income tax

Elsa is employed by Bee Ltd. During the tax year 2018-19, Bee Ltd provided Elsa with the following benefits: (1) A private gym membership (2) A contribution of £1,800 into Elsa's private pension scheme Elsa had use of the private gym membership throughout the tax year. The normal membership fee is £1,000, but Bee Ltd negotiated a discount and paid £900 for it.

What amount of class 1A national insurance contributions (NICs) are payable by Bee Ltd in respect of Elsa for the tax year 2018-19?

• 124

• 138

• 373

• 386

In which of the following cases must an appeal be made directly to the Tribunal?

• A company appealing against a penalty for late filing of a corporation tax return

• A company appealing against a penalty for late filing of employer year end returns

• An individual appealing against a penalty for late registration for value added tax (VAT)

• An individual appealing against a penalty for late payment of capital gains tax

Dennis has made a deliberate error in his self-assessment tax return for the tax year 2018/19.

What is the time limit for HM Revenue & Customs (HMRC) to issue a discovery assessment?

• 5 April 2020

• 5 April 2023

• 5 April 2025

• 5 April 2039

In the tax year 2018/19 Susie receives employment income of £170,000. She made a gross gift aid donation

of £10,000 in January 2019.

What is Susie's income tax liability for the tax year 2018/19?

• £60,100

• £62,100

• £59,600

• £54,360

In which ONE of the following ways can overlap profits be relieved?

• Against first available current year basis profits

• Against trading income on cessation

• Against general income of the tax year of commencement and/or the preceding tax year

• Against general income in the three tax years preceding the year of commencement

Humphrey is a sole trader who has been trading for a number of years. Humphrey incurred a trading loss in the tax year 2017–18. He wishes to make a claim to offset this loss against his total income of the tax year 2016–17.

What is the deadline for Humphrey to claim this relief?

• 31 January 2019

• 31 January 2020

• 5 April 2021

• 5 April 2022

Ella started in business as a sole trader on 6 November 2018 and prepared her first set of accounts to

5 April 2019. On 6 December 2018 she acquired plant at a cost of £95,000.

What are the maximum capital allowances that Ella can claim for the period of account to 5 April 2019?

• £68,367

• £85,433

• £84,208

• £95,000

Luke rents out a room in his own residence throughout 2018/19. The rent is £150 a week. Luke's expenses

of the letting are £20 per week, none of which is loan interest on the property.

What is the amount of property business income taxable on Luke for 2018/19 if he makes any relevant

election?

• £6,760

• £0

• £7,800

• £300

Hana was UK resident in the tax year 2016-17. He worked full-time in Egypt throughout the tax year 2017-18.

What is the maximum number of days which Hana can spend in the UK and be treated as automatically not resident in the UK for the tax year 2017-18?

• 15

• 45

• 90

• 182

Susie rents out a furnished house. The house does not qualify as a furnished holiday letting. The furnishings

include a new sofa which was bought in the tax year 2018/19 to replace an old one which was disposed of at

the same time. The old sofa cost £3,000 in 2008 and was disposed of in January 2019 for proceeds of £200.

The new sofa was bought in January 2019 for £5,500 and was larger than the old one. If Susie had bought a

newer sofa of the same model as the old one it would have cost £4,000.

What deduction against property business income can Susie claim for the cost of the sofa bought in

2018/19?

• £5,500

• £3,800

• £5,300

• £4,000