Various

Question 1

Fundamental ethical principles

Answer 1

Professional behaviour
Objectivity
Professional competence & due care
Integrity 
Confidentiality

Question 2

Threats to fundamental principles

Answer 2

Self interest 
Self review
Intimidation 
Familiarity
Advocacy

Question 3

Professional conduct in relation to taxation (PCRT)

Answer 3

Client-Specific

Lawful

Disclosure & Transparency

Tax Planning Arrangements [mustn’t create, encourage or promote tax planning schemes that’re contrived]

Professional Judgement & Appropriate Documentarian

Question 4

Professional Indemnity Insurance

Answer 4

Min. = £1.5 million unless firms gross fee income is less than £600k

In which case, 2.5 x fee income (min. £100k)

Need to maintain for at least two years after ceasing to practice, preferably 6 years

Question 5

Data protection (GDPR)

Answer 5

Information Commissioners Office (ICO) needs to be notified within 72 hrs of breach. Non-compliance = £10m or 4% of global turnover fine.

Question 6

Senior Accounting Officer (SAO)

Answer 6

Required if turnover is greater than £200m or greater than £2b balance sheet

Appointed to certify accounting systems are adequate for tax reporting

Penalties c. 5k payable by the SAO individual

Question 7

Most tax efficient way to extract profits from a business

Answer 7

Set up as a company, pay yourself a salary of £8,636 (NI threshold); as this is tax-deductible in the company it reduces CT payable.

Then, take post-CT profits as a dividend

Use PA to reduce salary income to NIL, balance against dividend income

Use 2k NRB on dividend income

Balance is taxable

No NI on dividend income