B Tax Adjusted Profit Walkthrough Flashcards
1
Q
Advice on labour contracts paid 3 years prior to setting up a business (Allowable or disallowable)?
A
Allowable, not added back
2
Q
Advertising costs incurred in the 6 months prior to setting up a business (Allowable or disallowable)?
A
Allowable
3
Q
Legal fees on a building to be converted to a shop for trading incurred 2 years prior to setting up a business (Allowable or disallowable)?
A
Disallowable
4
Q
Capital allowances on a car that was purchased 6 years ago and is now used in the business (Allowable or disallowable)?
A
Allowable
5
Q
When are legal fees allowable?
A
When they are revenue based, not capital
6
Q
Wages and salaries (Allowable or disallowable)?
A
Allowable if fair
7
Q
Heat and light (Allowable or disallowable)?
A
Allowable
8
Q
Motor expenses (Allowable or disallowable)?
A
Allowable
9
Q
Genuine repairs (Allowable or disallowable)?
A
Allowable
10
Q
Cost of replacing asset or significant expenditure (Allowable or disallowable)?
A
Disallowable
11
Q
Incidental costs (e.g. legal expenses) for non-current assets (Allowable or disallowable)?
A
Disallowable
12
Q
Incidental costs (e.g. legal expenses) of renewing an existing short lease (50 or fewer years) (Allowable or disallowable)?
A
Allowable
13
Q
Staff entertaining (Allowable or disallowable)?
A
Allowable
14
Q
Gifts which bear an advertisement for the business, cost <£50 and aren’t food, drink or tobacco (Allowable or disallowable)?
A
Allowable
15
Q
Donations to political parties (Allowable or disallowable)?
A
Disallowable
16
Q
Small donations to local bodies (Allowable or disallowable)?
A
Allowable
17
Q
Business portion of leasing costs (Allowable or disallowable)?
A
Allowable
18
Q
Private portion of leasing costs (Allowable or disallowable)?
A
Disallowable
19
Q
Leasing costs of a car with CO2 emissions exceeding 50 grams/km (Allowable or disallowable)?
A
Disallowable by adding back 15% of the leasing costs
20
Q
Accountancy fees for preparing an individual’s personal tax return (Allowable or disallowable)?
A
Disallowable
21
Q
Accountancy fees for preparing the business accounts (Allowable or disallowable)?
A
Allowable
22
Q
Legal fees in connection with capital expenditure (Allowable or disallowable)?
A
Disallowable
23
Q
Legal fees in connection with capital expenditure in the renewal of a short lease (50 or fewer years) (Allowable or disallowable)?
A
Allowable
24
Q
Legal fees of a revenue nature in connection with any trade purposes (Allowable or disallowable)?
A
Allowable
25
Costs incurred by a sole trader in travelling from home to workplace (Allowable or disallowable)?
Disallowable
26
Other business travel expenses (Allowable or disallowable)?
Allowable
27
Subsistence costs (Allowable or disallowable)?
Disallowable
28
Expenses incurred by a sole trader on subsistence while travelling for business purposes (Allowable or disallowable)?
Allowable
29
Telephone expenses or motor expenses (Allowable or disallowable)?
Private use is disallowable, business use is allowable
30
The cost of setting up a website (Allowable or disallowable)?
Disallowable
31
The costs of updating the website (Allowable or disallowable)?
Allowable
32
Fines and penalties (Allowable or disallowable)?
Disallowable
33
A parking fine for an employee incurred while on business (Allowable or disallowable)?
Allowable
34
Costs resulting from fraud by proprietors (Allowable or disallowable)?
Disallowable
35
The cost of petty theft and pilferage not covered by insurance (Allowable or disallowable)?
Allowable
36
Impairment losses on non-trade debts (e.g. write-off loans) (Allowable or disallowable)?
DIsallowable
37
Impairment losses on trade debts (Allowable or disallowable)?
Allowable
38
Interest payable on loans taken out for non-trade purposes (Allowable or disallowable)?
Disallowable
39
Interest payable on loans taken out for trading purposes (Allowable or disallowable)?
Allowable
40
Cash withdrawn by a proprietor of an unincorporated business that constitutes remuneration (Allowable or disallowable)?
Disallowable
41
Remuneration of a company director (Allowable or disallowable)?
Allowable
42
Personal use (by proprietor of an unincorporated business) of business assets (Allowable or disallowable)?
Disallowable
43
Personal expenses of a proprietor of an unincorporated business paid by the business (Allowable or disallowable)?
Disallowable
44
Private element of rent? (Allowable or disallowable)?
Disallowable
45
Council tax? (Allowable or disallowable)? Job-related
Disallowable
46
Personal pension contributions (Allowable or disallowable)?
