Computing Trading Income (Essential Reading) Flashcards
What is meant by the subject matter
Some assets are commonly held as ivnestments for their intrinsic value
What is meant by frequency of transactions?
Transactions of a capital nature will be interpreted as trading transactions where their frequency indicates that carrying on of a trade
Presence of a profit motive?
A strong indication that a person is trading
When is court ready to ascribe a trading motive?
When work is done to make an asset more marketable, or marketing steps are taken to find purchasers
What do fixed rate expenses relate to?
Expenditure on cars
Business premises partly used on the trader’s home
How can the fixed rate mileage expense be claimed?
In respect of cars which are owned or leased by business and which are used by an employee of the business
Appropriate mileage rates for cars for first 10000 miles?
45p per mile, then 25 per mile thereafter
When can a fixed rate monthlky adjustment be made?
Where a sole trader trader/partner uses part of the business premises as their home
How is fixed rate monthly adjustment deducted?
From actual allowable business premises costs to reflect private portion of household costs
Examples of household costs?
Food and utilities
Treatment for educational coursesfor staff in computing trading income?
Allow
Treatment for educational courses for trader in computing trading income?
Allowable to update existing knowledge
Treatment for removal expenses in computing trading income?
Allow
Treatment for travelling expenses to the trader’s place of business in computing trading income?
Disallow
Treatment for counselling services for employees leaving employment in computing trading income?
Allow
