Tips for ACCA Paper F6 “Taxation” (UK)

Open Tuition

F6 is very predictable so no tips as such Practise as many exam standard questions as you can. Make sure you do to time.
After the 15 minute reading time you have 1.8 minutes per mark. If a question is split between part (a) 10 marks and part (b) 10 marks then only spend 18 minutes on part (a) and then move on to part (b).
Look at all the requirements of the question, can you answer an easy parts first, for example one part maybe standalone and on something very straightforward, so do this part first You do not have to answer the questions in the order they are set, if question 5 is the easiest do this one first.
Question 3 will be the hardest so leave this until last but make sure you leave 36 minutes to answer it. Do not panic if you can’t remember something in a question, don’t spend too much time trying to remember it, have a go or even guess. Then you can move on to other parts of the question. Above all you need 50% to pass, so find the marks you can do. There will always be more than 50% of the question which is examining core areas of the syllabus, only a few marks will be fringe areas, but you do not have to worry about these as you can find the 50 marks you need to pass.

Question 1 will test income tax with maybe a VAT section attached as a separate part. The income tax will focus on a self employed individual with property income and some investment income. The VAT section could look at calculation of VAT payable, penalties and special schemes.
Question 2 will test corporation tax and could involve a long period of account, capital allowance computations for plant and machinery, computation of corporation tax payable and payment of tax.
Question 3 will test capital gains tax from an individuals’ perspective. This question will involve a number of different disposals involving entrepreneurs’ relief, part disposals, chattels and shares with a computation of capital gains tax payable. It is possible this question could alternatively involve a company disposing of shares.
Question 4 & 5 will test anything else. Possible topics that may be examined here are:
- commencement, cessation and change of accounting date rules for sole traders and partnerships
- inheritance tax testing the inheritance tax liabilities on lifetime gifts and as a result of the individual’s death.
- Group relief
- Overseas aspects of corporation tax
- Self assessment system
- Badges of trade
- Corporation tax loss relief
Kaplan tips
Income tax
Husband and wife
Joint investment income
Adjustment of profits
Income tax trading loss
Corporation tax
Capital allowances including IBA
Penalties for late filing of return
Interest on late payment of corporation tax
VAT return – including some discounts and impaired debts relief
Cash accounting scheme/Flat rate scheme
First Intuition
Resident status
BIKS and employment v self employment
Badges of trade
Adjustment of profits
Basis periods – change of year end
Capital allowances
Property profit
Income tax computation
Corporation tax with group relief
CGT – chattels, PPR, rollover relief, gift relief
NI – Class 1,2 and 4
VAT – cash accounting, default surcharge
Payments on account
•Adjustments to accounting profits to calculate income tax of a sole trader.
•Corporation tax basic groups.
•Chargeable gains for individuals or companies.
•Accounting for VAT, including registration dates.
•Income tax losses.
• Income tax comprising employment income (including bank interest and dividends –remember to gross up at 20% and 10% respectively) and trading income. Possibly husband and wife scenario or individual that has both employment and trading income. Additional rate taxpayer and/or PA restriction.
• Employment income to include accommodation, car and fuel benefit with provision of benefit part way through the year (apportion the benefit)
• Adjustment of trading profits
• Calculation of corporation tax with a marginal relief calculation.
• Capital allowances calculation (including AIA, special rate pool and 100% FYA on low emission cars).
• Inheritance tax on lifetime gifts and as a result of the individual’s death.
• Capital gains reliefs including PPR, rollover, gift relief and entrepreneurs’ relief.
• Corporation tax group relief.
• VAT –VAT payable and special schemes

  • Digg
  • StumbleUpon
  • Reddit
  • RSS


Post a Comment