ACCA F6 Exam Tips September 2017 Session given below are just intelligent guesses from exam point of view provided by famous tuition providers. These exam tips must not be relied on totally. To increase chances of success in Exams you must prepare full breadth of syllabus and topics
ACCA F6 Exam Tips September 2017:
ACCA F6 Exam Tips September 2017 session are given below by famous tuition providers
Make sure you read the tax rates and allowances in the exam. You may find they prompt you to remember things. For example, as high emission cars only receive a 8% WDA for capital allowances it may remind you that high emission leased cars with CO2 of > 130g/km have a restriction in taxed adjusted profit computations of 15%.
The badge of trade to determine if someone is self employed can be remembered using the mnemonic SOFIRM and FAST:
- Subject matter of the transaction
- Ownership period
- Frequency of the transactions
- Improvements and marketing
- Reasons for sale
- Motive (profit)
- Acquisition (method of)
- Similar transactions
- Income tax: Looking at a sole trader or partnership business and calculating the tax adjusted profit. Calculating the income tax liability, with the savings income and dividend income nil rate bands being examined.
- Corporation tax: Looking at a company with a long period of account, requiring two corporation tax computations. Corporation tax implications of companies belonging to a 75% loss group
- Chargeable gains: Calculating gains made by an individual on disposals of residential property versus disposals of non-residential assets
- Inheritance tax: Calculating IHT on lifetime gifts made within 7 years, with taper relief, and looking at advantages of lifetime gifts over death gifts
- VAT: Calculation of VAT payable, overseas aspects of VAT and VAT groups
Watch out for some sort of tax planning question, for example, how profits from a company should be extracted or looking at the tax planning opportunities available to married couples.
Expect at least a couple of the OTs to be devoted to the administration of income tax and corporation tax. So, you have to be comfortable with the following:
- Due dates for the payment of income tax (including payments on account).
- Due dates for the payment of corporation tax (including instalments for large companies).
- Filing dates for the income tax and corporation tax returns.
- Penalties and interest for late payments and returns.
Also likely to be tested in section A are:
- VAT rules on registration, impairment loss (bad debt) relief, and SME schemes relating to cash accounting, annual accounting and flat-rate schemes.
- IHT due to lifetime transfers both in the donor’s life and on death.
- Statutory residence test for individuals.
- Identification of groups of companies for corporation tax loss reliefs and gains.
- Trading loss reliefs for both companies and sole traders.
Section B – see section A and think longer scenario!
At least 50% of your revision time has to be spent answering section C questions in the practice and revision kit.
Remember to learn the income tax and corporation tax proformas.
Calculations which require no more than two or three entries into your calculator can be included on the face of your proformas (eg time apportioning a salary). Calculations which are more complex (eg company car benefits) need separate workings which are properly referred (W1, W2, etc) and have a heading.
Make sure to attempt the narrative parts of the requirement – aim for as many sentences as there are marks with each sentence containing something technical. Keep your paragraphs to no more than three sentences long.
The two longest questions will focus on income tax and corporation tax. These are likely to include the following:
- Employment benefits.
- Property income.
- Adjustments to profit to arrive at trading income for both companies and sole traders –in past sittings we have seen a number of questions whereby you have to correct errors in computations included in the scenario.
- Relief for pension contributions.
- Capital allowance computations.