Disallowable
47
Redecoration of private rooms (Allowable or disallowable)?
Disallowable
48
New fittings for shop (Allowable or disallowable)?
Disallowable
49
Selling price of received goods for his own use? (Allowable or disallowable)?
Disallowable
50
Running costs of motor expenses (Allowable or disallowable)?
Allowable
51
Business rates (Allowable or disallowable)?
Allowable
52
Profit on sale of machinery?
Deducted
53
Savings income?
Deducted
54
Capital allowances?
Deducted
55
Debt collection (Allowable or disallowable)?
Allowable
56
Professional subscriptions to approved bodies (Allowable or disallowable)?
Allowable
57
Payroll gift to charity (Allowable or disallowable)?
Allowable
58
Contributions to an occupational pension scheme (Allowable or disallowable)?
Allowable
59
Entertaining which is treated as allowable by the employer (Allowable or disallowable)?
Disallowable
60
Travelling from home to a temporary workplace? (Allowable or disallowable)?
Allowable
61
When mileage allowance received - statutory amount is positive?
It is assessable
62
When mileage allowance received - statutory amount is negative?
It is allowable
63
Entertaining which is treated as disallowable by the employer (Allowable or disallowable)?
Allowable
64
Use of own car for business purposes (Allowable or disallowable)?
Allowable
65
Working from home (Allowable or disallowable)?
Allowable
66
Expenses tainted by duality of purpose (Allowable or disallowable)?
Disallowable
67
The costs of training to obtain a professional qualification where
paid by the employee themself (Allowable or disallowable)?
Disallowable
68
Cost of clothes for work (Allowable or disallowable)?
Disallowable
69
Golf membership?
DisallowIable
70
Interest paid?
Allowable
71
Entertainment expenses to customers?
Disallowable
72
Depreciation?
Disallowable
73
Interest received?
Deductible
74
Chaffeur?
Disallowable
75
Item less than £50?
Allowable
76
Pension lump sum in employment income?
Allowable
77
Council tax?
Allowable
78
Letting fees (property)
Allowable
79
Insurance (property)
Allowable
80
When expense is a capital cost (property)
It is not allowable
81
Water charges (property)
Allowable
82
council tax (residential property)
Allowable
83
Business rates (commercial property)
Allowable
84
Repairs of a revenue nature
Allowable
85
Payroll gifts to charity (employment)
Allowable
86
Employee contributions into occupational (employment)
Allowable
87
Susbcription to professional bodies (employment)
Allowable
88
Repairs when the purchase price was discounted?
Disallowable
89
A contribution into an employer’s occupational pension scheme?
Allowable
90
A charitable donation made under the payroll deduction scheme?
Allowable
91
What haoppens with selling proce of goods taken for own use?
Disallowed (added back)ded back but it's not disallowable expenditure
92
What happens with income not taxed as trading income?
Deducted
93
What happens with additional expenditure not already included in accounts?
Deducted
94
Allowable deduction for the short lease premium paid?
Income element of lease premium / Length of the lease
95
Capital expenditure (allowed/disallowed)?
Disallowed
96
Accounting estimates (allowed/disallowed)?
Disallowed
97
Revenue expenditures constituting an appropriation of profit by a proprietor rather than a business expense (allowed/disallowed)?
Disallowed
98
Genuine repairs? (Allowable/disallowable)
Allowable
99
The cost of replacing the entirety of an asset or making a significant alteration or improvement to an asset? (Allowable/disallowable)
Disallowable
100
Repairs to newly-acquired second-hand assets where the purchase price is reduced to account for dilapidations (Allowable/disallowable)
Disallowable
101
Asset is not capable of trading use before the repairs are completed (Allowable/disallowable)
Disallowable
102
Incidental costs (e.g. legal expenses) incurred in attempts to acquire non-current assets (aborted or non-aborted) (Allowable/disallowable)
Disallowable
103
Replacing part of an asset (Allowable/disallowable)
Allowable
104
Subscriptions not trade or professional (Allowable/disallowable)
Disallowable
105
Subscriptions for trade or professional (Allowable/disallowable)
Allowable
106
Staff entertaining? (Allowable/disallowable)
Allowable
107
Business free samples? (Allowable/disallowable)
Allowable
108
Gifts that cost <£50 per donee per year? (Allowable/disallowable)
Allowable
109
Gifts to employees? (Allowable/disallowable)
Allowable
110
Donations to political parties? (Allowable/disallowable)
Disallowable
111
Donation wholly and exclusively for trading purposes? (Allowable/disallowable)
Allowable
112
Business portion of leasing costs? (Allowable/disallowable)
Allowable
113
Leasing costs of a car with CO2 emissions exceeding 50 grams/km? (Allowable/disallowable)
15% is disallowed
114
Accountancy fees for preparing an individual’s personal tax return? (Allowable/disallowable)
Disallowable
115
Accountancy fees for the preparation of the business accounts? (Allowable/disallowable)
Allowable
116
Accountancy fees incurred in dealing with an HMRC enquiry? (Allowable/disallowable)
Disallowable
117
Legal fees in connection with capital expenditure (Allowable/disallowable)?
