UK – TX Mock - 02
Newaz Karim ACCA
Total Marks: 100 Marks
Total Time: 3 Hours
Do not mark the answers
Best of luck
1. Dennis has made a deliberate error in his self-assessment tax return for the tax year
2021/22.
What is the time limit for HM Revenue & Customs(HMRC) to issue a discovery
assessment?
A. 5 April 2023
B. 5 April 2026
C. 5 April 2028
D. 5 April 2042
2. Quinn will not make the balancing payment in respect of her tax liability for the tax year
2020/21 until 17 October 2022.
What is the total percentage penalty which Quinn will be charged by HM Revenue&
Customs(HMRC) in respect of the late balancing payment for the tax year 2020/21?
A. 15%
B. 10%
C. 5%
D. 30%
3. More Ltd prepares accounts to 30 September each year. It was given notice by HM
Revenue & Customs(HMRC) to submit its corporation tax return for the year to
30 September 2021on 30 November 2021. The return was submitted on 1 December 2022.
This was the first late return for the company.
What is the maximum penalty payable by More Ltd as a result of its late submission?
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4. Troy is a sole trader who had a trading income of £60,000 in the tax year 2020/21 and
£80,000 in the tax-year 2021/22. He has no other income. He joined a personal pension
scheme on 6 April 2020 and made a gross contribution of £25,000 in 2020/21. This was the First
pension provision that Troy had made.
What gross amount can Troy contribute to his personal pension scheme in March 2022 without
incurring an annual allowance charge?
A. £55,000
B. £40,000
C. £135,000
D. £25,000
5. Ella started in business as a sole trader on 6 November 2021 and prepared her first set of
Accounts to 5 April 2022. On 6 December 2021 she acquired plant at a cost of 430,000.
What are the maximum capital allowances that Ella can claim for the period of account to 5 April
2022?
A. 339,133
B. 419,067
C. 417,667
D. 430,000
6. Shona started in business on 1 January 2022 as a sole trader and prepared her first set of
accounts for the 14 weeks to 5 April 2022. Her taxable trading profit for the period was 10,600.
What are Shona’s total national insurance contribution for the tax year 2021/22?
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7. Ellen purchased an antique vase for 1,500. In October 2021 she sold the vase for 7,000.
What is Ellen’s chargeable gain on the sale of the vase?
A. 0
B. 1000
C. 1667
D. 5500
8. For the tax year 2021/22, Moon has a chargeable gain of 24400 and a capital loss of 10,000. She
has unused capital losses of 6,100 brought forward from the tax year 2020/21.
What amount of capital losses can Moon carry forward to the tax year 2022/23?
9. Joel and Sunita were a married couple. Sunita died in July 2008 and 65% of her nil rate
Band of £312,000(2008/09) was unused. Joel died in May 2021. He had made a
Potentially exempt transfer (after all available exemptions) of £75,000 in August 2017. Joel
Left his estate to his sister. Any relevant election were made.
What is the nil rate band available to set against Joel's death estate?
A. 325,000
B. 452,800
C. 461,250
D. 536,250
10. Thibuet died on 13 August 2021. In his will, he left 200 in cash to each of his five nephews.
Investments held in ISAs valued at 350,000 to his daughter, and the residue of his estate which
amounted to 520,000, to his wife.
What is the chargeable estate for IHT purposes?
11. Mane runs a financial services business making exempt supplies. Barry runs a children’s clothing
shop making zero-rated supplies. Chris runs an adult clothing shop making standard-rated
supplies.
Who is making taxable supplies and therefore can reclaim input VAT?
(Your answer can be two persons)
12. Olive is a sole trader who is registered for value added tax (VAT). On 10 October2021 she
Purchased a motorcar for£12,000(inclusive of VAT)to use for business and private
purposes. The private use is estimated to be 30%. On 1 December 2021, the motorcar was
damaged in an accident and the repairs amounted to £2,000 (inclusive of VAT).
What is the input tax Olive can recover in relation to the motorcar for the quarter ended
31December2021?
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14. Charlie, a United Kingdom (UK) value-added tax (VAT) registered trader, made a supply of
Goods in February 2022 to a customer in France who is VAT registered there.
What rate of VAT will Charlie charge on this sale?
A. 0%
B. 20%
C. 1/6
D. 5%
15. What is illegal?
A. Tax Avoidance
B. Tax Evasion
MTQ - 01
The following scenario relates to Question 1-5
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MTQ – 2
The following scenario relates to Question 1-5
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MTQ – 03
The following scenario relates to Question 1 – 5
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Constructive Response Question – 01
Constructive Response Question – 02
Constructive Response Question – 03
