Osborne Workbook

Question 1

For adjusting trading profits - are directors salaries allowable or do you add back?

Answer 1

Allowable.

No adjustment required

Question 2

How do you handle a trading loss in terms of carrying it back to previous year?

Answer 2

Can do but must first set loss against Investment gains and chargeable gains in current year

Question 3

Does the following count as Plant & Machinery for Capital Allowance purpose?

Car for employee private use?

Answer 3

Yes it does qualify

Question 4

Does the following count as Plant & Machinery for Capital Allowance purpose?

Payments for vehicle on operating lease?

Answer 4

No - does NOT qualify

Question 5

Does the following count as Plant & Machinery for Capital Allowance purpose?

Buildings?

Answer 5

No - does NOT qualify

Question 6

Does the following count as Plant & Machinery for Capital Allowance purpose?

Equipment bought through Hire Purchase?

Answer 6

Yes - this qualifies

Question 7

What allowance for Zero emission goods vehicle

Answer 7

100% FYA

Question 8

For a sole trader - is Salary & NIC of business owner an allowable deduction?

Answer 8

NO - it’s drawings

(Ltd COMPANY director salaries are .. just think of own experience.. pay salary & pension deductible but dividends are not)

Question 9

For the share pool table using indexing what is best way to do?

Answer 9

1. “Indexation to..” lines - ONLY put index amt.
2. Don’t index Bonus lines - put in ZEROs
3. ‘Subtotal’ line if appropriate B4 Index line. Think this wd only be after bonus line.
4. Do a ‘Total’ line B4 Disposal so it’s clear where the deductions are calculated.