv for flat rate I also wrote it was not beneficial. I thought with flat scheme you just apply the % to the VAT inclusive output and ignore input VAT.I really messed up on the last 3 questions as I just rushed it as question 2 was v.time consuming.
Hey yes I thought that too flat rate % x sales it was inclusive.
What did people do??
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For question 2 the second company I did 4 months and then 12. Would I still get follow through marks even though it should have been 12 then 4.
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for IHT do you use 70% of the 2002 nil rate band or 2012?
@robinholt10 said:
for IHT do you use 70% of the 2002 nil rate band or 2012?You use 70% of the 2012 nil rate band.
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🙁 was the intergroup chargable gain taxable?
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@das1992 said:
For question 2 the second company I did 4 months and then 12. Would I still get follow through marks even though it should have been 12 then 4.I made the same error!
Found exam was ok but the desk at the exam centre was so small! It was only the width of the chair so you couldn’t look at the question paper and the answer paper at the same time and had to keep lifting my calculator on and off my paper. Kept flicking back and forth to tax tables. Never had that at the AAT exams you could detach the tables and have everything open double sided. Got completely confused and missed a whole page of questions, luckily noticed when checking through but there should be a minimum size of desk! Plus ran out of paper, the answer booklet should definitely be longer. Rant over, glass of wine or 3 required now and a big thank you to open tuition!!
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Exam paper was very fair,time pressured nonetheless but manageable.
How was it the flat rate beneficial ? please remember both sales and purchases were inclusive of VAT, and on flat scheme rate you apply 12% given in the exam at the total gross turnover figure.
Flat rate scheme :- Output (Sales) approx £59,000 @ 12% = £7,080.
Normal Method: Output £59,000/1.20 x 20 % = £9833
Less : Input approx £27,000/1.20 x 20% = £4500
VAT Payable £5,333, so Flick Pick was better off not registering for flat rate scheme as he would have to pay extra £1,747 .Anyone enlighten me
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inter – company sales are exempt , provided both companies elect for CGT within two years
@Parallel Universe
Flat rate scheme :- Output (Sales) approx £59,000 @ 12% = £7,080.
Normal Method: Output £59,000/1.20 x 20 % = £9833
Less : Input approx £27,000/1.20 x 20% = £4500
VAT Payable £5,333, so Flick Pick was better off not registering for flat rate scheme as he would have to pay extra £1,747 .This is exactly what I did!!! I thought too that flat rate scheme not beneficial but there are mix answers on here!
Anyone remember for the last IHT question?
Nil band rate 325000+ 70% 325000
Life time chargable the one for daugter pet less the 6000 allowance
And the the one gift to sonAdditional liabilities on death
The first one was exempt
Second one coverd with the nil rate band so was exempDeath estate
2 properties
Car
Savings
Stocks
Less the morgage payment not the endowlent one
Less the loan dept not the worbal one
Then nil band rate analysis
40 % iht payable bythe representitive
Suffered childerenTaper relief explanation with 80 percent discount
I dont remember the last part?
Anyone agreed with me?- Topics: 0
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@vipulv said:
@Parallel UniverseFlat rate scheme :- Output (Sales) approx £59,000 @ 12% = £7,080.
Normal Method: Output £59,000/1.20 x 20 % = £9833
Less : Input approx £27,000/1.20 x 20% = £4500
VAT Payable £5,333, so Flick Pick was better off not registering for flat rate scheme as he would have to pay extra £1,747 .This is exactly what I did!!! I thought too that flat rate scheme not beneficial but there are mix answers on here!
I made a mistake in calculation slightly but the conclusion was the same that it was not beneficial.
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were we suppose to apportion the salary in Q1? Because they did not mention anything about stoping emplyment…. and in Q2 was there any adjustment required for the office lease during adjusting profits? (for the first guy)
@darshna11 said:
were we suppose to apportion the salary in Q1? Because they did not mention anything about stoping emplyment…. and in Q2 was there any adjustment required for the office lease during adjusting profits? (for the first guy)Regarding question 1, I think they should have been much more clear. I assumed, looking how much time the partnership would consume, that they couldn’t possibly do both, so I time apportioned the employment.
Regarding question two, I added on the depreciation and amortization, and subtracted the lease expense. I can’t remember what the lease was, but supposing the lease was £x and length of lease is y years, then x – (2%*(y-1)*x). I’ve got a bad memory, and can never remember the numbers after the exam!
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Both gifts were exempt during lifetime.
The 1st gift was was longer than 7 years, therefore it did not come to play after death scenario.
However , after death though, the 2nd gift was within 7 years period and could have been subject to IHT only for NRB (£220,000 – £325,000) to bring it down to NIL (it actually within 1-2 years) and not taper relief available either as was not for 3 years or longer, so then remainder of unused NRB i.e. £105,000 can be brought as a relief upon calculation of death estate, I think I have missed the 70% unused relief available from her husband, then again he gave the NRB for 2001 – 2002 was that to confuse us ?- Topics: 0
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I found Q4 a gift
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I agree Q1 was a lot to cover , especially working out the partnership bit, so was Q4 with straddling on both companies, both were time consuming.
I suppose the rest of the questions were not as timed pressure, so it evens out.
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Sorry Q2
Okay how about chargable gain question first part one was stating resident and ordinary resident in uk and second one was the corporation
With the painting, i deduct the allowance of 10.600 then the calculate gain
Second one only warehouse and freeoffice building calculated gainThird part only freeoffice building was available to ER relief with the 10 %
Next part i did without a rollover simply deduct costs and calculated the indexation cost and deduct it
@artursaliasi said:
Both gifts were exempt during lifetime.
The 1st gift was was longer than 7 years, therefore it did not come to play after death scenario.
However , after death though, the 2nd gift was within 7 years period and could have been subject to IHT only for NRB (£220,000 – £325,000) to bring it down to NIL (it actually within 1-2 years) and not taper relief available either as was not for 3 years or longer, so then remainder of unused NRB i.e. £105,000 can be brought as a relief upon calculation of death estate, I think I have missed the 70% unused relief available from her husband, then again he gave the NRB for 2001 – 2002 was that to confuse us ?The question after asked for the effect if she died 5 or 6 years later. Was I correct in saying that if she died 5 years later there would be no effect on the nil rate available (as PET was within 7 years of death), but if she died 6 years later, the PET would be more than 7 years ago, and therefore the death estate could benefit from the full allowance?
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yup i also think Q1 should be more clear…well because nothing was mentioned, i took the whole amt. Hop they are linient in marking… Q2 i did the P-(P*9*2%) and then multiplied the amt by 12/16 then as it was a not included allowable expense, i deducted it frm the profits… Did anyone do something lyk dis? And in Q5 my nil rate band available was (325000-220000) + 70% of 325000 ..i reduced 220000 coz it was within 7 years..
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