TAX-Ch-9,10&11

Peter and Jane have been in partnership for many years preparing accounts to 31 March each year and sharing profits equally. On 1 September 2023, they changed their profit-sharing agreement so that Peter will be entitled to an annual salary of £9,000 each year and the remaining profits were then split two parts to Peter and three parts to Jane. The partnership made a trading profit of £96,000 in the year to 31 Mar 2024.

What is Peter's taxable trading profit for the tax year 2023/24? (Rounded to nearest £)

• 45550

• 46560

• 49856

• 56489

Peter and Jane have been in partnership for many years preparing accounts to 31 March each year and sharing profits equally. On 1 September 2023, they changed their profit-sharing agreement so that Peter was entitled to a salary of £9,000 each year and the remaining profits were then split two parts to Peter and three parts to Jane. The partnership made a trading profit of £96,000 in the year to 31 Mar 2024.

What is Peter's taxable trading profit for the tax year 2023/24? (Rounded to nearest £)

• 50450

• 50050

• 65490

• 65890

Robin and Stuart had been in partnership for any years preparing accounts to December each year and sharing profits equally. On 1 July 2023, Tania joined the partnership and profits were then split 2:2:1. The partnership made a profit of £112,000 in the year to 31 March 2024. The taxable trading profits of the Robin and Stuart for 2023/24. (Rounded to nearest £)

• 47600

• 48500

• 49600

• 50500

Robin and Stuart had been in partnership for any years preparing accounts to December each year and sharing profits equally. On 1 July 2023, Tania joined the partnership and profits were then split 2:2:1. The partnership made a profit of £112,000 in the year to 31 March 2024. The taxable trading profits of the Tania for 2023/24. (Rounded to nearest £)

• 16800

• 17900

• 18500

• 19500

Shona started in business on 1 January 2024 as a sole trader and prepared her first set of accounts for the 14 weeks to 5 April 2024. Her taxable trading profit for that period was £13,500.

What are Shona's total national insurance contributions for the tax year 2023/24? (Rounded to nearest £)

• 136

• 140

• 150

• 160

Mark has been in business as a sole trader for many years preparing accounts to 5 April. He made a trading loss of in the year to 5 April 2023 and has not made any claim in respect of this loss. In the year to 5 April 2024, he made a trading profit of £16,700.

What is Mark's Class 4 national insurance contributions for the tax year 2023/24? (Rounded to nearest £)

• 372

• 358

• 385

• 450

Elsa is employed by Bee Ltd. During the tax year 2022/23, Bee Ltd provided Elsa with the following benefits:

·    A private gym membership

·     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 2023/24? (Rounded to nearest £)

• 373

• 340

• 359

• 456

Sonya commenced self-employment as an architect on 1 June 2023. She prepared her first set of accounts for the 10 months to 31 March 2024 and annually thereafter. Prior to 1 June 2023 Sonya had been in employment.

Sonya’s total taxable income (after the personal allowance) for the tax year 2023/24 was £45,500 (trading income of £31,900 and dividend income of £13,600. In the tax year 2023/24 Sonya made a personal pension contribution of £1,200 (net).

In the tax year 2024/25 Sonya is expecting to make a trading loss due to investment in specialised design equipment. In the tax year 2024/25 she will have dividend income of £15,000 and realise a capital gain of £20,000.

Which of the following statements concerning the loss relief available to Sonya is correct?

• In the tax year 2024/25 Sonya could claim to offset the trading loss against either the dividend income or the capital gain.

• If Sonya makes a claim to offset the loss in the previous tax year it will be offset against her trading income only.

• The trading loss can be offset against total income in the tax years 2021/22, 2022/23 and 2023/24 in that order.

• If Sonya does not make a loss relief claim the trading loss will automatically be carried forward and offset against the first available total income.

You should assume that the current date is 6 April 2023.

Clara is setting up in business as a sole trader and will employ 12 individuals. including Burton, Jessica and Lewis. In addition to paging these three employees a salary. Clara will provide them with the following additional payments and benefits for the tax year 2023/24.

Burton will be required to travel on business in the UK and will be paid £8 per night to cover private incidental expenses if he stays away from home overnight. Burton will spend 50 such nights away from home. Burton will travel by train on business journeys and will spend €1,200 on train fares. This amount will be reimbursed in full by Clara.

Jessica will be required to attend Clara's office every working day and will be provided with workplace parking for which Clara will pay the car park provider £500 per year. Jessica will be provided with a place at a nursery in Clara's office for her one-year old son at a cost of £67 per week for 45 weeks.

Lewis will be provided with o compony van from 6 August 2023 which he will park overnight at home and use to travel to Clara's office every working day. He will also be allowed to use the van on non-working days. All fuel will be provided for the van. The van will have a petrol engine and CO2 emissions of 136g/km. It will have a list price of £15,000. For 2023/24, the van benefit charge is £3,600 and the van fuel benefit charge is £688.

Clara understands that she will need to operate the Pay As You Earn (PAYE) system for income tax and national insurance contributions (NICs). She will not be payrolling benefits.

Q. What is the total amount that Clara will report to HM Revenue G Customs (HMRC) on form

P11D for Burton for the tax year 2023/24?

• 400

• 650

• 500

• 700

You should assume that the current date is 6 April 2023.

Clara is setting up in business as a sole trader and will employ 12 individuals. including Burton, Jessica and Lewis. In addition to paging these three employees a salary. Clara will provide them with the following additional payments and benefits for the tax year 2023/24.

Burton will be required to travel on business in the UK and will be paid £8 per night to cover private incidental expenses if he stays away from home overnight. Burton will spend 50 such nights away from home. Burton will travel by train on business journeys and will spend €1,200 on train fares. This amount will be reimbursed in full by Clara.

Jessica will be required to attend Clara's office every working day and will be provided with workplace parking for which Clara will pay the car park provider £500 per year. Jessica will be provided with a place at a nursery in Clara's office for her one-year old son at a cost of £67 per week for 45 weeks.

Lewis will be provided with o compony van from 6 August 2023 which he will park overnight at home and use to travel to Clara's office every working day. He will also be allowed to use the van on non-working days. All fuel will be provided for the van. The van will have a petrol engine and CO2 emissions of 136g/km. It will have a list price of £15,000. For 2023/24, the van benefit charge is £3,600 and the van fuel benefit charge is £688.

Clara understands that she will need to operate the Pay As You Earn (PAYE) system for income tax and national insurance contributions (NICs). She will not be payrolling benefits.

Q. What is the total amount that Clara will report to HMRC on form PIID for Jessica for the tax year 2023/24?

• £nil

• £500

• £3,015

• £3,515