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Question 1

Accommodation - Employment Inc

Answer 1

Annual value
If older than 6yrs, add:
Interest % x (MV + renovations - £75k)

Question 2

Furniture in accommodation- Employment Inc

Answer 2

Cost x 20%

Asset for own use

Question 3

Employment of family member

Answer 3

Deduction allowable at same rate as other employees/reasonable for the work done

Question 4

Capital allowances: Sole trader, car for personal use

Answer 4

WDA 18%
PUA column
Allowance only business %

Question 5

Company car - Employ Inc

Answer 5

List price x co2 %

Co2 % (round normally)

Question 6

Cessation rules

Answer 6

Profit from penultimate tax year to cessation taxed - overlap profit

Question 7

Max pension contribution calc

Answer 7

1) a)Emoly inc + trading inc + furnished holiday letting (b) >3600)
2) annual allowance (£40k) + unused annual allowance b/f (last 3yrs, CY then FIFO)

Question 8

PPS

Answer 8

1) gross up x 100/80
2) extend BRB + HRB
- impacts ANI (PA child + benefit charge)
- impacts ATI (restricts losses against ‘other inc’)

Question 9

OPS

Answer 9

(already gross)

1, deduct from employment income

Question 10

Basis periods: Change in accounting period

Answer 10

1) tax yr of change, earlier of: new date or expected date
2) use CYB rules for TY before and years after
3) How many months not covered between before and after TYs?
>12m, use previous TY to make 12m
<12m, use overlap profits to make 12m
4) recalculate overlap

Question 11

Basis periods: 2nd tax yr

Answer 11

YE in TY? Yes:
<12m - tax 1st 12m
12m - CYB
>12m - tax last 12m
No: tax TY

Question 12

Partnership losses reallocated using…

Answer 12

ratio of current losses NOT partnership ratio

Question 13

Cash basis: stock for own use

Answer 13

use cash price

Question 14

Cash basis: interest allowed as an expense

Answer 14

£500 max

Question 15

Cost of land and buildings given separately…

Answer 15

SBA! if after 29/10/18

2% cost of building x n/12 x biz%

Question 16

Remittance basis

Answer 16

1) <2,000, unremitted inc, auto RB, have PA and AEA

2) >2,000, claim RB, no PA or AEA, have RBC

Question 17

Remittance basis charge

Answer 17

a) 7/9 TY = 30k
b) 12/14 TY = 60k
- add to IT lib at bottom

Question 18

State penision age

Answer 18

65+

does not pay NIC but ER does

Question 19

Marriage allowance

Answer 19

~ max £1250
~ unused spouse PA
~ x 20% = tax reducer + remove from IT lib

Question 20

Multiple supply

Answer 20

~ elements separate and clearly identifiable

~ invoiced together @ inclusion price for both elements (items split fair+reasonable manner)

Question 21

Single supply

Answer 21

~ part of supply is incidental to main element or better enjoyment
~ VAT of main element applied to whole