Lincoln International Business School – MOCK PAPER 

1 Department Accountancy, Finance and Economics Student Name and Student ID To be included on submitted word document. Module Title Taxation Module Code ACC3165M Module Coordinator Ryan Girdley Duration of Assessment 3 hours 15 minutes Date Mock Paper 1 - 2022 Release Time TBC Submission Time TBC – 9:00 British Summer Time Word limit for each answer N/A INSTRUCTIONS TO STUDENTS: QUESTIONS TO ANSWER:Answer all FIVE questions MARKING SCHEME:Marks are shown against each question MATERIALS PROVIDED: Financial Tables are provided MATERIALS PERMITTED:Non-Programmable Calculators may be used. Candidates whose first language is not English are permitted an unmarked translation dictionary into the examination NOTES TO STUDENTS:Show all workings Module Specific Instructions to Candidates 1. All AFE students are required to uphold the highest ethical and professional standards in line with professional bodies. Any identified cases of unethical behaviour during the assessment may be reported to a relevant professional body and may impact on your ability to claim exemptions. Students are also welcomed to report any detected cases of integrity breach (anonymous reporting of a breach holds no weight). 2. To ensure academic integrity of our assessments in line with professional body accreditations, AFE students can randomly be called to a viva, which is an academic interview where you will be asked questions to check your understanding of the subject to help confirm the originality of your work. 3. Remember that due to the extended time limit, students may be tempted to write overly long answers. Please note, lengthy answers will not necessarily get you extra marks for discursive questions. Be guided by the marks available for each question and focus on the content and requirements. 4. QUESTIONS TO ANSWER: Answer all questions Question 1 is worth 20 marks Question 2 is worth 20 marks Question 4 is worth 20 marks Question 5 is worth 10 marks 5. MATERIALS PROVIDED: Tax Tables ACC3165M Mock Examination Page 1 of 2 Question 1 Frankie Adams has worked for Family Entertainment Ltd for several years. Frankie were made redundant at the end of the tax year 2021/22 and received the following redundancy package: £ • Lump sum ex gratia payment 47,500 • Statutory redundancy pay 2,500 • Payment for holiday not taken before termination of employment 1,000 • Contractual payment not to work for a competitor for 1 year 6,000 During the year Frankie earned a gross salary of £44,250 (PAYE £8,000), paid £10,000 into their employer’s occupational pension scheme under the net pay arrangement and has the following package of benefits in kind: • A petrol driven car with emissions of 175g/km and a list price of £30,000 which the company bought for £24,100. The car has been available from the start of the tax year. The company asked Frankie to make a capital contribution of £6,500 toward the cost of the car and to pay £40, per month towards the running costs of the car. • All fuel is provided for both business and private mileage and Frankie makes a part payment of her private fuel costs amounting to £750. Frankie’s private fuel estimate cost is £4,000. • A personal loan to the value of £15,000 at 1% interest which was loaned to Frankie on 6 April 2021. • A mobile phone for her private and business use. • Family Entertainment Ltd paid £15,000 in contributions to Frankie’s pension. Other information During the year Frankie received income from bank interest of £11,200, dividend income of £12,150 and interest from an Individual Savings Account of £3,500. They also had National Savings Certificate income of £280 and Premium Bond prizes of £25. Frankie made a Gift Aid donation of £2,400. Official rate of interest is 2%. Required: Prepare Frankie’s income tax computation and find their tax payable for the year to 5 April 2022.