Tax compliance

Question 1

How to calculate the effective rate of tax

Answer 1

Dividing total tax liability (including income tax and NIC) by total income

Question 2

Capital allowance treatment if business VAT recoverable

Answer 2

VAT- exclusive

Question 3

Capital allowance treatment if input VAT irrecoverable

Answer 3

VAT inclusive

Question 4

Structures and buildings allowance

Answer 4

offices, retail and wholesale premises, factories, warehouses excl land where entered contract in or after 29/10/2018

Question 5

Allowance for SBA

Answer 5

3% straight line

Question 6

Main pool

Answer 6

all machinery, fixtures, fittings, equipment, vans forklift trucks cars - Co2 emissions <50g/km

Question 7

FYA

Answer 7

technologically efficient hand dryers, NEW LOW emission cars , NEW zero emission goods vehicles, qualifying R&D capital expenditure, EV charging point

Question 8

AIA

Answer 8

Balance of expenditure after AIA received WDA and apply to lowest rate

Question 9

Special rate pool

Answer 9

Long life assets, integral features, thermal insulation and solar panels, Cars with CO2 emissions >50g/km

Question 10

Integral features are

Answer 10

electrical systems, cold water systems, ventilation systems, lifts, escalators, solar shading

Question 11

WDA small pool lmit

Answer 11

£1,000 for 12m and pro-rate

Question 12

Short life asset

Answer 12

for assets that are disposed within 8 yrs

Question 13

Balancing adjustment of cessation

Answer 13

deal with balances remaining after deduction of disposal

Question 14

WDA/FYA/AIA on cessation?

Answer 14

No

Question 15

Balancing charge

Answer 15

column becomes negative and increases profits

Question 16

Sale of structure or building claiming CA

Answer 16

Seller no balancing adjustment, base cost of asset reduced by SBAs claimed

Question 17

New owner of a building which has had SBA

Answer 17

new owner takes 3% of original cost for remainer of 33 1/3 yr period