UEH UNIVERSITY MID-TERM EXAM QUESTIONS

SCHOOL OF ACCOUNTING PRINCIPLES OF TAXATION - 24C1ACC50722401

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Semester: I Academic year: 2024 – 2025

Paper no.: 01 Full-time/Part-time: Full-time
Class code:
Time: Date:
Form of Exam: Written
Duration: 60 minutes
(excluding paper distribution time)

Invigilator 1’s signature Full name: ……………………………………………. Grade (in number):

Date of birth: …………………….…………………. …………………

Student ID: ……………………….…………………. Grade (in words):

…………………
Class code: ………………………………………….. …………………
Invigilator 2’s signature
Module: …………………………..…………………. Examiner 1’s signature

Examination date: ….…………….…………….. …………………

………………… Examination time: …………….………………… Examiner 2’s signature

Paper No.: ………………………………………….. …………………

SECTION A. OBJECTIVE QUESTIONS (8.0 points; 25 questions; 0.32 points/question)

Question 1

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Question 2

Question 3

Question 4

Question 5

Question 6

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Question 7

Question 8

Question 9

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Question 10

Question 11

Question 12

Question 13

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Question 14

Question 15

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Question 16

Question 17

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Question 18

Question 19

Question 20

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Question 21

Question 22

Question 23

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Question 24

Question 25

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SECTION B. EXERCISES (2.0 points)
Matilda received £900 interest from an ISA during 2023/24.
Matilda has been employed part-time by ABC Ltd for many years. She received the following
remuneration package in 2023/24.
 Salary £15,000 per year;
 Flowers costing £30 on her birthday;
 Removal expenses of £1,000 when she relocated home for the job; and
 Use of company assets: a TV (market value £1,000) for 100% private use, and a mobile phone
(market value £200, annual contract of £250) for 50% private use.
Matilda received £100 of dividends in January 2024 from an overseas company.
Matilda has also run her own business as a sole trader for many years. Matilda has calculated her
taxable trading profits for 2023/24 to be £14,000. In arriving at her taxable trading profits, Matilda
deducted the following amounts.
 £200 in respect of the purchase of goods which Matilda then removed from the business for her
own use, without recording this withdrawal. The goods could have been sold for £300;
 £110 depreciation of computer equipment;
 The cost of trade samples totalling £500 given to local customers; and
 £1,500 in respect of the lease of car with CO2 emissions of 42 g/km. Matilda used the car 30% for
private use.
Requirement
Using the standard format below, compute Matilda's taxable income for 2023/24. You should enter
a number in each relevant box. If an amount is not taxable enter a zero or a dash into the relevant box.
Non-savings Savings Dividend
income income income
£ £ £
Trading Income (W1)
Employment income (W2)
ISA interest
Dividends
Net income
Personal allowance
Taxable income
W1 – Trading income
£
Trading profits
Goods
Depreciation
Samples
Lease
Tax adjusted trading profits

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 W2 – Employment income
£
Salary
Flowers
Removal expenses
Assets
Total employment income

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--------------------------------------End of test--------------------------------------
Note: - This paper contains 25 questions from Section A, 01 exercise from Section B, 11 pages.
- Students are NOT allowed to use materials during the examination.
- Invigilators shall not provide further explanation.

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ICAEW – Certificate Level Tax Tables
FA2023
SYLLABUS AREA: INCOME TAX & NIC
INCOME TAX RATES: 2023/24 Rate Taxable income band
Main rates
Basic rate 20% £1 – £37,700
Higher rate 40% £37,701 – £125,140
Additional rate 45% Over £125,140
Savings rates
Starting rate for savings 0% £1 - £5,000
Savings income nil rate 0% First £1,000 or £500
Savings basic rate 20% Otherwise chargeable at basic rate
Savings higher rate 40% Otherwise chargeable at higher rate
Savings additional rate 45% Otherwise chargeable at additional rate
Dividends rates
Dividend nil rate 0% First £1,000
Dividend ordinary rate 8.75% Otherwise chargeable at basic rate
Dividend upper rate 33.75% Otherwise chargeable at higher rate
Dividend additional rate 39.35% Otherwise chargeable at additional rate
Default rates
Default basic rate 20%
Default higher rate 40%
Default additional rate 45%

INCOME TAX RELIEFS 2023/24

Personal allowance(1) £12,570
Marriage allowance(2) £1,260

(1) The personal allowance of any individual with adjusted net income above £100,000 is reduced by £1 for
every £2 of adjusted net income above the £100,000 limit.

(2) A spouse or civil partner who is a basic rate taxpayer or who has income of less than the personal
allowance is allowed to transfer £1,260 of their personal allowance (ie 10% rounded up to the next £10) to
their spouse/civil partner provided the recipient spouse is a basic rate taxpayer.

CAPITAL ALLOWANCES
First year allowances available
100% on new and unused zero emissions goods vehicles
100% on new and unused low emission cars ie electrically propelled or with zero CO2 emissions
100% on electric vehicle charging points
Annual investment allowance
£1,000,000 pa of expenditure incurred on certain plant and machinery
Writing down allowances
18% pa in the main pool

COMPANY VANS, CARS AND FUEL

Van scale charge
No charge applies if there is insignificant private use
£nil if van has zero CO2 emissions and £3,960 if it has CO2 emissions
Private fuel provided for company van
Additional £757

Tax tables FA2023 Page 8 of 13

ICAEW – Certificate Level Tax Tables
FA2023
Company cars – cash equivalent
Zero emissions cars 2% of list price
Hybrid cars with 2% of list price for cars with a battery range of >130 miles
emissions 1-50g/km
5% of list price for cars with a battery range of 70-129 miles
8% of list price for cars with a battery range of 40-69 miles
12% of list price for cars with a battery range of 30-39 miles
14% of list price for cars with a battery range of <30 miles
Other cars 15% of list price for cars emitting 51-54g/km
16% of list price for cars emitting 55-59g/km
17% of list price for cars emitting 60-64g/km
18% of list price for cars emitting 65-69g/km
19% of list price for cars emitting 70-74g/km
20% of list price for cars emitting 75-79g/km
Increased by 1% per 5g/km over the 75g/km relevant threshold
Capped at 37% of list price if emissions of 160g/km or more
Diesel cars that meet the Real Driving Emissions Step 2 (RDE2) standard are treated as above, all
other diesel cars have a 4% supplement added to the relevant percentage (subject to 37% cap)

Private fuel provided for company car

£27,800 x company car %

PAYE CODES
L tax code with personal allowance
M tax code with personal allowance plus claiming marriage allowance
N tax code with personal allowance less surrendered marriage allowance
S income taxed at Scottish rate of income tax
C income taxed at Welsh rate of income tax
K total allowances are less than total deductions
T tax code includes other calculations to work the personal allowance, for
example it has been reduced because estimated annual income is more
than £100,000

Tax tables FA2023 Page 9 of 13