Section A ALL TEN questions are compulsory and MUST be attempted 1.

. Which one of the following is not statutory legislation? A Capital Allowances Act 2001 B Extra Statutory Concession A1 C Income Tax (Trading and Other Income) Act 2005 D Statutory Instrument 2008/2682 2. Which one of the following is not business travel for the purpose of an income tax expense claim? A Travel to visit a client B Travel from home to a temporary place of work C Travel to and from a permanent place of work D Travel to visit a trade fair relevant to the employers business December 2009 he received a bonus of 8,000. What were Jimmys national insurance contributions (NIC) for December 2009? A 1,157 B 423 C 110 D 1,210
4. Peter is a sole trader preparing accounts to 31 December each year. For the tax year

3. Jimmy is an employee earning 36,000 a year, payable in equal monthly amounts. In

200809 he submitted his tax return on 14 February 2010. By which date must HM Revenue and Customs (HMRC) give written notice of their intention to commence an inquiry? A 31 December 2010 B 31 January 2011 C 14 February 2011 D 30 April 2011
5. A company has the following expenses in its profit and loss account:

Legal fees for the purchase of a new building 800 Legal fees for defending an action for faulty goods 1,500 Entertainment of staff (the company has 20 employees) 3,200 Patent royalties in connection with the companys trade 1,000

How much must be added back to the companys accounting profit when computing the tax adjusted trading profit? A 2,300 B 800 C 4,000 D 5,000 6. Marcus is employed by A plc at a salary of 30,000 a year. He is provided with a car available for private use for 2009/10. The car has CO2 emissions of 158g/km and a list price of 20,000. The car has a diesel engine. No private fuel is provided. What is the taxable car benefit? A 3,000 B 3,800 C 4,400 D 4,600 7. How is higher rate tax relief given for a Gift Aid donation? A The donation is deducted from total income B The donation is treated as paid net of higher rate tax C The basic rate band is extended by the grossed up donation D No higher rate tax relief is given 8. Richard has been a sole trader for many years making up his accounts to 31 July each year. He ceased to trade on 31 July December 2009. Richards most recent adjusted profits for tax purposes have been: Year to 31 July 2008 Year to 31 July 2009 Five months to 31 December 2009 16,000 14,000 7,000

He has unused overlap profits for earlier years amounting to 4,000. What is Richards taxable trading profit figure for the tax year 2009/10? A 17,000 B 14,000 C 21,000 D 3,000

9. Joe and Rita have been in partnership for many years. Ajay joined the partnership on 1 January 2010, with profits being shared equally between the three partners. The partnership had a trading profit of 120,000 for the year ended 31 December 2010. On what profits will Ajay be assessed for 2009/10? A 10,000 B 30,000 C 40,000 D 120,000 10. Ella commenced trading on 1 January 2009 making up her first accounts for the 18 month period ended 30 June 2010. What is Ellas basis period for 2009/10? A 1 July 2009 to 30 June 2010 B 6 April 2009 to 5 April 2010 C 1 January 2009 to 31 December 2009 D 1 January 2009 to 5 April 2010