REVISION MOCK :
1 SONIA SILVA
Key answer tips
This question is typical of question one in the F6 exam. It involves both self-employmentand employment, and tests capital allowances, cessation of trade, employment benefits,property income, savings income and the calculation of income tax payable. This is a verybroad coverage of the syllabus areas tested in question one, and therefore nothing is testedin great depth.The key to answering this question well is time management to ensure you can cover all theparts of the question.As there is quite a lot of information in this question, it is useful to annotate theinformation before starting to write, and then to tick off each item as you deal with it inyour answer.(a)
Trading income assessment – 2010/11
Closing year - basis period6.4.10 to 31.8.10(£56,050 tax adjusted trading profit + £7,410 (W1) balancing charge) £63,460 –––––––
The profits for Sonia’s final period of trade have already been adjusted, but are beforecapital allowances. As Sonia had a balancing charge in her final capital allowancecomputation (see working 1), this figure is
to her final period profits.The question states that Sonia has no overlap profits brought forward. This makes sense asSonia has always prepared her accounts to 5 April, and this is the only accounting datewhich will not generate any overlap profits.