Disallowable
118
Legal fees in the renewal of a short lease (Allowable/disallowable)?
Allowable
119
Legal fees of a revenue nature in connection with any trade purposes (Allowable/disallowable)?
Allowable
120
Costs incurred by a sole trader in travelling from home to workplace (Allowable/disallowable)?
Disallowable. But other travelling expenses are generally allowable
121
Subsistence costs not wholly and exclusively for the purposes of the trade (Allowable/disallowable)?
DIsallowable
122
Telephone expenses or motor expenses (Allowable/disallowable)?
Private use is disallowed
123
Cost of setting up a website (Allowable/disallowable)?
Disallowable
124
Costs of updating the website (Allowable/disallowable)?
Allowable
125
Costs resulting from fraud by proprietors (Allowable/disallowable)?
Disallowable
126
Cost of petty theft and pilferage not covered by insurance (Allowable/disallowable)?
Allowable
127
Impairment losses on non-trade debts (Allowable/disallowable)?
Disallowable
128
Impairment losses on trade debts (Allowable/disallowable)?
Allowable
129
Interest payable on loans taken out for non-trade purposes (Allowable/disallowable)?
Disallowable
130
Interest on late paid tax (Allowable/disallowable)?
Disallowable
131
Interest payable on loans taken out for trading purposes (Allowable/disallowable)?
Allowable
132
Letting agent fees (allowable/disallowable)?
Allowable
133
SBA (allowable/disallowable)?
Allowable
134
Interest paid is deducted in income tax computation?
After non-savings and savings
135
Workplace nursery (allowable/disallowable)
Allowable
136
Use of employer's asset is employment tax working?
Mutliply value by 20%
137
Legal fees in conenction with acquisition of a freehold building (allowable/disallowable)
Disallowable
138
Motor expenses for private use (allowable/disallowable)?
Disallowable
139
Motor expenses for business use (allowable/disallowable)?
Allowable
140
Health club membership (allowable/disallowable)?
Disallowable
141
Leasing costs?
Deducted
142
When is a beneficial loan exempt?
When it doesn't exceed £10000
143
Is salary time apportioned?
FUCKING YES
144
Class 1 employee %?
12% where upper limit £50270, includes PA
2%
145
Class 1 employer %?
13.8%, lower limit is £9100
146
Class 4 %?
9% where upper limit £50270, includes PA
2%
147
Company van benefit?
£3960, and is time apprtioned
148
Benefit of living accommodation is higher of?
Annual value and rent paid
149
How long can unused pension allowances be carried back for?
3 years
150
What happens with gross pensino contributions?
Adjust the rate limits and are deducted to get the ANI
151
Excess subject to annual allowance tax charge calculation?
Contributions - unused annual allowance
152
Use of office (allowable/disallowable)?
Allowable
153
Benefit for use of an asset calculation?
Amount * 20% * time apportion
154
What is exempt in job related accommodation?
Annual value and additional charge
155
Council tax in job related accommodation (allowable/disallowable)?
Disallowable
156
Council tax in non job related accommodation (allowable/disallowable)?
Allowable
157
What is the employment allowance?
£5000
158
Where is employment allowance not available?
If a director is the only employee with earnings subject to Class 1 NI
Business whose total employer NIC liability in the previous tax year was over £100,000
159
Entertainment expenses for customers?
Disallowable
160
Private car expenses?
Disallowable
161
Entertainment expenses for staff?
Allowable
162
Donation to local school fair in exchange for advertising?
Allowable
163
Pre-trading expenditure more than seven years?
Disallowable
164
Pre-trading expenditure seven years or less?
Allowable
165
Decorating restaurant?
Allowable
166
Decoratinmg apartment when apartment was in a usuable state when it was purchased?
Disallowable
167
Cost of running a car used by an employee?
Allowable
168
Cost of running a car by who's doing the tax computation?
Private journeys disallowed
169
Loan to employees written off?
Disallowable
170
Impairment losses wholly and exclusively for business purposes?
Allowable
171
Impairment loss for a trade debt?
Allowable
172
Cost of initial repairs on a warehouse?
Disallowable
