*** F6 June 2012 Exam was… Comments and Instant Poll ***

Flat rate is NOT beneficial. The flat rate % is based on the GROSS turnover. This is the amount payable to HMRC. When you net off Input and Out put VAT, remember the figures included VAT! then this gave a lower tax payable!

@artursaliasi said:
jamesmichaeltucker said 1 minute ago:
Flat rate is NOT beneficial. The flat rate % is based on the GROSS turnover. This is the amount payable to HMRC. When you net off Input and Out put VAT, remember the figures included VAT! then this gave a lower tax payable!.

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Yep : That is correct

I reached that conclusion too.

@triniaccountant said:
This was much better than F5…though the lingering effects of frustration went into the exam with me…silly mistakes and all aside…it’s a pass for me 🙂 cause most marks are for formatting/workings not answer per se.

One thing…how do examiners expect us to be able to write so much for 3hrs back-to-back??? Writing hand started to get really tired in the exam and had to mentally PUSH myself to bear the pain and write…hope all was legible enuff! 🙂

Time for results now!
Thanks OT for all the help with F5&6 🙂

I agree, I noticed a blister appearing on my index finger for writing so much!

@artursaliasi said:
How did you tackle the furnished living accommodation on employment section?
benefit arising due to expensive accommodation (MV – £75,000) x 4%.

What about the furnitures supplied by the employer I think was approx 9K ? did any apply 20% to it? and on partnership his partner had an expensive car and he he was using for private journey and you had time apportion @ 10% to work out the capital allowance ?

I calculated the accommodation by the same method as you I think. Annual value, + (MV – £75,000) x 4%. I assumed it was the MV, because the property was acquired more than 6 years before being provided to employee (if I remembered that rule correctly).

How did you tackle the furnished living accommodation on employment section?
benefit arising due to expensive accommodation (MV – £75,000) x 4%.

What about the furnitures supplied by the employer I think was approx 9K ? did any apply 20% to it? and on partnership his partner had an expensive car and he he was using for private journey and you had time apportion @ 10% to work out the capital allowance ?
I calculated the accommodation by the same method as you I think. Annual value, + (MV – £75,000) x 4%. I assumed it was the MV, because the property was acquired more than 6 years before being provided to employee (if I remembered that rule correctly).
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Off Course the annual value as well , but what about the furniture ?

No there was the property’s annual value (which I now remember I didn’t include 🙁 ) then you add the MV (after 6yrs owned) -£75k) x4% (which I messed up n used 20%) <---That's additional benefit; then you add the 10% Furniture Benefit (cause that's the rate the employer gets it at)? Correct me if I'm wrong 🙁 TriniA

Well certainly dint remember i understand that wasvthe adding value to the property but i may have been mistaken as the exam was veeery long but if it is the case that was a furniture than it is a benefit to employee and should have been add 20 % of it. I guess i lost a mark there :(((

is terminal loss relief only on trading profits?

I meant against future trading profit

can any one plz tell me that Q.1 employment income? did he left the employment? i mean? did i made a mistake in reading question properly??? i thought he was employed through out the year so i took whole year salary!

I did 9 months salary on employment. But I don;t know…….as the question was not clear whether he left employment and went on to partnership….

Also regarding National insurance what did people write??

I wrote

Employee pays national insurance class 1
Employer class 1A

then in partnership are they not self employed so pay class 2 and 4?

it was a long exam and vey tricky – silly errors..will definetly count down the marks