Section A-All15questions are compulsory and MUST be attempted.
Plea u the space provide on the inside cover of the Candidate Answer Booklet to indicate your chon answer to each multiple-choice question.
Each question is worth2marks.
1.On May2014,Xi Qi’s taxable supplies during the past12months exceed£81,000and his expected taxable supplies for the next12months exceeds is no less than£79,000. However,He does not intend to register becau he thinks his net profit is insufficient to cover the additional cost which would be incurred.What would you do as a trainee Chartered Certified Accountant when facing such a situation?
poorer(1)Cea to act for him.
(2)Notify HM Revenue and Customs that you no longer act for Xi Qi.
(3)Inform HM Revenue and Customs about the issue.
(4)Make a report under the money laundering regulations.
A1,2and3clerk
B1,2and4
C1,3and4
D All of them
2.Eva is employed as an accountant.In2014/15,he incurs￡8,000on home to office travel,￡3,000on home to client travel,￡700on his professional membership and ￡950on office clothes.
What amount can Eva deduct in computing his employment income?
A￡3,700
B￡4,650
C￡6,500
D￡12,650
3.Jim is an employee of Jeep Ltd.Jim receives cash earnings of£30,000and a car benefit amounting to£9,000in the tax year2014–15.Jim is not contracted out of the state pension scheme.
How much class1(employee)national insurance contributions(NIC)does Jim suffer in respect of the tax year2014–15?
A£2,645
B£2,805
C£2,850
D£3,860
4.Which of the following is not deductible when calculating the trading profits?
brutallyA.Legal fees in connection with court actions for not complying with certain law and legslations.
B.Legal fees to obtain loan finance for trading purpos.
ppap是什么意思C.Patent royalties paid.
D.legal fees to collect trade debts.
5.During the year ended31March2015MIX plc paid loan stock interest of£22,500.Loan stock interest of£3,700was accrued at31March2015,with the corresponding accrual at 1April2014being£4,200.The loan is ud for trading purpos.The company also incurred a loan interest expen of£6,800in respect of a loan that is ud for non-trading purpos.
What is the amount of loan stock interest can be deductible when calculating the trading profit?
A.£22,000
B.£26,200
C.£18,300
D.£22,500
6.On28April2014three acres of land were sold for￡100,000.Alex had originally bought eight acres of land on1May2012for￡200,000.The fair value of the unsold land on28April2014was￡150,000.
What is the chargeable gain on this disposal?
A.￡60,000
B.￡20,000
C.￡150,000
D.￡40,000
7.Which one of the following period can be the deem occupation period under the terms of Private Principle Residence relief?
A.The last18months of the ownership
B.Up to2years of abnce then rent the hou out
C.Period of working abroad
D.Period of working elwhere in the UK
8.On12August2014,Eden made a gift of a hou valued at£750,000to his son Felix. This figure is after deducting all available exemptions.How much is the inheritance tax liability arising from the gift in tax year2014-15?
A.£85,000
B.£170,000
C.£150,000
D.None
9.Jackie started her own small business since1January2015,in the quarter to30March 2015,her sales of standard rated goods for£5,000and a cash discount of3%is offered to attract customer.She also took some inventory for personal u,the goods cost£200 originally and would cost£220to replace,and both amounts are VAT excluded.
The amount of VAT due for the quarter ended30March2015is
A£1,040
B£1,044
C£1,014
D£970
10.Rain has been a sole trader for many years making up his accounts to31July each year.He cead to trade on31December2014.Richard’s most recent adjusted profits for tax purpos have been:
Year to31July2013£19,000
Year to31July2014£15,000
Five months to31December2014£6,000
He has unud overlap profits for earlier years amounting to£4,000.
What is Rain’s taxable trading profit figure for the tax year2014–15?
A£17,000finishdoing
B£14,000
C£21,000
D£3,000
11.Which one of the following is exempt income for individual income tax?
A Interest from Saving Certificates issued by National Savings and Investment Bank
B Interest from Individual Savings Accounts
C Building society interest
watch outD Interest from government stock
12.J ltd bought a factory in September1999for£385,000.In December2014,wishing to move to a more convenient location,J Ltd sold the factory for£750,000.Then J purchad and moved into a new factory in March2015.Indexation allowance from September1999to December2014is£273,000.What is the ba cost of the new factory if it was purchad for£700,000?
A.£50,000
B.£658,000
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C.£42,000
D.£700,000环保服装制作
13.Molten plc paid41,200for the construction of a new decorative wall around the company’s premis on31January2015.What is the amount of the capital allowance can be deductible?
A.£41,200
B.£3,296
C.£7,416
D.0
14.Which one of the following asts is qualifying for roll-over relief?
A.Private ud Motor carpiano怎么读
B.Boat
C.Restoration of damaged factory
D.Inventory
15.Webb made a gift of£800,000to a trust on25September2014.Webb paid the inheritance tax arising from the gift.How much is the inheritance tax Webb paid in tax year 2014-15?
A.£95,000
B.£118,750
C.£94,400
D.£117,250
Section B-All SIX questions are compulsory and MUST be attempted.
1.Flick Pick(TX06/12Q1)
On6April2014Flick Pick,born in1990,commenced employment with3D Ltd as a film critic.On1January2015,she commenced in partnership with Art Reel running a small cinema,preparing accounts to30April.The following information is available for the tax year2014/15:
Employment
(1)During the tax year2014/15Flick was paid a gross annual salary of£25,665.
(2)Throughout the tax year2014/153D Ltd provided Flick with living accommodation.The company had purchad the property in2005for£89,000,and it was valued at£144,000 on6April2014.The annual value of the property is£4,600.The property was furnished by 3D Ltd during March2014at a cost of£9,400.
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Partnership
(1)The partnership’s tax adjusted trading profit for the four-month period ended30April 2015is£29,700.This figure is before taking account of capital allowances.
(2)The only item of plant and machinery owned by the partnership is a motor car that cost £18,750on1February2015.The motor car has a CO2emission rate of190grams per kilometer.It is ud by Art,and40%of the mileage is for private journeys.
(3)Profits are shared40%to Flick and60%to Art.This is after paying an annual salary of £6,000to Art.
Property income
(1)Flick owns a freehold hou which is let out furnished.The property was let throughout the tax year2014/15at a monthly rent of£660.
(2)During the tax year2014/15Flick paid council tax of£1,320in respect of the property, and also spent£2,560on replacing damaged furniture.
Flick claims the wear and tear allowance.
Required
(a)Calculate Flick Pick’s taxable income for the tax year2014/15.(12marks)
(b)State what class of national insurance contribution will be paid in respect of Flick Pick’s income for the tax year2014/15,and in each ca who is responsible for paying them.
Note:
You are not required to calculate the actual national insurance contributions.
(3marks)
(15marks)
