*** F6 June 2013 Exam was… Post your comments ***

<cite>@dozen909 said:</cite>
Charlotte he was told the property under letting furnished

so in this case no property profit as utilized against the capital allowance

please help me for this
and also let me know how much to extend the banding 50,000 or not ?

Yes, if you extended John’s tax bands by £50k (£40k personal pension contributions only x 100/80) I think this is correct.

And we were told that John’s property did not qualify as a business under the furnished holiday lettings rules. Thus, the income became property income, or so I thought.

Unless you’re referring to the last question, where Phil received the house and let it out…?

<cite> @charlotteo said:</cite>
I am pretty sure you’d just extend the tax bands by a grossed up £40k and not £80k. This is because you only extend tax bands by personal pension contributions and we already worked out that this was £40k. The current year £40k you mention is made up on the employee and employer contributions into an occupational scheme, rather than a personal one.

I can’t remember how much my mileage variance was, but I think it was higher than £717. The 60p that was paid per mile for the ordinary commute was entirely taxable because the ordinary daily commute is not business mileage and so does not qualify for the 45p tax free relief per mile. So it was a case of the travel between Surf and clients, and the travel between home and the clients, being the only 2 lots of the 3 lots of mileage that could have any element of tax free allowance.

yep, i did the same with the mileage.

he had claimed something like 5,200 miles at 60p per mile – something like £3,120

however, only 2 of the 3 listed things were allowed to be claimed, so it was actually something like 3,400 miles at 45p – £1,530.

he had been paid too much in relation to his miles (the expense he claimed) – so i put the extra that he was paid through as income.

also, i only realised right at the last minute that the car benefit was only for 5 months (i think, might have been 7?) and not the full year

<cite> @charlotteo said:</cite>
in Q1, there was a married couple (John and Rhonda).

Did anyone split the property income 50/50 between them? I decided not to as the questions said the property was owned by John, but I was not sure as why else were we told that they were married? It didn’t seem to have any impact on anything, if not the property income?

as far as I know you only split 50:50 for joint income….in this case it was just his

<cite>@andydu1991 said:</cite>
Yeah i got a repayable figure in the 400’s i think

I left the interest as it was since it was already grossed up, if it was net it would of been 100/80 to get it to the gross amount i think.

I had £10k per a year of pension contribution unused but took the whole five years instead of three. The stupid thing is when i read through it the first time i though it would only be three but when i did it i forgot -_-

Im not sure weather the above is right though but thats what i did 😛

we were asked for income tax liability not income tax payable…..no?

Can anyone tell me on Question 2 for VAT was it already Exclusive or we had to do x20% ?? It did not say apart from one of the questions it said inclusive i think scale charge. And irrevocable amount was 5 months and 6 months not pass so not recoverable??

Also the capital allowance said (cost was already included previously was this included in the TWDV? ) so how did people do there capital allowance for question 2?? I just took the sale figures proceeds and ignored the cost.?
Please help 🙂

Hope its not stupid question 🙂

<cite> @charlotteo said:</cite>
I would say yes, deduct the occupational pension contribution from his salary in the employment income working (only his contribution, not his employer’s) as this is a tax free benefit.

And because his personal pension contribution was £40k, yes, you’d add a grossed up amount of £50k when extending the tax bands.

wasnt it 40000 we had to extend basic rate band by?

i always think i have done “ok” until i read the comments on here lol

<cite> @atab said:</cite>
I calculated it as 10000 x 2.4 = 24,000 cost
annual exemption = 10,600
24,000 + 10,600 = 34,600
34,600 / 4 = 8,650 shares (in order to avoid incurring a gain)

That’s exactly what I got. Hope it right!!

Did anyone use the NRB given in question 5? I didn’t as I was a PET and not a CLT.

<cite> @vipulv said:</cite>
Can anyone tell me on Question 2 for VAT was it already Exclusive or we had to do x20% ?? It did not say apart from one of the questions it said inclusive i think scale charge. And irrevocable amount was 5 months and 6 months not pass so not recoverable??

Also the capital allowance said (cost was already included previously was this included in the TWDV? ) so how did people do there capital allowance for question 2?? I just took the sale figures proceeds and ignored the cost.?

Please help 🙂

For the VAT question the examiner actually gave us the output VAT…..he did not give us the sales figure so there was no need to calculate the VAT on the sales figure….he gave us the amount of VAT calculated on the sales

Confused – no I didn’t use it as it was a PET. I did at first and then realised it was wrong.

<cite> @oldc02 said:</cite>
Confused – no I didn’t use it as it was a PET. I did at first and then realised it was wrong.

I am hundred percent sure that NRBs are used on PETs!

<cite> @dannyw1984 said:</cite>
i always think i have done “ok” until i read the comments on here lol

Same as lol!