• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

New! BPP Books for ACCA September 2022 Exams are now available, get your discount code >>

How important are steps in computation of Income and tax liability questions

Forums › ACCA Forums › ACCA TX Taxation Forums › How important are steps in computation of Income and tax liability questions

  • This topic has 4 replies, 3 voices, and was last updated 9 months ago by mrjonbain.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • September 19, 2021 at 2:53 pm #636015
    vjm6789
    • Topics: 19
    • Replies: 7
    • ☆

    Greetings,

    I have a question regarding computation of tax liability.

    I know the prescribed format for such questions are. Non-savings income Savings income and dividends

    However:
    What if you calculate Non-savings income in the proforma instead of calculating it in the workings?
    Will it cost you marks?
    The ultimate aim is to get the points on the sheet, right?
    If you have calculated them right, then it shouldn’t be a problem, if I am correct.

    September 23, 2021 at 2:17 pm #636365
    kish200
    • Topics: 22
    • Replies: 41
    • ☆☆

    Income Tax will be a major question in section C.
    That means you will need to show every working, every explanation and every thought process.
    The clearer your workings and final computation are the better.

    So the best thing to do is to have your computation take figures from your workings. Majority of your computation on the spread sheet should basically be linking to your workings so as to explain the computation easily and get you your unquestionable marks.

    Basically they are not really worried about the figure (though it carries a mark) the majority of marks comes from the workings and if the examiner cannot relate your answer to the available workings then you will lose marks.

    You need to answer in such a way that it is straightforward for the examiner to determine how you got Taxable Income or Net Income or Personal Allowance

    September 23, 2021 at 4:35 pm #636373
    mrjonbain
    Moderator
    • Topics: 1
    • Replies: 1216
    • ☆☆☆☆☆

    In addition to above, I would add make sure you include all your thinking on question. For example, say you are not including certain income as it is not taxable or is not a taxable benefit. Don’t just leave it off calculation.Hope this helps.

    September 30, 2021 at 3:44 pm #636773
    vjm6789
    • Topics: 19
    • Replies: 7
    • ☆

    I have already given the exam. Instead of writing the steps in the workings separately, I wrote them in the proforma space. Will that make much of a difference?

    October 1, 2021 at 9:26 am #636807
    mrjonbain
    Moderator
    • Topics: 1
    • Replies: 1216
    • ☆☆☆☆☆

    I think what you have done should be ok as long as it has been set out clearly. Hope this helps.

  • Author
    Posts
Viewing 5 posts - 1 through 5 (of 5 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate

If you have benefited from OpenTuition please donate.

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • mannannagpal on Sources of data – ACCA Management Accounting (MA)
  • mannannagpal on Sources of data – ACCA Management Accounting (MA)
  • John Moffat on Discounted Cash Flow Further Aspects, Lease versus Buy – ACCA Financial Management (FM)
  • John Moffat on The valuation of securities – The valuation of equity – ACCA Financial Management (FM)
  • John Moffat on Objectives of organisations – ACCA (AFM) lectures

Copyright © 2022 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy